Can digital currencies really replace traditional money?

patriamreminisci (58) · 7 years ago

Replace?
Meh, I think it will be a long time before that happens. The thing nobody likes to talk about with digital currencies is... well, to put it simply, no one is spending them as currency for the moment. Everyone is hoarding them. They're not being used as an exchange medium very much.
Now with that said, they are definitely here to stay, and they're going to be one of (key words: one of) the things any investor needs to add to their bag of assets if they want to stay competitive, just like stocks, bonds, and commodity assets.
Ask this question about digital currency replacing standard currency about fifty years in the future and it may result in a very different conversation, but for now... well,
"hodl on just a minute here."

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5 votes

excy4yaweh (38) · 7 years ago

I completely agree with you @patriamreminisci . most people are just stacking and hodling the coins for now. and most are still converting to fiat to buy lambo.....

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sherwoodcrypto (25) · 7 years ago

People in some countries like Argentina, Zimbabwe...may use crypto soon because they don't believe in their current fiat, their government is very bad in control the inflation.

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patriamreminisci (58) · 7 years ago

I hadn't thought of that. But wouldn't they all have to agree on a specific crypto, and a specific medium of exchange?
See, that's one of the problems with the liquidity of cryptocurrencies: they're not easily interchangeable, and they're not easily transferable. For instance, if I'm holding 13,000 SMT, and I want to pay you 20 of those, but your wallet doesn't take them, then I can't send money to you. If you're holding BTC and want to try and send them back to me, the same is true (and let's not even get started on the insane transaction fees when using BTC).

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lordjames (62) · 7 years ago

The issues you stated are right. They should be of serious concern to everyone who is involved in the blockchain technology. But we also know that this tech is in its infant stage. As we discover challenges from day to day, we'll also rise to bring solutions to them. You wrote a post about two weeks ago and I commented that cyber security should be a thing of serious concern to everyone. Everyone should take a little time to study and understand at least the basic on how to protect his/her self from cyber theft.

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4 votes

kouba01 (81) · 7 years ago

I think they won’t replace fiat money for a very long time. BUT there will be parallel economies independent from government’s violence and people will use all sorts of currencies to voluntary trade with each other.

Decentralization cannot be technically stopped (unless you destroy the Internet) so it’s just a matter of time when governments will become obsolete/irrelevant, and perhaps even slowly die out.

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3 votes

bllslnylmz1 (43) · 7 years ago

Today, money is the cause of most problems. But it is the most important thing that man invented. And it looks like it will not lose its importance in the future.

The physical landscape of the global economy from the marble pillars and giant halls of classical banks to the skyscrapers of modern financial districts has undergone an incredible change over the last century.

Here are the banknotes and the registration money. The dollar rushes in the money. Against the dollar empire, other countries want to strengthen their currencies. In trade, the use of spindle money is being tried. Euro wants to be a rival. The banking system is highly developed. Every day in the world billions of electronic money transfers (EFT) take place. Barter systems are evolving. It is being questioned whether the cash will be replaced by digital money.

According to author John Sladek, "the future will be the same as the past, but much more expensive," according to some scholars.

But if you look at the development of Bitcoin / crypto money, which is the subject of our writing, the history will be watched again. Whether it's paper money or digital money, those who live in it will see it.

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3 votes

mineopoly (64) · 7 years ago (edited)

Thank you @amiramnoam. I'm glad you shared this. I'm sorry about your friend that was hacked. That is so scary.

I believe it was the Israeli prime minister who said, "Are banks doomed to eventually disappear? The answer is, yes." Banks will need to reform or be replaced. In time the technology will improve to be secure.

I like what you said about volatility. If there is agreement among the nations we can have a stable crypto.

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worldtraveller32 (64) · 7 years ago

Cryptocurrency is still new, eventually it will evolve more for future

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mino.gris (44) · 7 years ago

I guess all banks will start improving their services.
Not only that but also I think MasterCard and visa will create a new global blockchain for all transactions.

So, blockchain technology is here to stay and grow.
But cryptocurrencies may still here and may not, that depends on how many problems they solve :D

For example:
Now, bitcoin and all other Crypto are solving the issues of the current financial system about transactions time and cost and having a bank account that's why they became popular, but will these problems stay in the future or not!

But I feel that Cryptocurrencies are going to be more popular in the next 2 years :D

Thank you for sharing this info with us @amiramnoam :)

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12 votes

jassi (60) · 7 years ago

yes right dude

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3 votes

kjnk (50) · 7 years ago

Not unpegged, volatile assets. Stablecoins on a blockchain could though.

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kurtgrey (50) · 7 years ago (edited)

Well, it's too hard to predict these things...

#my2Cents Problem regarding Crypto-Currencies (CC) growth is bad infrastructure. The more things are developed to either accept CC or make usage easier/more understandable the more people will use it.

Imagine if Amazon will accept CC from tomorrow. This one thing will probably give huge growth to CC market.

Problem you described here is quite valid, but if look at history you will see that there always were these kinds of problems when something new came in (Credit Cards/Paypal/etc.)

Obviously there are some good arguments for and against CC... But in general, still, it's too hard to predict how and where this will end up.

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8 votes

whiteliquor (51) · 7 years ago

I see people paying with smartphones all the time at the grocery store. And then there is the war on cash, so why not? It's just few steps further along.

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kivsha (53) · 7 years ago

פוסט מעניין :)
אני חושב שהתרומה הגדולה של הבלוקצ'יין למערכת הבנקאות היא כמו במקרה של הריפל - הבנקים יכולים להשתמש בפרוטוקולים של הלבלוקצ'יין ע"מ לבצע העברות כספים בלי מליון מתווכים שיגזרו עמלה שמנה בדרך, ובתקווה - זה יתגלגל אלינו הצרכנים.

עניין נוסף שעשוי לשפר את המצב שאתה מתאר - במידה ובורסות גדולות יעבדו כמו סוג של "בנק" - תהיה להם מערכת בקרה על טעויות קריטיות בכתובות אליהן שולחים (למשל מישהו ששולח ביטקוין לארנק של אתריום) או שליחה לכתובת שאיננה קיימת, ואחריות מבוטחת על הכספים של האנשים - זה יצריך קבלה רחבה של הקריפטו, זה ברור, אף חברת ביטוח לא תתעסק עם משהו שאיננו ברור מבחינה חוקית.

אני לא בטוח באופן כללי שהקריפטו יחליף את הכסף לחלוטין, אבל לאנשים זהירים יחסית מבחינה פיננסית, ובשילוב של ביטוחים שנקווה שיהיו - נתח השוק הפוטנציאלי של הקריפטו למטרות שונות, כמו למשל העברות בין-לאומיות בעמלה אפסית, יגדל ויגדל.

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jatinhota (72) · 7 years ago (edited)

Mate, There will always be a gap between convenience and security.
I feel sad for your friend, but He should be more careful.
In bank it's convenient, but we are not the owner of our money even if it's regulated. As in severe bailout case that 30K can be slashed to 10K or whatever as per govt rule.
But in the case of crypto, we are the owner of our coins; It can't decrease or stolen without our known or known mistake.
But, I also feel there should a way anyone could recover the crypto used unauthorized.
I am pretty sure, Above system will appear soon as crypto still in the infant stage and unregulated.

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eldahcee (54) · 7 years ago

Cryptocurrency security (or let's say retrieval) technology is still at its weakest.

Had a friend that list over $5000 worth of bitcoin to a forex trader. The guy helped him trade, brought back profits, my friend reinvested more and when he did, the trader eloped with the money and suddenly went incognito.

Now if it were raw cash, you would have proofs and probably trace the money and retrieve it.

Most crypto platforms are decentralized where you really do not have to out your ID or even give a fake ID and you won't get caught.

Fine! Its a fast way of making payments but honestly its so unsecured.

And nobody would want to put his or her hard earned money into something or somewhere that's unsecured.

So. I really do not see crypto taking over.

At least not now..

Thanks for sharing @amiramnoam and thanks @yoo1900 for supporting

images(2).jpeg

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4 votes

rezoanulvibes (75) · 7 years ago

Yes, volatility is a problem. The value in terms of dollar changes pretty fast. Still I think that cryptocurrency and blockchain will come to the mainstream. It just takes time.

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kavitkar12 (25) · 7 years ago

yes I believed that, Digital Currency will replace traditional currency

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slaydraye (45) · 7 years ago

Absolutely no way. The people who believe crypto will replace traditional forms of money in its current stages are shills, fools, & kool-aid drinkers. Crypto does not take the function of money you’d use in everyday life. Why would you spend crypto when you’re speculating on the price and would rather hold it to see how much you can eventually sell it for? If anything they are more of assets like gold & silver than currencies. You do the exact same thing for gold & silver. You buy & hold it until you can sell it to a greater fool.

Don’t get me wrong, I love crypto & the entire space & want to see it thrive, but any person who has taken basic economics understands that fully Austrian economic states do not work which is what bitcoin is.

Let me explain: Basically, the point of Austrian economics is to hold the value of what you have so that it never drops. Doesn’t seem that bad right? It doesn’t until you factor in the ENORMOUSLY wealthy people who already own a lot, not losing any wealth through incremental inflation (forcing them to spend money instead of holding it).

The US economy is a spending economy. The whole point of the Keynesian economic system was to encourage spending by the enormously powerful & rich. Because let’s face it, 3% of a loss to a poor person with $100 is only $3 but 3% of a loss to a rich person with $1,000,000 is $30,000.

I believe a proof of stake economic model in cryptocurrency would represent the best possible form of a future currency. A well-structured & thought out blockchain that would maintain a consistent 1% inflation rate.

To reiterate, I do have high hopes for crypto, but people who miss the moon & blindly fly into the sun will burn themselves. Invest in moderation peeps.

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shagorshikder (54) · 7 years ago

i don't know...wht's really true....
j have know clearly firstly..but thank you for showing us.

resteem done

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jeckt84 (46) · 7 years ago

We can see crypto as an investment tool right now, just like the stock market. One day you're up 50% to the next month you're down 75%. No one knows what will happen.

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lumidy95 (25) · 7 years ago

It will only try to take over.

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jahirul18 (36) · 7 years ago

wow very nice steemit blog post

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salma-akanda (52) · 7 years ago

wow...very nice steem blog.

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muzaifwani (51) · 7 years ago

i think it needs still alot of development regarding wallets ,security etc

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spirits4you (57) · 7 years ago

hey @amiramnoam,

isn´t the main question how one can get all the money out of his wallet just by having the private key? I think more importantly should be the question why has your friend not put additional security messures in place such as 2-fac-autorization or even higher implementations?

I truely believe that your friend has partly fault as well as he made it the thief that easy to get his money.

In terms of your main question whether digital currencies may be able to replace fiat money I do think a change is already taking place and it may only be a matter of time until banks will be outdated - at least if the do not addopt and add digital currencies to their portfolio.

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yairdd (67) · 7 years ago

NO.
It will never replace the traditional money.

No explanations needed in my opinion. Its just cant

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nafisislam (53) · 7 years ago

Meh, I think it will be a long time before that happens. The thing nobody likes to talk about with digital currencies is... well, to put it simply, no one is spending them as currency for the moment. Everyone is hoarding them. They're not being used as an exchange medium very much.
Now with that said, they are definitely here to stay, and they're going to be one of (key words: one of) the things any investor needs to add to their bag of assets if they want to stay competitive, just like stocks, bonds, and commodity assets.
Ask this question about digital currency replacing standard currency about fifty years in the future and it may result in a very different conversation, but for now... well

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cr-7 (42) · 7 years ago

Great your money post

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chetanpadliya (71) · 7 years ago

The day will come when digital currency will dominate financial world!

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latifah1 (55) · 7 years ago

I do not understand about bank competition
and volatility
explanation you add the science of me

thank you

Please help me

my score is still very low

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katebooks (42) · 7 years ago

It's a little difficult for me.

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jakir007 (45) · 7 years ago

nice your post Thanks for sharing

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farhan12 (43) · 7 years ago

Cryptocurrency is future and my toughts is now best time to invest and one day full world know about cryptocurrency

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paraderojuvy21 (25) · 7 years ago

yeah its true there must be a solution for that.

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greene101 (43) · 7 years ago

Thanks for sharing i will done upvote I always see your post.

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roonyy (45) · 7 years ago

No, i'm pretty sure is no. Traditional money.couldn't change. Cause people still want to see and have a money in physical form.

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jona12 (63) · 7 years ago

I think the world has changed and we are now living in anew eera. Governments pretend to neglect cryptos but it will come finally. Look, It takes nothing but just information for the people to embrace cryptos. If only the people can be able to embrace cryptos, then governments won't have any say about it. Some people were not fine with the brexit or homosexuality law, but the people made a choice.

I do always think that in future 5 to 10 BTC will be a subject of referendum. In Africa, most people do not allow cryptos, but now Nigeria it self has more than 2 millions BTC accounts wallets. I no longer believe in the idea of ivesting in the banking sector, cause i believe intermediaries charge more than the particular actors...I would rather keeping my money and take cntrol over it When you relate the story of your friend, It shows that cryptos have also also disadvantages, but fiat has more disadvantages than cryptos.

If you stay in Africa, you will probably understand the funny monetary and fiscal policy used. How can you print money and use it when it was meant for the community '' corruption '' and at the end inflation when the rich guy has saved his money in U.S.Dollars to gain more when inflation hits.

I would prefer the hacker stealing my money than seing my Brother on he armchair chewing it.

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worldtraveller32 (64) · 7 years ago

true but this is way it is

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yassinof (51) · 7 years ago

30,000 dollars is such a huge amount, sorry for that and hope we can have control over our money as soon as possible.

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zbmaan75 (49) · 7 years ago

The issues you expressed are correct. They ought to be of genuine worry to everybody who is engaged with the blockchain innovation. In any case, we additionally realize that this tech is in its baby arrange. As we find challenges from everyday, we'll likewise ascend to convey answers for them. You composed a post around two weeks prior and I remarked that digital security ought to be a thing of genuine worry to everybody. Everybody should set aside a little opportunity to ponder and comprehend in any event the fundamental on the most proficient method to secure his/her self from digital burglary.

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criptouniversia (26) · 7 years ago

We seriously think that the current financial system will be replaced by digital money. We must understand that it is a new technology and that is why cases such as the one mentioned in your article are common, but in a few years everything will be digitized, it is absurd to think that our children will physically go to a bank, our children would prefer to have their money in an own wallet and not depend on intermediaries, in short, the cryptocurrencies have come to stay and form the new financial system, indeed, the current financial system is showing its inability, as evidenced by the numerous financial crises that we have been suffering, a financial system strong would not collapse in a way as simple as it did in 2008. For us it is complex to understand because we are not digital natives, but our descendants will live with this technology as normal as we live with the Internet. Regarding the case that comments, cybercrime existed before the arrival of bitcoin, and will continue to exist so the bitcoin fails, the bad guys are always one step ahead in technology ... only remains to be trained and be cautious

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sizuka (53) · 7 years ago

that's great reflection.

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lewandowski (33) · 7 years ago

Of course, can replace the traditional money but it will be hard as the government will not accept that easy, as they want to manipulate us every second. Now they fight with crypto as people getting extra income for not doing really much and that what goverment dont like it, we are a marionetes of the world and they want to control us all the time. But i believe in blockchain and I believe that will change the world.

Bless!

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thatindianlady (70) · 7 years ago

replacement not happening anytime soon for sure.

Once lost is lost, is what makes me love traditional currency more.

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selina2 (50) · 7 years ago

great post.The physical landscape of the global economy from the marble pillars and giant halls of classical banks to the skyscrapers of modern financial districts has undergone an incredible change over the last century.

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jakboy (39) · 7 years ago

excellent

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aslimboy (33) · 7 years ago

Not entirely, maybe we use it like debit card or credit card except we only use phone for the transaction

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chloroform (62) · 7 years ago

I think there are so many things that can be improved in digital cryptocurrencies. Can it replace the current traditional money? I prefer to use the word "not yet". I'm opened to the possibility that one day, we will be using crypto instead of traditional money. We can predict but do not succumb to the illusion that we actually know what going to happen.

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tasauver (55) · 7 years ago

Crypto money is big thing but it's centralisation in the current business market is a big thing yet to happen.. we need globalisation of the crypto..Though it's existence is bit volatile in market but yet it has serious chances of becoming a great competitor to current existing currency module :)

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faisal79 (53) · 7 years ago

bitcoin is my life..../////.//././././

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wa2qr (58) · 7 years ago

I think that digital currency is better than traditional currency in some aspects. Government eat up most of the money through taxation and stuff and digital currency is free from any type of government intervention.
But digital currency is not totally safe as you already said hackers come into effect. So we really can't decide. It's a matter of priority.

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nightwind (38) · 7 years ago

Crypto which has no backing but for the fiat currencies of countries in which it is traded in. Is in fact controlled by those countries and they can pull the plug on crypto in a sec just by saying it can not be traded within their countries borders... The End

Now there is enough money in the system for the big big boys to pump and dump, when the rate hit around 10k one investor pumped in 300 million usd and that is part of the rise your seeing now. Question is they know he bought it they do not know when he will dump nor do they know who he is. Welcome to a unregulated stock market...

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emon10 (27) · 7 years ago

Thanks for sharing @amiramnoam
upvoted

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ny4.one (42) · 7 years ago

before all the people also rejected the findings of A. Einstein and even think of him as a madman. moving on from it I'm sure bitcoin will someday be a calculated currency

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kkbaardsen (50) · 7 years ago

I don't think that cryptocurrencies will replace fiat currencies outright for a very long time and as you posted above its due to volatility. At the moment, cryptocurrencies behave less like a currency and more like an equity in that it holds a value that changes from day to day based on trading. This makes it a difficult decision to actually spend bitcoin for example to make a purchase. Until the volatility drops to more manageable levels, it won't be a currency.
But will it replace banks? This is a difficult question to answer as banks do more than just hold onto your money. They offer more services that aren't currently being offered by cryptocurrencies, such as debt financing. The day you can get a mortgage backed by a cryptocurrency such as bitcoin will be the day that banks will become obsolete for the average person.
Banks are however fighting back to ensure they retain some control by adding in blockchain technologies into their infrastructure. But this is more an effort to lower costs as opposed to replacing traditional fiat currencies. Its still a bit early to see how things will progress. I am still optimistic about crytocurrencies despite this.

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bitgeek (62) · 7 years ago

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dishamoni (43) · 7 years ago

thanks for shearing.i like your post

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steem-samiam (64) · 7 years ago

That is so sad your friend lost that amount of crypto! All Cryptos are truly the wild west. Thanks for letting us know.

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realsteemian (52) · 7 years ago

I think in future it may replace because there is an emerging subject Crime Economics, which deals with overcoming the scams and frauds in money.
Anyhow nice post

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buster544 (52) · 7 years ago

Printed money is worthless and only as valuable as a person believes it to be or accepts it to be.
Crypto is the same, it’s run by a votile market, people manipulate it just like anything else, lots of pump and dumps going on, in time governments will implement some sort of new monetary system, and may very well be on a blockchain.
So yes crypto is here to stay, but Gold and Silver in hand are really the only true assets I believe that are actually owned by the person holding them.

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harktheshark (46) · 7 years ago

I really like this post and all your points.
First of all, isn't our current money already more or less digital. Common sense tells me, that there is way more money on banking accounts than ever printed.
To address the problem with lost money and trust, there will be a need of some type of payment processor. Some instance which is going to validate trades, making sure crypto isn't sent to the wrong address, making crypto more convenient, forgiving and trustworthy.
Here i see a role for banks, to bring a service which provides these attributes mentioned above.
Just some thoughts from me, like a lot of other here said already, this is just the start and there will be a lot of development

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manchochris (66) · 7 years ago

As far as I can see technology is taking over and I have no doubt that digital money will surely replace the physical money. This is against time thats all

@manchochris

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steemingluiwe (25) · 7 years ago

Security issues hinged on technology are easier to resolve than those based on human interference. That is why crypto currencies could gain the upper hand in future.

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kezza (35) · 7 years ago

I think the biggest problem for most people is that they don't understand the technology they use. They are unaware of the need to secure their online presence. Since most of our financial lives are now online, everyone needs to wake up to the importance of cyber security.

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meernay (30) · 7 years ago

Crypto and traditional currencies work together going forward. @amiramnoam

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