My Facebook post:
THE FUNDAMENTAL PROBLEM WITH FIAT CURRENCIES IS ACCOUNTING. CRYPTO CURRENCIES FIX THAT.
Comment 1:
Just a quick question bro... with fiat currencies currently every country has its own currency. Not really sure whynthatbis, but I assume it's for maintaining the sovereignty of nation and it's unique identity in the global market, hence why we have forex markets, etc. Is crypto currency able to maintain the sovereignty of a nation's currency...eg will the US be able to keep its own crypto currency versus Russia having its own version and also China, etc? Or will one currency be used for all countries? 🤔🤔
My response 1:
Crypto currency is a free for all. There are currency wars in crypto currencies just like fiat currencies. We can have as many crypto currencies as there are people on this planet. The challenge will be how many people are using it. So we can have a dereckcoin and a jamescoin but their survival will depend on how many people are using it. So far bitcoin is ahead of the pack followed by Ethereum and litecoin. But will these always be on top? Not necessarily, they have problems. They solve fiat currency problems but they also have problems, implementation problems, scaling problems, adoption problems, liquidity problems etc. And mass adoption is still a challenge, legislation is still a challenge, protocol standardisation is still a debate.
If a country decides to create their own altcoin, it will face the same challenges as other crypto currencies.
Crypto currencies thrown the issue of sovereignty out the window. Everyone and anyone becomes a bank. It’s the decentralised philosophy behind crypto currency. It’s the new language of value exchange. Ties in well with the IoT. Fiat currency is the old language. Before fiat currency, gold and other precious metals was the language. And before that even salt and stones and beads and cloth was the language. They say that’s why vadzimu want cloth when appeasing them, it was a value system during their time. Crypto currency is the internet of money, the new language of value exchange.
My response 2:
Crypto currency will disrupt our way of life. We at least need to understand it. It’s a new way of doing business and our understanding of the institutions of fiat currencies is a mental block in understanding crypto currencies.
Comment 2:
I agree with you on most of your points. But looking at how fiat currency works currently how do you see the idea of people 'needing to understand' it being the drive behind acceptation and adoption. The way I see it any currency adoption has always been driven by the government, the authorities, etc. Like in Zim, wen Zim.dollar failed, Gono introduced bearer cheques, when they failed, multiple forex currency system was adopted, and now we hav Bond note. It has always been the dictation of the rulership and governing powers to establish the medium of exchange. I assume that's how mist countries operate also. So do we really need people to be trying to understand how crypto and blockchain work or should governments be dictating that a certain natiin will henceforth now be using it? Given a choice humans have a tendency if either being reluctant to learn new things or to change teh current status quo.
My response 3:
When I talk about ‘understanding’ I’m referring to policy leaders and thought leaders. People don’t understand money and they still use it. The institutions set up by governments are failing. The banking system is failing (2008). The blockchain is providing a solution to the banking crisis.
Here’s an example. It costs about 10% to send money to Africa through the fiat currency system. With bitcoin, it costs only a few pennies regardless of the amount.
Which is more convenient? People choose convenience.
The adoption of crypto currencies is a challenge but that doesn’t mean there’s no solution to it in the near future.
One thing for sure, crypto currency is a solution to the challenges that fiat currencies are facing. It will win just like fiat currency won over gold and minerals.
The other reason I call for the understanding of crypto currencies is for those who want to make a quick buck by trading on speculation.
There are dodgy ICOs and some credible ones. If you want to trade, do it the long term warren buffet way.
Serious governments are studying the blockchain behind the scenes. It’s an accounting protocol with applications everywhere including finance.