Will Cryptocurrencies Replace National Currencies?

Thanks for your insight Louis. I think there’s a difference to be made between a country porting its national currency on a blockchain via some central bank-managed peg and the actual adoption of a decentralized blockchain-based currency. The former opens the door to easy mobile and micro paiements for the existing national currency. The latter is more challenging as it could effectively remove the power of creating money from the state/banks "cartel". That would introduce many problems for the state and the current financial/banking system. The most likely outcome is a system of competing currencies where the debt-based, inflation-ridden sovereign currencies will have to compete with sounder decentralized cryptocurrencies. Nothing beats a free market. Time to end the state monopoly on currencies.

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13 votes

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dhouse (57) · 7 years ago

Andreas Antonopolous was asked this question, and he gave a fascinating answer. He said it's equivalent to asking, at the time, if email and the internet are going to replace fax machines.

It's not that they are going to replace the existing currency system. That are going to usher in a whole new system and paradigm that we have never seen before.

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8 votes

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louisthomas (75) · 7 years ago

I love that response! Nobody comes close to Andreas.

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3 votes

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dhouse (57) · 7 years ago

Yeah he's great to listen to.

I'm amazed by what you said about Estonia!! I'm going to have to look into that, if it happens that would be pretty crazy.

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louisthomas (75) · 7 years ago

They were planning on doing it, but then the EU stepped in and told them that they weren't allowed. They have no choice but to use the Euro. So probably won't happen now :(

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3 votes

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etherecash (39) · 7 years ago

Yes. It was a very good answer. That's what gonna happen

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samstickkz (65) · 7 years ago

It will, but it will take some time because cryptocurrencies are very volatile

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5 votes

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fechaugger (48) · 7 years ago

It depends on the countries. BTC replacing traditional currencies in Venezuele and Zimbabwe. Yes I can see that.

But in the EU, USA, China and Korea. It will be a lot harder to win people over.

And I'm worried about the price that keeps skyrocketing, while BTC has virtually no adaption(In the normal community, so not geeks who buy sometime online with BTC for the heck of it).

Let's say the price keeps growing and growing. Then why would the non holders want to get BTC? That would be like financial suicide.

At the current growth BTC will become too expensive for the average household. Which is something we can't have.

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1 vote

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louisthomas (75) · 7 years ago

Absolutely. It's not gonna happen overnight.

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2 votes

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jobsande (47) · 7 years ago

true, although it might be a lot sooner than 10 yrs! I never though Bitcoin would go up so much so fast... I remember just a few months ago hesitant to buy it at $3700 hundred since it was already up so much already. Now kicking myself I didn't buy more back then obviously :P

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kevinwong (76) · 7 years ago

Everyone, including banks are uncertain where to put their resources. My as well just chuck them in cryptos. Btw, this 1997 book answered it all!
https://www.amazon.com/Sovereign-Individual-Mastering-Transition-Information/dp/0684832720

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2 votes

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louisthomas (75) · 7 years ago

Not familiar with that book. Might have to check it out. Cheers Kevin!

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1 vote

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openmusic (52) · 7 years ago

😍A very informative post. Great job. Keep it up! 😍
OpenMusic Steemit Kiss.gif

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3 votes

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lisandro9 (25) · 7 years ago

What do you think about Tether ?

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1 vote

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xsid (51) · 7 years ago

The real reason bitcoin will continue to grow long-term:
https://steemit.com/bitcoin/@xsid/the-real-reason-bitcoin-will-continue-to-grow-the-unbanked

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1 vote

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justinansako (52) · 7 years ago

I don’t know how to answer this. But I’m pretty sure every country wanted to have their own currency. Not even a country now some company also wanted to make their own currency with ERC-20, making their own token as ICO.

So to anwer that, yes and no. Maybe in the future every country will have their own digital money.

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1 vote

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alexkf (34) · 7 years ago

thanks for your post ...
very inspiring .....

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1 vote

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vox00 (42) · 7 years ago

No it want simply because of the greed inside of the crypto currency world

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thelavishtrader (28) · 7 years ago

The government is always trying to regulate things so I'm not sure. I'll wait a couple of years and see how things go. I honestly would love to see it replace the USD and other currencies.

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doctorvee (49) · 7 years ago

It would certainly, it would become most trusted. Internet was alien to everyone at a time in out lives. The Blockchain is the new internet and the young ecosystem would soon become the in-thing. In my own understanding. Yes it would take over and wth time

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andersdakin (36) · 7 years ago

Cool

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bitgeek (62) · 7 years ago

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jobsande (47) · 7 years ago

@loisthomas why did you mention Ethereum out of all cryptos? Just curious... also in my opinion it will happen a lot sooner unofficially than it will completely sanctioned / in law. Just as you $USD and Euros are unofficially used in countries as an alternative to the native currency because they're more stable (relatively speaking ;). I'm in Belgrade at the moment, and just learned how day to day transactions are in the local Dinar but bigger transactions like purchasing a car, house, paying rent, etc are often in Euro.

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contentking (60) · 7 years ago

I'd love to see crypto replace fiat currency. However, and I hate to say this because I HATE banks, it's going to depend on whether or not the banks decide to back crypto and profit from it, or if they decide to shun it.

I've heard opinions from both sides, and some say the banks are scared to death of crypto, and others say that banks are in the process right now of figuring out how to welcome crypto into the fold.

At this point in time, I don't think anyone could give an answer with any certainty. It's plain guesswork.

All I can say is that I think whatever happens, it's going to happen in the next 5-10 years. It's certainly going to be VERY interesting to see what happens. In the meantime, I'm along for the ride (and what a ride it's been so far)!

Great video!

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mirela (26) · 7 years ago

I'm sure it will !

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janashby (49) · 7 years ago

I can see why these small countries are interested in 'making a Splash' by adopting the cryptocurrencies EARLY On.

And it's wacky to think that Russia is going to have their own crypto ♦♦ дикий (TRANSLATION = WILD )

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nikethemutt (53) · 7 years ago

No. Not stable enough.

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philakonecrypto (58) · 7 years ago

hey louis. almost nice to see your videos. keep up the good work.
just trying to get myself out there as well. I would recommend to see my work guys! you may like what you see on my blog and youtube.

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2 votes

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cryptomeeks (53) · 7 years ago

Cryptos should replace all fiat, but should remain anonymous.

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aaronburt (57) · 7 years ago

Estonia actually has really cool and innovative ideas. They have an awesome but often unnoticed technology sector. I also think that cryptocurrency would be a great idea for the future of venezuela. A great way to circumvent the socialist government and to implement capitalism from the bottom up.

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junubia (43) · 7 years ago

I dont think so

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molfzart92 (34) · 7 years ago

While I would love to see this happen, I don't believe it will occur. It would be way more believable that governments/banks create their own crypto instead of people just believing these institutions are going to fall out of the game and BTC will take over. Not to take anything away from BTC or these other cryptos, I think they are going to be around for a LONGGG time. Great question to ask though..

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sandeepp (34) · 7 years ago

NO, it is not going to replace in near future, But what is going to happen is bitcoin will dominate the national currency. and the number of people using the bitcoin will spike like hell.

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katteasis (63) · 7 years ago

Well I think it will, and we don't have to wait very long.😀

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sribimalzee (25) · 7 years ago

Definitely Cryptocurrency is going to be adopted as National Currency by most of the counties. Barbados is the first country who has implemented as National currency as I suppose. Even it will not take 10 years. Thank you for steemingIT.

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eduardojoa (48) · 7 years ago

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asifali975 (4) · 7 years ago

good job

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imp.unity (57) · 7 years ago

I think if Amazon starts accepting Ethereum

It's game over for swift, paypal, western union...

Wait- what part of the economy won't be affected?

Whatever the future of the world holds: it's global, technological and casshless...

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jobsande (47) · 7 years ago

where did you hear/get the idea Amazon will accept Eth? I heard how they reserved those domain names but I think it's just because they don't want anyone else opening a website under those urls.

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deepquestions (37) · 7 years ago

Agree bro.

We are in a revolution against the system.
Everyone deserves good health, wealth and a good heart. Who is with crypto??!😊

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thename (46) · 7 years ago

Uruguays Banco de la República just started a CENTRALIZED crypto trial run with 10000 participants.

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1 vote

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gcosteloe (36) · 7 years ago

This is an interesting question but I think you have misinterpreted what these countries are doing. They are planning on adopting blockchain technology to track their own fiat currencies, not a decentralized crypto like BTC, ETH or LTC.

For example, the US will never accept BitCoin for payment of taxes. All income calculations within the US for tax purposes will be calculated in USD and not an alternative, otherwise there is no way to apply incentives/disincentives through the tax system.

One of the real values of fiat is that you can be guaranteed to pay your taxes or employees with it.

Like @inegoveritas says, they may create an equivalent currency that operates via blockchain to increase tracking and collection but they will not adopt one of the currently circulating coins.

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yliac (3) · 7 years ago

Undoubtedly yes, soon smartphones will cost 5 dollars, less than a physical wallet.

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