Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: yousufatik20 on October 10, 2018, 09:16:05 PM
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in the future, will there really be a need for fiat currency? Government can collect taxes in crypto, determine how to allocate it, and spend it in crypto. Ppl can receive salaries and do all commerce using crypto. Loans can be done in crypto. Fundraising can be in crypto. Sure, problems have to be worked out in terms of scalability, does it have to be completely decentralized, etc, the value has to become more stable. But theoretically, is there any reason to have fiat in the future?
It has been established that governments can now do taxation without representation by printing more money (which is a tax on everyone holding the currency), instead of trying to get a bill passed that allows it to increase the tax rate. With crypto this would be no more. All increased taxation would have to pass a vote.
From an economic standpoint, the idea that a country can stimulate its economy by adjusting interest rates is tenuous. There is just as strong an argument that lowering interest rates has caused speculation and bubbles, with calamitous results. In a crypto market economy, capital will flow from where it is needed less to where it is needed more.
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I think that it's very unrealistic that Governments will prefer crypto to FIAT because in that way they can't control the inflaction and many other economic things that are essential for political and economic plans. Crypto will gain importante for sure but FIAT will still be the first method of payments in most countries.
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Yeah, fiat money is needed in the world because fiat money is legal money to make transactions. Although crypto later developed and matched the existence of fiat, but in my opinion the digital currency will never replace fiat. Because digital currency values are also still measured from fiat.
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Money is no longer transferred between hands, so at least cash money is not necessary. However, fiat money is still necessary as it is the fabric that binds together corporations, governments and individuals, without it there would be no link between them, and until we have a viable alternative it is necessary.
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in the future, will there really be a need for fiat currency? Government can collect taxes in crypto, determine how to allocate it, and spend it in crypto. Ppl can receive salaries and do all commerce using crypto. Loans can be done in crypto. Fundraising can be in crypto. Sure, problems have to be worked out in terms of scalability, does it have to be completely decentralized, etc, the value has to become more stable. But theoretically, is there any reason to have fiat in the future?
It has been established that governments can now do taxation without representation by printing more money (which is a tax on everyone holding the currency), instead of trying to get a bill passed that allows it to increase the tax rate. With crypto this would be no more. All increased taxation would have to pass a vote.
From an economic standpoint, the idea that a country can stimulate its economy by adjusting interest rates is tenuous. There is just as strong an argument that lowering interest rates has caused speculation and bubbles, with calamitous results. In a crypto market economy, capital will flow from where it is needed less to where it is needed more.
I see the need for fiat years down the road i know that there are a few examples that you list out which does not need fiat to be present in the market. Crypto is decentralize i suppose problems will definitely arise it fiat is totally replace, The big problem is that crypto is too volatile to be use as the one and only currency which is stopping crypto advancement.
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Fiat will be always needed in the future. Crypto seems good for investment and some payment need, but it cannot cover all sectors of finance system. Not all people can be easier to use crypto, in some cases, fiat is still the best choice for payment instrument. Crypto is also hard to control, our country need fiat to guarantee the stability of national finances.