Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: yousufatik on November 19, 2018, 10:11:01 AM
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There are some believes that we might not necessary need fiat currency in trading cryptocurrencies.
My question now is If Fiat is completely irrelevant in the world, and gold do not back crypto, where will cryptocurrency derive it value from?
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Most stores do not accept crypto currencies. At some point you need to convert crypto into fiat in order to buy the stuff you need from such a place.
And mostly fiat is the currency you need when you buy crypto in the first place.
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Fiat is only relevant because it is something imposed by governments, most people want some kind of security, not the freedom that the cryptos offer, and that makes them comfortable, and even complaining about the system they do not know that they are themselves has the power to change. It's still a long time before the cryptos have due recognition from the mainstream.
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Fiat currency is not completely irrelevant in Cryptocurrency as you get to purchase Cryptocurrency with Fiat before you are able to trade or transact on the Cryptocurrency space.
There's no way of getting into Cryptocurrency without having to pass through Fiat currency for new investors/traders.
Old investors cannot be able to use their Cryptocurrency to purchase things without first converting to Fiat.
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Fiat is relevant to cryptocurrency because fiat is the currency we are forced to use to live.
Mostly, we need fiat for buying groceries, paying taxes etc. There are a small number of places allowing crypto payments for goods and services, but they are a tiny section of the economy.
If you are investing in cryptocurrency to HODL for the future adoption on a global scale, then fiat is only a general benchmark (people will still need paying a livable wage to provide goods and services)
If you are investing to make a profit in "now" terms, then you have to equate crypto value to fiat worth, because fiat is the only option for using that profit.