Can cryptocurrency and bitcoins replace Flat Money?
When we talk about money, it does not imply to the personals. But, varies from land to land and nation to nation. As long as the nations and governments are there, Flat currencies will exist! But, as the third phase of the world, New World Order is near cryptocurrency and bitcoins are in more use. Therefore, can Cryptocurrency and Bitcoins replace Flat money? is still a question?
Today, flat currencies exist because of the gold, ultimately failed to meet the demands. Especially, demands of the modern world. On the other hand, Bitcoin is similar to gold. But actually, is worse in the supply and even more constrained. As per the articles of World Economic Forum and Economic times, World Bank is more passive to the use of Digital Currency because of Digitization. As the trade among China, Russia, and South Korea is commencing it will be difficult to know can cryptocurrency and bitcoins replace Flat money?
“One question is more that need an answer. If flat currencies are exiled then how world bank will use Gold reservoirs?”
Bitcoin Price and Questions
Bitcoin does not look like the way it was advertised. It is not cheaper to transmit. It is not easy to use. Still, you don’t believe then try using Bitcoin to buy something and compare it to using a credit card.
Where are your reward points? Your ability to get your money back? If the retailer breaks or doesn’t deliver the merchandise, what about your money? What about your protection against fraud? What if your bitcoin price keys are stolen? Consequently, what about your ability to avoid changing local currency into a volatile cryptocurrency? With all these questions in queue, Can cryptocurrency and bitcoins replace Flat money?
“The present Bitcoin price is $18013.01 and 7 years ago it was $5. But still, bitcoin usage by consumers has not exploded.”
What Bitcoin Supporters say?
Bitcoin boosters are in favor of the use of Bitcoins. They say things will improve over time. Eventually, that is true for flat based payment and transaction systems also. Governments are actively looking at ways for capitalizing coin market cap. Governments of various nations now are in the race to start their own digital currency.
“It looks as if the race to win economy of the world is going on. Subsequently, the one with high digital currency value will win.”
In the end, government controls the flow of money through laws and legal payments means. While in settles debts, legal tender, and taxes. Particularly, with the huge amount of flow of money, it creates a huge captive market. Therefore, coin market cap is necessary. Still, it won’t clear the question whether can cryptocurrency and bitcoins are accessible to everyone.
Furthermore, governments can ban alternative currencies. Particularly limiting their usage to the black market only.
For example, in 1933 the United States, American government forced holders of gold bullion to exchange the gold for banknotes, which were then devalued. All because holding gold became illegal. It was necessary to stop bank failures.
Let us look at the role of currency:
Basically, currency is a unit of permission to consume resources. Actually, in exchange for producing something of value. The currency value rises if economic outputs expand faster than the supply of currency. This is like deflation—falling prices. But let’s see the reverse situation. When economic output falls or the currency supply rises faster than output the currency loses value. This is now inflation. This was the situation when gold backed currencies dominated.
Flat Currencies: Advantages
Flat currencies allow the banks to continuously adjust the supply and needs. To address this problem of supply and need, Flat currencies are theirs. While this is far from perfect. Most importantly, it reduces the suffering from swings in the economy.
Fiat currencies don’t cause social collapse. Instead, the collapse in the currency is by the economic collapse. Furthermore, due to horrible government policies.
Governments always adjust their monetary policies. Thus, increasing the money supply to support their policies. But they never change their goals and policies. As long as governments have the power to enforce laws, they will use that power. Respectively fiat currencies will dominate. What you think Can cryptocurrency and bitcoins dominate flat money?
Now, some argue that cryptocurrencies and Bitcoins virtual nature make it an exception. Because it can neither be seized nor decentralized. Maybe the government can push it forward through their own version of blockchains. But actually, this is not really the case. Because the government can make it very difficult to use such a currency. These would make transacting in such a currency very difficult.
Finally, leading everything to the conclusion:
“Cryptocurrency and Bitcoins will be used but only where there is a social collapse.”
To put it briefly, can cryptocurrency and Bitcoins replace flat money will remain a question. Until unless the government doesn’t push it.