Security backed Virtual currency nice. So what do you have in mind? What kinda securities will these be backed by? Who issues the security and the currency? Also bitcoin can be replaced, it has its flaws that are and will be addressed. But decentralization is core to bitcoin. Without decentralization, the problems it proposes to solve will remain
If you read my posts from pg 1 somewhere youll see why centralization is a problem. Ive touched upon it. Youre not looking at the bigger picture honey
What makes you think at bitcoin won’t inflate? Cryptocurrency is too volatile that’s why it’s not stable to use it as a mainstream currency.
As an Argentinian I say, so true. We're struggling with an increasing inflation from years now, they print money and it devalues, they take loans, it's ughhhhhhh.
For a currency to inflate down, the supply has to be unlimited. But bitcoin has a limited supply and hence is a deflationary currency,
And this is not only with argentina. There are over 20 countries that have zero to negative interest rates amd its very hard to recover from there. So what option di they have? Print more currency and devalue it until the time no one accepts the currency?
Then other cryptocurrencies will appear. Explain Bitcoin Cash, Bitcoin SV. Litecoin, Etheruem, Etheruem Classic, Basic Attention Coin, and the list goes on..
They will. Bitcoin will probably be replaced. But you gotta understand most ppl only know bitcoin as crypto so im taking bitcoin as reference. This isnt about bitcoin vs. Other cryptos. This is about bringing awareness as to why cryptos should replace banks
Firstly we need to know why currency is worth the way it is, not just it’s a piece of paper, it’s a piece of trust backed by the country that issues it, and why does people have trust in the country is usually because of their stability, how prosperous they are, how much natural resources they have, some political relations, and much more. That’s why we have different currencies, and floating currency rates. Healthy inflation 2-4% means that economy is doing well, and this is normal. But it’s not when hyperinflation occurs usually because of factors like political unrest, war, corruption. If you look into this it’s because the lost of trust. That’s why when the government tries to print an unrealistic amount of currency in an attempt to solve issues, it usually backfires as people loses trust. The government and each country’s money authority have to access the amount of currency they should print/ circulate, and it is regulated, until they decide to break the rules. Negative interest rates “given” by banks. Maybe you can think that rental, staff, ATM, all cost money. Why should banks give interest? Where do they come from? If you think about it they are able to give interest when they invest your? money in elsewhere that gives them more return OR loan to other people that needs them. That’s also why fixed deposits gets more interest from the bank, it’s to attract people to keep money in the bank. It’s really very easy, if the banks give negative interest rates, don’t place your money inside ? if you want the added security, accept their terms. Hence, to assume that cryptocurrencies is the miracle answer to all these currency issues is facile. Personally, I feel they could be used to gradually complement the real currency but not a full replacement as yet.
I highly doubt somecoin could replace bitcoin. The rule is the longer the chain the better (Security/Integrity), thus the longest chain prevails. And remember this is programmable money it can have updates were just on version 0.13 not even 1.0 still early phases.
Other coins had nothing to do with the inflation of Bitcoin. Its like you have gold, silver, copper, paladium etc. How about bitcoin forks?? The value is based on the size of the network, even I can fork bitcoin and call it BitcoinABCD but noone would freaking use it or join my network it wont have any value. What's important is what Bitcoin gave us ...it gave us an OPTION. for the last hundreds of years were stuck on these currencies that are controlled and manipulated by the banks and government, we are stuck in one currency. We have no choice before. But now we have, and its free open decentralized cross border cencorship-resistant, transparent currency. Theres no need for bitcoin to rule/win the whole currency game. There are hundreds of cryptos yes.. But guess what, you have the power to choose whatever you want or need..
No. Youre stressing on inflation im just responding to it Yes currency is all about trust. So who would u trust more, the government or the entire population? I hope you do realize Currency devaluations is used by countries to achieve economic policy. Having a weaker currency relative to the rest of the world can help boost exports, shrink trade deficits and reduce the cost of interest payments on its outstanding government debts. So they constantly try to devalue their currency. The problem here is that im looking at macro and youre looking at micro. Cryptos are here to replace the defunct system of fiat currencies that have disappointed us time and again. Lets look at micro now. You know that your spending habits tell us a lot about u right? And the banks know every details of your spending habits. This is bad. With bitcoin this wont happen as the transactions are private. Also, you can remit money cross border faster and cheaper. If merchants accept payment in bitcoins, it gets settles in a couple hours at max as compared to 2-3 days in case of cards. Every transaction made today benefits visa or mastercard, with bitcoin every transaction made will benefit the people. I can go on and on. But u can pm me for an elaborate discussion
Thanks for the overview, but I think that changes have to be done gradually instead of radically. You are not considering the overall changes that is impacting in the environment and society. For me, I agree with Dwyte that it is an OPTION, another CHOICE to choose, and co-existing instead of REPLACEMENT. This is what I can see now, but I can’t say in decades to come. In all, I’m happy with how things have worked centuries with cash, and recent decades electronic transfer such as companies VISA, MasterCard. There are pros, and of coz there are cons to everything. You have only been saying the pros, what about the cons of cryptocurrency?
Cons? For now its sometimes pretty hard to use for a normal person... But that's okay! The internet wasnt so easy at early days as well. Its slow and you even need tl use command line interface just to send an email and wait a freaking day before the recipient recieves it. Another con maybe for others is that Bitcoin uses too much energy., because of mining. Which is a easy target for a "con" since the energy is concentrated at the concept of mining. But if you think of banks printing presses ATMs kiosks they use alot of energy as well they also use human energy to facilitate concern and transactions right? Ofcourse there is always a trade off. You cant make something out of nothing. Technologically wise the mining process is a key part of the system it hinders spam and gives more robustness onto the system.