I Believe in More Than One Option
About 100 times a day I see posts where people talk about bitcoin replacing the USD, or fiat in general. In addition to putting banks and many other businesses, out of business. I wanted to address these notions because not only do I not believe they will happen, I don’t want them to. I love bitcoin and other cryptocurrencies, but what I love even more are options. Im not talking about options such as going long or short, but rather the basic idea as a whole.
The way our economies are built today is off of spending, sometimes to an excessive level. Im not only talking about government here, but for regular consumers as well. If the spending stops, the economy shrinks, its as simple as that. It might not always be the case, but without spending at the levels we are today, many people would lose their jobs. I am not saying this is how our economy should be run, just that it is.
Inflationary currencies and the businesses built off the back of them, have their use cases. Taking out loans in inflationary currencies helps growth and also being paid in inflationary currency lets people who are willing and smart, to take advantage of savings. I see bitcoin, like I see the stock market, as a great option in addition to the system we already have in place. While in the past we might have been forced into using inflationary currency for long term savings, now we can use a form of deflationary currency.
By having the options and taking advantage of the options that bitcoin and other cryptocurrencies have given us, we can be rewarded greatly for saving. Everything else in the economy stays the same, except we can be better rewarded for first mover advantage. Bitcoin also has many other benefits and offers options such as potential anonymity/security and ease of movement across borders that other assets in the past had not. These are just more options that we can take advantage of with bitcoin.
Overall , while I do want to see the world change for the better and maybe at some point it will, I don’t see bitcoin destroying everything, but rather giving options to people who have never had them. I may be lucky because I can invest in the stock market and mostly avoid inflation, but the regular person in a third world country can not. I love financial freedom and the basis for financial freedom is having the option to put your money in different places. This is a huge part as to why I love bitcoin.
Thanks to @Elyaque for the badges
BTC will never "take over" the USD. Your analysis is spot on. We don't really want it to or need it to. We just need BTC to become a trusted store of value, by an exponentially increasing number of people, and the price will follow.
Yes my thoughts exactly. Let things run their course and those who want to choose an out can.
The crypo train is too fast than banks. Banks can't be faster than blockchain.
Banks actually can be faster than blockchains. Blockchains are actually less efficient, they offer a trade off between security and efficiency. Banks will maybe use some form of a blockchain, but doubtful it will be one they dont control
I know that bank regulations always stick of how to keep people's fiat money.
Banks will have their own private blockchain. Maybe on Ripple. Maybe not
So, they can't control anything.
Could not agree more. The balance of payments (or rather French), caused USA to abandon the gold peg in the 70's. Result? Much wider adoption of US dollar as a reserve currency. Steem has built-in inflation, Bitcoin does not. But like @calaber24p rightly pointed it - the system flourishes as a whole, when there are choices.
Bitcoin as another option - well put. Let's see until when it will be only an option.
But do we really want it as an only option? I really dont. Were talking about running an economy off a deflationary currency which severely hinders growth. You might not like it, but the capital in capitalism has to come from somewhere and if you dont have banks loaning it out rather than just hording it, economies dont grow.
That is true and I fully agree. Although the economy and it's overall growth should (ideally) not be so dependent so much on the capital part.
BTC will go through some trials by fire for sure.
In life we always have a choice, but the problem is, it is hard to pick one from your choices that is a right one. Same with crypto over fiat money. We have choice to choose but we need to wait for a right time.
I bielive in cryptocurrency and I know, that it save the world)))
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Well its not gonna happen, bitcoin replacing USD, coz you need to have tangible money, and on the other hand, US will not let bitcoin replace USD.
I agree with you on that we have to have options, but I think that looking at the tendency of digitization on every possible level. I'm more for replacing fiat with a slightly different aim than Bitcoin has.