Post
Topic
Board Economics
Re: Bitcoin can not replace fiat
by
zombie6
on 19/12/2017, 13:12:15 UTC
Yes, got you intrigued, didn't it?

Bitcoin is a very good thing to have as an asset. Just like gold. Even better if I may say. It's secure, and unlike fiat money it actually exists and work is put into it to produce it. This makes it great to store value.
However, it cannot and will not replace current fiat money that the entire world it using. It just cannot.
Take paying a cup of coffee for example. To pay your coffee with bitcoins, one must get bitcoins first, either by mining or buying bitcoins with other kinds of money (*cough*fiat*cough). It ends up being a quite complicated process, don't you think?
Until we reach the point where paying for a cup of coffee is as easy with Bitcoin as it is with cash, we will never get mass adoption. And as far as I see it, there is no way of simplifying the acquiring of bitcoins.
Bitcoin is by nature deflationary! and Fiat by its nature is inflationary, it is more profitable for you to spend money than simply to save them because they become cheaper! or their price remains the same! on this in fact, and builds the economy, on inflation! if no one will spend money then there will be no liquidity and this is very bad!