Quote from: Latviand on February 25, 2019, 11:45:33 AM

Quote from: ulhaq on August 28, 2018, 07:29:55 PM

in the future, will there really be a need for fiat currency? Government can collect taxes in crypto, determine how to allocate it, and spend it in crypto. Ppl can receive salaries and do all commerce using crypto. Loans can be done in crypto. Fundraising can be in crypto. Sure, problems have to be worked out in terms of scalability, does it have to be completely decentralized, etc, the value has to become more stable. But theoretically, is there any reason to have fiat in the future?

It has been established that governments can now do taxation without representation by printing more money (which is a tax on everyone holding the currency), instead of trying to get a bill passed that allows it to increase the tax rate. With crypto this would be no more. All increased taxation would have to pass a vote.

From an economic standpoint, the idea that a country can stimulate its economy by adjusting interest rates is tenuous. There is just as strong an argument that lowering interest rates has caused speculation and bubbles, with calamitous results. In a crypto market economy, capital will flow from where it is needed less to where it is needed more.

I think fiat currency is really necessary in the world because even though cryptocurrency have been recognized by a lot countries. I still believe people will still exchange it to fiat currency because the government only support fiat currency not cryptocurrency.

Agreed, very few countries around the world has been providing users with the legal rights to use cryptocurrency. This ensures the continued usage of fiat currencies all around even when there is more and more people getting into the cryptocurrency usage. Even when cryptocurrency is legalized there will be people who feel convenient with fiat. This surely let's them go with it.