Will bitcoin exist with the current financial system? Or will it become a parallel system that coexists like two countries exist side by side? I believe it will be a parallel system? The fiat money will flow from traditional to bitcoin system slowly but surely. We are already seeing some indication of that happening. Around, $7Billions, have already poured into it. It is here because it no longer 100% believes in the USD or any other currency it holds.
I was born in a poor country. During our independence 1USD = 7unit of currency. It got devaluated to such a level that now 1USD = 80 units of currency. We are worst off then we were in the 1990s. Some people have become multi-level rich. It is now one of the fastest rich producing nations, whereas the country is mega poor.
Bitcoin is the future. Does it solve the underlying problems of inequality providing utopia land? Possibly not. However, it solves the constant devaluation of currencies by governments all around the world. The world financial system is built to ensure a specific few groups of people get richer and more prosperous. That stops! Period! Rest will be what off shot applications come out of Bitcoin or Ether etc
If we just for once assume 1btc = $480,000, then we quickly realize the potential of this thing we call bitcoin.
Let's assume 1btc = $480000
We can take 1btc and buy a 2bed apartment in the heart of any significant part of the world. We can take 1bitcoin and start our own business. Bitcoin was never built to allow one to buy groceries. However, if one sees the potential to be able to transact in other places where wait time is not crucial, then one soon realizes that bitcoin has a place that will ultimately change the world. You want to buy a car. Bitcoin likely can do that in the future. You want to buy a home. Bitcoin. You want to start a business. Bitcoin. You want to purchase a yacht. Bitcoin. You want to pay utilities that does not need to be paid instantly (usually you get time to pay those). Bitcoin. You want to pay you credit card bills that give you a few weeks to pay. Bitcoin. You want to pay your vendors that live overseas and don't need payment immediately. Bitcoin. You want to send money back home. Bitcoin. Bitcoin has a future.
Every such transaction will likely be a cheaper and more economic benefit for the party that receives bitcoin. The purchasing power increases over time. And everyone will want to use it. Simple. I do not expect amazon to allow bitcoin. However, I expect bitcoin to be used in other parts of our lives in the next decade
No No! No matter what you or other folks say let me tell you what you are imagining is never going to happen. Bitcoin isn't a magic wand that would take away all your problems with itself. What all you are pointing out can be done in fiat too. What is stopping you from buying a car or yacht from fiat? It's because you don't have money. How are you expecting everyone to have BTC just by default? If you are talking about the problems of income inequality or poverty there is absolutely no connection that Bitcoin has with it. Chances are it would worsen off with cryptocurrencies as there would be no social regimes to pick them up. Bitcoin isn't made for this purpose. It's sole purpose is to transact payments over long distances without any intermediary I think even this value thing that has been attached to it is quite ancillary and not the primary activity. The purchasing power would also not increase because the production won't increase. Because producers too have to do expenditure in order to produce a good. If they can get a better ROI just by holding Bitcoin why would they produce? So imagining such an economy is certainly impossible.