Governments won't allow this to happen. For real world financial system, legal system of the state need to be able to override transactions. E.g. if transaction was fraudulent you need a way for an authorized human to investigate it and reverse if necessary. Also there needs to be a way to allow courts to garnish or freeze accounts when necessary. Governments won't allow to lose control of financial system. Private currencies were popular in the beginning of 20th century in US but US government made them illigal. Crypto will follow the same fate.
Many governments are considering banning cash. Indian ban on large banknotes was an example. Police can already seize your cash without a warrant. Crypto is more dangerous for government because if financial system shifts to crypto then governments lose control of it.
@init1 taxes aren’t too bad if you hodl (invest) rather than trade. ~15 rather than ~40%. And @dev/null every major exchange already has KYC in place. Governments are going to get their cut by taxing you. That’s not the point. The point is that fiat currencies are subject to the whims of central banks and governments who can freeze, seize, and devalue your funds in an instant. Is this a rampant issue in the US? No, we have the military power to force our endlessly printed Monopoly money on other countries. Elsewhere— Turkey, Venezuela, to name a few—hyperinflation crises and capital controls are very real, life-altering circumstances. Do you really think the US will get to be #1 schoolyard bully forever? Seems unlikely, and that’s really the only thing that backs the dollar.
In the US crypto is not a security, it’s a commodity, and is taxed as such. Don’t confuse crypto for stocks here.
To be fair, it seems like you’re well read on pro-cryptocurrency articles and books. However, I’ve read all the same books and articles and it sounds more like you’re repeating everything you’ve read rather than coming to your own analytical conclusion.
Have you ever worked in finance or have thorough, boots on ground experience in the banking industry? If not, then you have a true bias in your information. Big picture, saying it will decentralize and world governments will lose all of their power is not a logical conclusion.
Digital currency, like credit cards, are only useful when vendors accept them as a form of payment. If you want to “decentralize”, you’d be asking vendors to take dozens upon dozens upon dozens of digital currencies.
In theory, sure it’s possible. In practice, I think it will expand quickly and then quickly contract back towards a centralized model of only a few, powerful, trusted digital currencies.
Government-issued currencies will never die, but taking a Hayek POV, there’s a lot to be desired from central banking systems and their inflation practices, and competing currencies and financial systems can force them to improve while providing previously unavailable opportunities for wealth redistribution.
The maximum tx throughput of Libra is 20x lower than a single credit card network's actual average tx rate, not enough to serve all transactions for a single major convenience store chain, and larger than the combined tx throughput of all decentralized cryptocurrencies.
I strongly believe Libra will be a player in the DAO world. If Libra actually pulls through govt persecution it will let the laziest of ppl use a stable currency across the entire internet. No reentering credit card numbers, or rechecking back account balances, the currency will follow you across the every site
Yes it is the future. But u cant guess in what form the disruption will happen. Cant guess who the winners/losers will look like. What time will it take. Bitcoin looks like the most likely winner, but who knows.