Can someone give me a really compelling reason to think crypto would ever overtake a fiat currency?

Better.com / Eng
Stanford🌲

Go to company page Better.com Eng

Stanford🌲
Nov 27, 2021 35 Comments

It just doesn’t make sense to me.

The USD has value because the US government demands taxes in and pays its debt obligations out in USD.

The US government is important because everyone that lives within the physical borders of US territory is under its jurisdiction and has to comply with its laws.

The currency is tied to the physical hard power that the US government exerts / political and legal structure it provides.

I guess crypto makes sense in an anarchy devoid of political structure but it sounds like facilitation of exchange is probably going to be one of many problems you’d have at that point.

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TOP 35 Comments
  • Apple
    sheb62

    Go to company page Apple

    sheb62
    1. The US isn’t the only country in this planet.
    2. If folks start exhibiting a strong preference for crypto over fiat, rules may just have to change.
    3. Even if governments can enforce some rules at a physical level, it’s possible there will simply be a parallel economy operating on crypto, similarly to what happens with unlaundered money today.
    Nov 27, 2021 8
    • Apple
      sheb62

      Go to company page Apple

      sheb62
      Volatility won’t necessarily always be an issue, as crypto evolves. Keep in mind fiat currencies have inflation, and folks may prefer small forex fees and taxes to using money that inherently loses value by the day. They don’t now because inflation has not been too bad over the last few decades, and because they lack economic understanding. I do think eventually things will change; current fiat money is poorly designed, and it will lead to an economic crisis eventually. You could argue we’re already seeing it, with all the QE excesses.
      Nov 27, 2021
    • New / Eng
      JyTb84

      New Eng

      PRE
      Uber, Chronosphere
      JyTb84
      Dawg u tryna work on some web3 infra
      Nov 27, 2021
  • Google
    MSst11

    Go to company page Google

    MSst11
    Crypto is a joke as a medium of payment. If it was useful, it wouldn’t be as sexy. Its uselessness is its draw for speculators who can pontificate all day long on its future “potential”, unfortunately.
    Nov 27, 2021 1
    • Better.com / Eng
      Stanford🌲

      Go to company page Better.com Eng

      Stanford🌲
      OP
      Yeah honestly given all the coin hustlers it just leaves a really shitty taste in my mouth.

      Real solutions blend into the background - they’re not super loud.
      Nov 27, 2021
  • It’s a bubble. For speculation. Not as a store of value.
    Nov 27, 2021 1
  • New / R&D
    Psynaptic

    New R&D

    PRE
    Neuralink
    BIO
    Working on Brain Machine Interfaces at Neuralink
    Psynaptic
    If you believe inflation happens, then by definition you've just admitted the price of crypto (the non-inflationary ones) will go up relative to fiat even if they don't replace fiat.

    So if that's not what you mean by overtaking, then you gotta define better what you mean by overtake.
    Nov 27, 2021 5
    • JPMorgan Chase / Mgmt
      JstPllMtng

      Go to company page JPMorgan Chase Mgmt

      JstPllMtng
      All those features will be available when countries start launching their own government backed crypto.

      What I don’t understand is why people think there will be a better fx rate between an official crypto usd and bitcoin…
      Nov 27, 2021
    • New / R&D
      Psynaptic

      New R&D

      PRE
      Neuralink
      BIO
      Working on Brain Machine Interfaces at Neuralink
      Psynaptic
      Yes, government backed crypto is still a crypto, its a Blockchain tech, and that can replace fiat as well.

      The reason they think that is that governments which have the power to print money, by game theory analysis, will tend to keep printing more and more. This is fundamentally different than the flagship cryptos which have rules built into the algorithm to prevent that value siphoning away from present holders.

      This mechanism is important and is why many investors care so much and have legal terms about anti-dilution for shares. Unfortunately for us, the government can dilute our USD whenever they like and we just have to accept it.
      Nov 27, 2021
  • Apple
    wuzzz 🧑‍🎤

    Go to company page Apple

    wuzzz 🧑‍🎤
    I only use crypto for buying drugs
    Nov 27, 2021 0