Will Crypto Ever Replace Fiat Currencies like USD or INR?
If you look at BTC, the first coin in the market coming as a digital currency, it is not a future but a present thing.
These coins are here only to rule the world, and they are doing the same now. It seems a logical point, and people will accept the same. Hence when you plan to buy a new car with the help of these coins like BTC, it is not possible to get one except the companies like Tesla, which allows you to procure the same. You can then think of procuring a smartphone; the answer is again no, and similar is the story with pizzas except the one brought using 10K of coins in 2011 in LA. Thus when you compare it with fiat money which can buy anything, digital currencies are still in the initial stage with limited options to procure. So, now the big question is, will the coin – BTC or any other digital coin will ever replace fiat currency? It is the question we answer here. If you’re interested in learning more about bitcoin trading, go to Tesler for a complete guide.
The Technical Explanation
If you check this debate technically, you can find anything qualifying as money when you get two parties – the sender and receiver agreeing on it. You know this is the basics of the barter system working, and it has remained for years since time immemorial if you remember people getting the rice in exchange for wheat or pulses. We recognize that everything grown on the farm can have its exchange value with another product allowing this system to work and sustain unless you see that everything that comes has to be developed with the same amount. It is also coming along with many more goods and valuable stuff for others. For instance, you can find one liter of petrol that remains too valuable for 1 liter of water. However, as the fiat currency came, it gave the stability to value issues for different products and services.
We can find the generation that comes with the belief that paper currency can lose value and even perish like any other currencies that come in the period. Talking about the concerns, you can find the centralization of fiat currency working in the power of banks and governments coming up with some hard-earned money for the people. As you discover the concerns growing with the currency centralization, we see the emphasis added to the governments and banks that remain tough to earn through the people. We can see digital coins coming as decentralized money in the market after the 2008 financial crisis. A minority of people felt about it as an alternative to fiat currency. They believed that the coins’ popularity would increase with time, and you get good results as you get with paper currency. In reality, it’s a possibility that you can never rule out. Yet you can find too many options with crypto in the market. To make these coins an alternate, you need to address several challenges.
Store value and not money
We see different nations and their governments not accepting digital coins as their mode of payment. A few countries have even banned the coins and are regulating them. Some of them have planned to come up with their coin. If you talk about the nations like India, it plans to impose a crypto ban, and it has even proposed a bill earlier to ban. However, with time, things changed. The Supreme Court kept a bar on the government’s decision to bank the coin. Soon their stance went down, and many were seen talking about it as an outdated option, but people were not willing to accept real money. However, they want to categorize the coin in the asset format, bringing the coin close to assets like real estate properties.
Soon, it was able to bring the government into the picture of how the currency can be printed when there is internal or external pressure. If you find the coins replacing fiat money like USD or INR, you can realize the power of shift change. For instance, if you see Bitcoin coming up with a cap of 21 million, which means that you cannot mint everything in it. You can find 21 million coins globally, and it is impossible to mine them out even if you want them. Besides, you can find some other concerns, and the only idea is to develop and decentralize financial transactions that come along with Bitcoin. Thus, you can find all these transactions even going for illegal acts like evading tax, money laundering, etc.
