I have been reading posts on here about the value of cryptocurrancies and how it is the money of the future and will replace paper money. I have also been reading online that whilst that might eventually happen it is too far into the future and something that I will proberbly never see in my life time -so what is the truth ?? What am I meant to believe
From what I have been reading Japan has become a fore runner in believing in cryptocurrancies and their government have recognised Bitcoin as legal tender and they have approved a few companies as operators of cryptocurrency exchanges. That being said the Bank of Japan have also said they do not believe that the blockchain that underpins Bitcoin was not mature enough to power the worlds largest payment systems - I have to ask why they have recognised it as legal tender if they don't believe it is mature enough.
I then read another article in which Christine Lagarde head of the International Monetary Fund said that she believes that " for now, virtual Currancies such as Bitcoin pose little or no challenge to the existing order of fiat currencies and central banks because they are too volatile, too risky and too energy intensive and the technologies are not yet scalable. " in the next sentence she said " I think it would be wise not to dismiss virtual Currancies - double talk at its finest ??
I do understand that the banks are scared, Bitcoin will belong to the people and not the banks, that in turn has them worried as they will lose the ability to control the economy. They will no longer be able to print money to help them with their view of what the Economy should look like, they will not control who gets to borrow money and who lends it as it will not be down to one person or companies as Bitcoin will belong to people not banks.
So many conflicting information with so many different views and ideas - all I can do is keep reading and learning and hope that one day I will be in a position to say to my grandchildren " I remember when we used to use paper to buy things "
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That’s not the idea.
What is not the idea ? For Bitcoin or any cryptocurrency to replace paper money ? For it not to be used as a new money ? Sorry I don't understand what you are saying is not the idea @felipehukken
Most goods i use a debit card. That means i aready use very little cash. As for cryptocurrancies it will be more one way to have money to save and spend. Those cryptocurrancies will not be majic but a diffrent way to store value.
I also mainly use a debit card - that is attached to my bank account which in turn receives money from my job - cash - paper money. If I want to withdraw cash I can but my point is it is cash not crypto which is why I was asking the question will crypto replace cash in the future.
I'm not certain, but I think over time, some form of cryptocurrency will replace what we consider paper money. Nearly every major bank has begun to explore the possibility. Most governments are at least talking about cryptocurrencies. It will be interesting to watch over the next few years if the cryptos continue to operate as truly independent currencies or if they are somehow co-opted by governments and banks along the way.
Before someone comes along and says, "Bitcoin can't be co-opted", don't bother. I realize that. But a government could easily start their own currency based on a blockchain and then use that as their only authorized digital currency. I'm certain some governments are already considering it fairly seriously since there are nearly weekly comments out of both Russia and China to that effect. I would surmise, the current governments are just trying to figure out how best to "roll-out" the new currencies in the most effective way for them to maintain control.
Thank you @bigpanda finally an answer I can understand and relate to. Maybe the cryptocurrancies will become legal tender but it seems that each government will want a form of their own currency so in theory it could be like the dollar or pound or yen - one they have control over
Exactly. I think this is what will happen over time.