Does Bitcoin have the potential to replace fiat?

[Slow1357]

Bitcoin is gaining traction again after surpassing its previous all time high of $20k USD back in the bull run of 2017. It is currently valued at $45.7k at the time of this post.

The current bull run is different than the last one in how there are now billion dollar financial institutions such as MicroStrategy and Greyscale investing millions/billions of dollars in Bitcoin.

These investors are taking Bitcoin and holding it, making the available supply on exchanges less. As the demand for Bitcoin increases and the supply decreases, it results in sudden spikes in price. However, Bitcoin has not “crashed” after showing growth in such a short amount of time. It reaches a new ATH and consolidates along newly established support levels. This is further proof that Bitcoin’s median price increases with every cycle. Despite having major dips over the years, there was always an upward trend in its price.

https://www.binance.com/en/trade/BTC_BUSD

What’s so special about Bitcoin? Why are investors rushing to have a position in it?
 

This video briefly explains how BTC works, and how it differs from fiat currency and gold. The main advantage BTC has over fiat is that it cannot be manipulated by a centralized party (ie: the government) and that it does not depreciate over time, as opposed to fiat money that has an average inflation rate of 2%. People who leave their money in their bank account don’t realize that it loses purchasing power over time.

These institutions see the potential Bitcoin has here, and are allocating a significant amount of their money to BTC as a hedge against inflation, other assets etc.

The waves of retail investors have not appeared yet, but as Bitcoin approaches new all time highs, a domino effect happening becomes sooner than later.

Do you think Bitcoin has the potential to become a globally accepted and adopted currency? Do you think it doesn’t have a chance and is just a trend with no real substance? Let’s discuss.

[Dubbeledraaideur [NL]]

Bitcoins are so valuable, that someone with a normal paycheck cannot buy 1 full bitcoin. They only can buy a part of it.
So I don't think bitcoins will be replacing the current currencies in the world.

But as more companies are accepting bitcoins, as a valid currency. I think that bitcoin will / is already accepted as a new currency. 
Also in Europe you can get taxed for your bitcoin profit. 

[Nicоlás]

Thank you for taking the time and effort to provide this information, it may be helpful to many people. 

[Slow1357]

39 minutes ago, Dubbeledraaideur [NL] said:

Bitcoins are so valuable, that someone with a normal paycheck cannot buy 1 full bitcoin. They only can buy a part of it.
So I don't think bitcoins will be replacing the current currencies in the world.

But as more companies are accepting bitcoins, as a valid currency. I think that bitcoin will / is already accepted as a new currency. 
Also in Europe you can get taxed for your bitcoin profit. 

That's what I think as well.

Bitcoin is too slow to replace fiat though. Unless there is a way to do the major optimizations to the system. Bitcoin can only handle something like 100 transactions a second while in the world there are tens / hundreds of thousands of transactions a second. There are other much more optimized crypto currencies. Perhaps in the future there will be something like Ripple or Ethereum for day to day transactions and bitcoin for your savings, who knows. 

[Jayesk]

Why invest though? Some people have some good reasons but we don't want this to turn into 2008 where people are putting every penny into some internet currency, gotta admit, I'm not the wisest in investing but some relatives have made 6k iirc from investing into Royal Mail before it was privatized.

[Owen.]

This is an interesting one for sure, I myself don't have a lot of knowledge on cryptocurrencies but what we have seen following Bitcoins 'hype' phase is the creation of services where you can purchase things online with bitcoins. This is a possible example of how Bitcoin will be slowly implemented into our world as a proper currency. However, I do have high doubts it'll even reach that stage, governments are very aware of bitcoins potential risks, especially with the fact it cannot be traced so could be used for criminal activities etc. I would argue that it'll always be around and be used but I have high doubts it'll ever represent an accepted currency. Unless of course we all become cyborgs and have to use a crypto currency

[Slow1357]

3 hours ago, Owen. said:

This is an interesting one for sure, I myself don't have a lot of knowledge on cryptocurrencies but what we have seen following Bitcoins 'hype' phase is the creation of services where you can purchase things online with bitcoins. This is a possible example of how Bitcoin will be slowly implemented into our world as a proper currency. However, I do have high doubts it'll even reach that stage, governments are very aware of bitcoins potential risks, especially with the fact it cannot be traced so could be used for criminal activities etc. I would argue that it'll always be around and be used but I have high doubts it'll ever represent an accepted currency. Unless of course we all become cyborgs and have to use a crypto currency

While blockchain technology shows great promise, Bitcoin itself is the 21st century equivalent of the Tulip Mania, even my grandfather knows about cryptocurrencies. In other words, Bitcoin might be in a bubble.

If we ignore crypto speculators, Bitcoin is a niche market mostly populated by gamblers, criminals and darkweb psychos. They aim to buy and sell in Bitcoin, hoping to remain anonymous in transactions. But Bitcoin fails at this too: it fails to protect them as many arrests have shown in the past. So the cryptocurrency doesn't even provide a good service for it's main market. Monero could be a better alternative for them, but it remains to be seen too.

Bitcoin's only saving grace is that it has been used in countries with failing currencies like Venezuela.

Besides, it is needlessly complicated. If you're a regular guy who wants to buy something online without revealing identity, it's easier to get a prepaid gift card at local supermarket or grocery store. It's way easier than learning about cryptocurrency exchanges, crypto wallets, and it's more comfortable than contacting cypto dealers online who probably do business with criminals.

Bitcoin cannot function as a currency. Its price fluctuates widely and it's not stable enough. Imagine the poor sap who bought Bitcoin at $20.000 during its previous peak, only to see it crash below $4.000 in value before he had to reuse the funds. Inflation rate of 2% is nothing compared to that.

Crypto speculators can earn money, yes, but it's nothing more than gambling.

Also, governments will never give up their ability to manipulate interest rates through quantitative easing ("printing money out of thin air"). Such loose monetary policy allows them to postpone the crash and to postpone necessary changes on the market. It's an amazing political tool. The cronies who are close to the newly printed money can spend it at original value while the rest of us have to pay the inflation tax.

Unless the government ban the Internet, they can't really ban and take control of crypto. Though they could try stop shops accepting it. Governments definitely will try to restrict it so they can maintain their control.

Also robberies will be much easier than before, no need any violence just hop into their system, take 'em all and leave, easy peasy.

[Guest]

On 2/10/2021 at 5:25 PM, Dopaa said:

Bitcoin is gaining traction again after surpassing its previous all time high of $20k USD back in the bull run of 2017. It is currently valued at $45.7k at the time of this post.

The current bull run is different than the last one in how there are now billion dollar financial institutions such as MicroStrategy and Greyscale investing millions/billions of dollars in Bitcoin.

These investors are taking Bitcoin and holding it, making the available supply on exchanges less. As the demand for Bitcoin increases and the supply decreases, it results in sudden spikes in price. However, Bitcoin has not “crashed” after showing growth in such a short amount of time. It reaches a new ATH and consolidates along newly established support levels. This is further proof that Bitcoin’s median price increases with every cycle. Despite having major dips over the years, there was always an upward trend in its price.

https://www.binance.com/en/trade/BTC_BUSD

What’s so special about Bitcoin? Why are investors rushing to have a position in it?
 

This video briefly explains how BTC works, and how it differs from fiat currency and gold. The main advantage BTC has over fiat is that it cannot be manipulated by a centralized party (ie: the government) and that it does not depreciate over time, as opposed to fiat money that has an average inflation rate of 2%. People who leave their money in their bank account don’t realize that it loses purchasing power over time.

These institutions see the potential Bitcoin has here, and are allocating a significant amount of their money to BTC as a hedge against inflation, other assets etc.

The waves of retail investors have not appeared yet, but as Bitcoin approaches new all time highs, a domino effect happening becomes sooner than later.

Do you think Bitcoin has the potential to become a globally accepted and adopted currency? Do you think it doesn’t have a chance and is just a trend with no real substance? Let’s discuss.

Ty This is  İnteresting

[Snap Dragon]

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