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View Poll Results: Cryptocurrencies will Replace Conventional Money?
Yes 1 25.00%
No 3 75.00%
I don't know 0 0%
Voters: 4. You may not vote on this poll

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  #1  
Old 28th March 2017, 11:36 AM
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Default Cryptocurrencies will Replace Conventional Money?



I was just wondering how many users here know about cryptocurrencies like bitcoin and what is your opinion about them?
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  #2  
Old 28th March 2017, 12:02 PM
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Originally Posted by Alchemist View Post
I was just wondering how many users here know about cryptocurrencies like bitcoin and what is your opinion about them?
I was attracted towards it around 2-3 years back. Its certainly is the future but I feel its right now ahead of time.

1) CryptoCurr. takes away the power of Govt. Control over money matters and it's the single biggest roadblock for anything meaningful to happen with this. Govt. with its current form all around the world will never allow this to become the main mode of currency.

My guess is, we are still away at least 10-15 years from seeing this as main mode of currency. The change which is coming, will not only disrupt the financial systems but it will change the governance and society at large too.
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  #3  
Old 28th March 2017, 06:26 PM
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The technology behind cryptocurrency namely Blockchain could possibly be adopted by mainstream finance world.

Regarding the acceptance of bitcoin or any other cryptocurrency as a replacement for present day currency - This could be far-fetched as of now. There are security concerns as well.
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Old 28th March 2017, 10:06 PM
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It will be like an alternate parallel economy ( just like today's black money) used by people who know how to use it/ exploit it to avoid government interference. Even today very few people are comfortable to use online banking/credit/debit cards and other alternate modes for money transactions. So I doubt bitcoins will replace conventional money.
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  #5  
Old 29th March 2017, 10:36 AM
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Quote:
Originally Posted by nitinku5021a View Post
My guess is, we are still away at least 10-15 years from seeing this as main mode of currency. The change which is coming, will not only disrupt the financial systems but it will change the governance and society at large too.
I wonder for how long the government can stop virtual currencies!

As Victor Hugo said...

Quote:
We resist the invasion of the armies; We cannot resist the invasion of ideas.
Bitcoin may or may not survive in the long term, but blockchain technology has arrived in a big way. Cryptocurrencies will piggyback on the increasing use of blockchain technology.

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Originally Posted by saveinvest View Post
Even today very few people are comfortable to use online banking/credit/debit cards and other alternate modes for money transactions. So I doubt bitcoins will replace conventional money.
It's the case in India. Otherwise in the west and many places in Asia, cards are preferred over cash.

I feel currently the problem with cryptocurrencies is that these are neither easy to understand nor easy to use.

If someone can come out with a cryptocurrency that is easy to use, it will become popular in no time.

A cryptocurrency backed by a national government is a possibility too and could be a huge success worldwide.
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  #6  
Old 29th March 2017, 12:54 PM
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Quote:
Originally Posted by Alchemist View Post
It's the case in India. Otherwise in the west and many places in Asia, cards are preferred over cash.
Totally agree.

There are lots of incentives to use cards - Sign up promotion gifts and various types of rewards to choose from such as cashback, miles or Reward points.

A disciplined person (who doesn't roll-over credit) can use credit cards to his/her advantage and derive benefits out of it actually.
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  #7  
Old 30th March 2017, 09:06 AM
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Quote:
Originally Posted by Alchemist View Post
I wonder for how long the government can stop virtual currencies!

As Victor Hugo said...

Bitcoin may or may not survive in the long term, but blockchain technology has arrived in a big way. Cryptocurrencies will piggyback on the increasing use of blockchain technology.
Agree. Blockchain will disrupt the way we transact (not only financial matter but everything, starting from work collaboration to simple money matters). But and here is the big BUT, I just can't imagine how the government will function in this scenario.

Current form of government => Not profit making institution, survives on inflation and tax.

Future form of government => Profit making institution, with a monopoly by force. (My wild guess)


Quote:
Originally Posted by Alchemist View Post

A cryptocurrency backed by a national government is a possibility too and could be a huge success worldwide.
A single government backing cryptocurrency will create a huge disadvantage for the others, and other countries will be forced to do so but why on the first place any government will back it?
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  #8  
Old 30th March 2017, 10:27 AM
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Originally Posted by nitinku5021a View Post
A single government backing cryptocurrency will create a huge disadvantage for the others, and other countries will be forced to do so but why on the first place any government will back it?
A government that decides to back a crypto currency can create enormous wealth for itself.

We have seen that small countries have benefited a lot by lowering their tax rates.

On face having near-zero tax rates makes little sense for a government, but tax havens are done themself a lot of good by lowering taxes.

In the same manner, small countries can benefit a lot by backing or launching their own crypto currencies. They may lose some control over their monetary policy by backing a crypto currency, but they will get back a lot more from increase in value of that currency.

The country can either corner a big chunk of the currency before making the announcement or pre-mine a new currency and then launch it.

For example, GDP of Cyprus is around $19 billion. The market capitalization of bitcoin is around $17 billion. Both are of comparable scale.
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  #9  
Old 31st March 2017, 05:12 PM
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Quote:
Originally Posted by Alchemist View Post
A government that decides to back a crypto currency can create enormous wealth for itself.

We have seen that small countries have benefited a lot by lowering their tax rates.

On face having near-zero tax rates makes little sense for a government, but tax havens are done themself a lot of good by lowering taxes.

In the same manner, small countries can benefit a lot by backing or launching their own crypto currencies. They may lose some control over their monetary policy by backing a crypto currency, but they will get back a lot more from increase in value of that currency.

The country can either corner a big chunk of the currency before making the announcement or pre-mine a new currency and then launch it.

For example, GDP of Cyprus is around $19 billion. The market capitalization of bitcoin is around $17 billion. Both are of comparable scale.
I am not able to understand how a country will generate revenue for itself to spend. Yes, No tax will attract lot of industries and rich people to bring their investment, but you see, all the transaction will be beyond any regulation and government will have no way to track it. Crypto by nature is anonymous.

Our government earns the money majorly through Taxes and currencies issued (inflation since RBI doesn't pay any interest over any cash we hold in paper). Let us assume that government ask the industries to pay taxes on their transaction, the auditing of accounts will be impossible since there won't be any trackable bank account. How do you see the government will run?

Incase, government runs its own crypto and then makes it illegal to use any other but their, in that case, there is no meaning of creating their crypto which is not anonymous. Already the currency are in electronic forms. What benefit Crypto will bring in this case?
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  #10  
Old 2nd April 2017, 08:09 PM
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The moment crypto currencies look even remotely like becoming mainstream, almost every government in the world will start making it illegal to posses or buy or sell cryptocurrencies. One of the biggest power the government has over it's citizen's is the power to mint fiat currency. Anything that weakens that power is a no-no.
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  #11  
Old 2nd April 2017, 08:19 PM
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Quote:
Originally Posted by stk_chk View Post
The technology behind cryptocurrency namely Blockchain could possibly be adopted by mainstream finance world.
Yeah, it's the latest fad. But it's a fad. I don't see any advantage for them in it. The main problem solved by block chain is to avoid double spend without using a centralised authority. Every use of blockchain can be done in a much simpler way by using centralisation. The financial world makes most of it's money by being the central party. What is the point for them to make everything decentralised. They lose because of the decentralisation. There is stuff like smart contracts which may be of use to them, but not the other stuff.
Quote:
Originally Posted by Alchemist View Post
It's the case in India. Otherwise in the west and many places in Asia, cards are preferred over cash.
Germany is a huge cash economy.
Quote:
Originally Posted by Alchemist View Post
A cryptocurrency backed by a national government is a possibility too and could be a huge success worldwide.
The whole point of the blockchain is to avoid centralisation and not require anyone's backing. Why will a cryptocurrency become a success worldwide just because it's backed by some govt?
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  #12  
Old 3rd April 2017, 10:13 AM
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Quote:
Originally Posted by vinvest View Post
Why will a cryptocurrency become a success worldwide just because it's backed by some govt?
The biggest roadblock that cryptocurrencies are facing is that there aren't enough legal ways to invest in them or use them.

The world has excess liquidity but the liquidity has nowhere to go. If the currencies are legally recognized, a lot of money will flow into them.

Starting April 1st 2017, Japan has recognized digital currencies.

Quote:
New legislation authorizing digital currency as a legal payment method has come into force in Japan.
http://www.rt.com/business/383101-ja...coin-currency/

Big investors/traders/speculators in countries where crypto-currencies are banned, now have an option to put their money in these currencies via Japanese firms.
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