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What about a world without fiat currencies?

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Written by   11
1 month ago

I am new to experimenting with real-world cryptocurrency transactions. But, I had conducted thorough research studies on technologies behind cryptocurrencies.

I understand that blockchain is just one type of distributed ledger. There are innumerable varieties of distributed ledgers.

The distributed ledger technology domain has players who developed block-less distributed ledgers, such as IOTA, that promise almost zero transaction fees.

Web technologies can work on intelligent TCP IP protocols and could produce decentralized processing superior to distributed ledgers. But, those technologies won't be similar to distributed ledgers.

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What about a world without fiat currencies?

I have a silly question in my mind. I wrote it as a comment to a well-articulated story entitled - "The advantages I see in BCH" by @rebeysa85

Have you ever thought about a world without fiat currencies?

The world was original without any currencies. Ancient histories are the proofs. Humans used to trade by exchanging objects. The farmers supplied crops in exchange for clothes from the weavers.

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Can we sustain without fiat currencies?

When I go to the countryside, at least in India and many other countries in Asia, I don't have many places to buy things using credit cards. There is no other option other than buying things using traditional money notes.

Village shops in Asia and Africa don't accept credit card payments

The village shops don't have the facility to trade using cards. Forget about cryptocurrencies.

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Can cryptocurrencies flourish without fiat currencies?

Suppose we demolish all fiat currencies, i.e., there is no dollar, pounds, yen, rupees, etc. There are only cryptocurrencies, such as bitcoin, ethereum, bitcoin cash, etc.

How would you rate a cryptocurrency? How would you show the price list?

Maybe, then a cryptocurrency would be considered as the standard.

How far would it be feasible to lead a life without fiat currencies?

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Both fiat currencies and cryptocurrencies must stay

To have the world of economy survive, both fiat currencies and cryptocurrencies must stay.

Bitcoin would have an undefined value without the existence of fiat currencies.

The real-world assets should nicely be entangled with fiat and cryptocurrencies.

The connection between the digital world and the real world is very important

There also we need a reference or standard. Metals often serve as standards to evaluate the assets. Any new standard may also come.

The value of the digital assets is undefined without the association of any real-world assets.

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The world economy will remain hybrid

I know that most crypto experts would dump this as a junk idea.

Both fiat and cryptocurrencies will stay

Governments may try to control the citizens with central banks-owned hybrid currencies, i.e., partially centralized and partially decentralized.

It may seem unrealistic.

But, it would happen sooner or later.

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Lead Photo by Jason Leung on Unsplash

Cheers! Debesh Choudhury

Join me at OdyseeLinkedInTwitterPublish0x, and Facebook

Text Copyright © 2021 Debesh Choudhury — All Rights Reserved

#cryptocurrency #blockchain #bitcoin #money #technology

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Comments

I disagree with your comments however. I don't think we need fiat currencies at all. To be clear, the world is not ready, yet, to do without fiat. It is too early. But eventually everything will be electronic. And of course, remote areas of the planet will be the last to migrate.

From there, whether the currency is issued as per rules defined in a protocol (crypto) or if it gets issued at the will of some individuals (fiat) will not be a big technical difference. It is a battle between a banking cartel that wants to keep the issuance under their control vs. the people of Earth, who should prefer an honest, mathematically enforced finite supply for their medium of exchange.

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1 month ago

I appreciate your valuable time and detailed comment. In my view, the association of real objects with digital assets might be the key to the value of both.

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1 month ago

Well said!

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1 month ago

For a time recently, we used to pay for stuff exchanging them for another thing, coffee for flour, etc, but that was due to a lack of goods, so, we exchanged what we had and didn't need for something we needed but didn't have. I don't imagine a world without fiat currencies, at least not in my time, as @Porwest said in one of his articles, it's too big of a world to be forced out of the picture just like that and let alone for a type of currency that it's still in diapers. But, that being said, a world where we can use crypto freely would be great, as a support of the others currencies out there. Have a good day my friend!

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1 month ago

I resonate with your viewpoints. The power of cryptocurrencies will vanish if the fiat currencies don't exist. Crypto resides on fiat currencies. Thanks for the reference of @Porwest ... I will view the post.

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1 month ago