Can digital currencies really replace traditional money?
Many people who are enthusiastic about the idea of digital currencies will release them from the enslavement of the banks, from the lien of the credit companies.
From this segment, when you send money it passes through 7 hands until it reaches the destination and each destination on the way takes a piece.
I also want no one to touch my money and have control over it, but do I really control it with Blockchain/Tangle technology? The big question is whether I control it?! (the average person)
The answer is right now
- HELL NO!
Only today my friend lost 30 thousand dollars! One of my most popular wallets - MyEtherwallet
I told him wholeheartedly, you will never see your money.
Why?
In coincheck stole $ 500 million, luck is that coincheck law intervenes, in Israel the law does not intervene.
Even if the law were to intervene in Israel in all matters of digital currencies, they probably would not have done much for $ 30,000.
I AM SORRY MAN!
He said he made a copy of his private key and he pasted into his wallet to check something and after 30 minutes the "Hacker" emptied his wallet completely.
30 thousand dollars it can be savings of a person for 3-4 years! Sometimes more.
If such a sum had been stolen from that person's credit card, the money would have returned to its place
How can we let this technology alone manage our lives? The blockchain.
The main problems
There is no way back after something has been sent.
The scale issue will be solved, I don't worry about that.
But when you put a digital asset in your wallet you have to trust someone else, who made the wallet!
Unless you are one of those who knows how to read a code. and make it compile on your own then there is also a danger that you have a keylogger on your computer ..
And how do I know that Ledger nano produces reliable products? Bottom line they are just peoples.
they could make a thing that make privatekeys not randomally (even if the chance is 1 to 1000).
I can lose all my money in a minute.
I'm worried about people sending a certain amount to ETH or BTC to a particular address and forgot to write a letter!
And the money went away. where? Go find the combination of numbers and letters
Try to build a quantum computer it's much much faster. (be careful not to explode)
How I do see digital currencies changing the financial world?
Ok so until they solve this terrible problem,
I say my opinion about digital coins,
What can happen is the "competition" banks.
Competition is a healthy thing, and right now the only competition in value between banks is who gives more expensive interest on a mortgage.
At least we'll have the privilege of telling the bank, I want all my money now and we will not have to store everything under the floor or in our mattress.
Banks will have to compete for the customer's attention.
Another serious problem people are talking about is volatility.
I believe that when there is agreement between countries that you can pay in Bitcoin and you can not compare it to the value of the dollar, but milk costs 0.0000003 Bitcoin and that's it! The issue of volatility will be resolved, trading between Bitcoin and the dollar will be prohibited by law, and I assume they will find a solution to other problems regarding the volatility.
Replace?
Meh, I think it will be a long time before that happens. The thing nobody likes to talk about with digital currencies is... well, to put it simply, no one is spending them as currency for the moment. Everyone is hoarding them. They're not being used as an exchange medium very much.
Now with that said, they are definitely here to stay, and they're going to be one of (key words: one of) the things any investor needs to add to their bag of assets if they want to stay competitive, just like stocks, bonds, and commodity assets.
Ask this question about digital currency replacing standard currency about fifty years in the future and it may result in a very different conversation, but for now... well,
"hodl on just a minute here."
I completely agree with you @patriamreminisci . most people are just stacking and hodling the coins for now. and most are still converting to fiat to buy lambo.....
People in some countries like Argentina, Zimbabwe...may use crypto soon because they don't believe in their current fiat, their government is very bad in control the inflation.
I hadn't thought of that. But wouldn't they all have to agree on a specific crypto, and a specific medium of exchange?
See, that's one of the problems with the liquidity of cryptocurrencies: they're not easily interchangeable, and they're not easily transferable. For instance, if I'm holding 13,000 SMT, and I want to pay you 20 of those, but your wallet doesn't take them, then I can't send money to you. If you're holding BTC and want to try and send them back to me, the same is true (and let's not even get started on the insane transaction fees when using BTC).
The issues you stated are right. They should be of serious concern to everyone who is involved in the blockchain technology. But we also know that this tech is in its infant stage. As we discover challenges from day to day, we'll also rise to bring solutions to them. You wrote a post about two weeks ago and I commented that cyber security should be a thing of serious concern to everyone. Everyone should take a little time to study and understand at least the basic on how to protect his/her self from cyber theft.
I think they won’t replace fiat money for a very long time. BUT there will be parallel economies independent from government’s violence and people will use all sorts of currencies to voluntary trade with each other.
Decentralization cannot be technically stopped (unless you destroy the Internet) so it’s just a matter of time when governments will become obsolete/irrelevant, and perhaps even slowly die out.
Today, money is the cause of most problems. But it is the most important thing that man invented. And it looks like it will not lose its importance in the future.
The physical landscape of the global economy from the marble pillars and giant halls of classical banks to the skyscrapers of modern financial districts has undergone an incredible change over the last century.
Here are the banknotes and the registration money. The dollar rushes in the money. Against the dollar empire, other countries want to strengthen their currencies. In trade, the use of spindle money is being tried. Euro wants to be a rival. The banking system is highly developed. Every day in the world billions of electronic money transfers (EFT) take place. Barter systems are evolving. It is being questioned whether the cash will be replaced by digital money.
According to author John Sladek, "the future will be the same as the past, but much more expensive," according to some scholars.
But if you look at the development of Bitcoin / crypto money, which is the subject of our writing, the history will be watched again. Whether it's paper money or digital money, those who live in it will see it.
Thank you @amiramnoam. I'm glad you shared this. I'm sorry about your friend that was hacked. That is so scary.
I believe it was the Israeli prime minister who said, "Are banks doomed to eventually disappear? The answer is, yes." Banks will need to reform or be replaced. In time the technology will improve to be secure.
I like what you said about volatility. If there is agreement among the nations we can have a stable crypto.
Cryptocurrency is still new, eventually it will evolve more for future
I guess all banks will start improving their services.
Not only that but also I think MasterCard and visa will create a new global blockchain for all transactions.
So, blockchain technology is here to stay and grow.
But cryptocurrencies may still here and may not, that depends on how many problems they solve :D
For example:
Now, bitcoin and all other Crypto are solving the issues of the current financial system about transactions time and cost and having a bank account that's why they became popular, but will these problems stay in the future or not!
But I feel that Cryptocurrencies are going to be more popular in the next 2 years :D
Thank you for sharing this info with us @amiramnoam :)
yes right dude
Not unpegged, volatile assets. Stablecoins on a blockchain could though.
Well, it's too hard to predict these things...
#my2Cents Problem regarding Crypto-Currencies (CC) growth is bad infrastructure. The more things are developed to either accept CC or make usage easier/more understandable the more people will use it.
Imagine if Amazon will accept CC from tomorrow. This one thing will probably give huge growth to CC market.
Problem you described here is quite valid, but if look at history you will see that there always were these kinds of problems when something new came in (Credit Cards/Paypal/etc.)
Obviously there are some good arguments for and against CC... But in general, still, it's too hard to predict how and where this will end up.
I see people paying with smartphones all the time at the grocery store. And then there is the war on cash, so why not? It's just few steps further along.
פוסט מעניין :)
אני חושב שהתרומה הגדולה של הבלוקצ'יין למערכת הבנקאות היא כמו במקרה של הריפל - הבנקים יכולים להשתמש בפרוטוקולים של הלבלוקצ'יין ע"מ לבצע העברות כספים בלי מליון מתווכים שיגזרו עמלה שמנה בדרך, ובתקווה - זה יתגלגל אלינו הצרכנים.
עניין נוסף שעשוי לשפר את המצב שאתה מתאר - במידה ובורסות גדולות יעבדו כמו סוג של "בנק" - תהיה להם מערכת בקרה על טעויות קריטיות בכתובות אליהן שולחים (למשל מישהו ששולח ביטקוין לארנק של אתריום) או שליחה לכתובת שאיננה קיימת, ואחריות מבוטחת על הכספים של האנשים - זה יצריך קבלה רחבה של הקריפטו, זה ברור, אף חברת ביטוח לא תתעסק עם משהו שאיננו ברור מבחינה חוקית.
אני לא בטוח באופן כללי שהקריפטו יחליף את הכסף לחלוטין, אבל לאנשים זהירים יחסית מבחינה פיננסית, ובשילוב של ביטוחים שנקווה שיהיו - נתח השוק הפוטנציאלי של הקריפטו למטרות שונות, כמו למשל העברות בין-לאומיות בעמלה אפסית, יגדל ויגדל.