I don't think cryptocurrency (like bitcoin) will ever replace the dollar ... but then I didn't think homosexual-marriage would ever be legal! If it does, will the U.S. Legislature step in and 'make it the official currence of the United States' (like I think the U.S. Constitution says it has the right)? Does the Legislature have a process for that? What'll have to happen before they make such a reality-warping decision
I think that it never will replace the dollar... Cryptocurrencies entierly based on internet and computers. Dollar is also in a large way based on internet, but you have the opportunity to use a regular dollar bill. Another thing is that these crypto-exchange services were hacked once in a while, and a lot of people lost their money. I generally think this is not the way our monetary system will go...
There are lots of reasons why Cryptocurrencies never will replace dollars in the U.S. Among other things the government wouldn't be in control of the money. Those who control the money, govern the nation either directly or indirectly. Would the fate of the U.S be entrusted to some unknown people in cyberspace? Not likely. ] And then there's the question of volatility. The value of Crytpocurrencies can, as it has done in the past, drop by over 50%. What would follow if people lost half their money overnight? An economic worse than the great depression and all other recessions put together.
This doesn't even have to become a question or a ponderance because it's not going to happen. Literally nothing would make this change occur, save for the country falling into a deep, deep recession with hyperinflation. It's not going to happen in the next hundred years, and BitCoin might not even last long enough for such a move to become necessary. Most governments aren't going to take the bold move of moving to a decentralized currency that can't be controlled.
The Bitcoin is the most popular cryptocurrency for now with a value of almost $300 for one unit. I still cannot comprehend the concept of this currency because unlike real money where a Central Bank regulates and guarantees the value, Bitcoin has no such thing. And who would really benefit from its value but the originators?
Uh, how about all of the people that own BitCoin? People, including myself, invest in BitCoin and move it around in order to increase our value/gains. It's like any other investment that isn't controlled by a single entity, and more than the originators can make money from it. I buy and sell BitCoin every few days, and I see modest gains on a regular basis. It's not that hard to understand either. It's a digital currency that works similarly to a stock in some ways.
You are right. The Bitcoin is like a stock but a stock has some visibility like having a reason why it costs that much per share. With the Bitcoin, my question is who handles the backing of the currency. That's why I mentioned Central Bank because without the Central Bank, the money is just plain paper and has no value.
Cryptocurrency is a disruptive currency just like the computer before the digital age. With the adoption of the technology by more and more people, there will be a paradigm shift in thinking patterns even in government circles. Things are generally evolving towards the digital super highway and it will only be a matter of time before the dollar goes south or adjusts to bitcoin as bitcoin dollars.
As long as the dollar keeps its prominently relevant share over foreign currency exchange market, something like that would not happen. But also, it does not serve any purpose? For what you want to replace $$ anyway? Is not like you're forced to use dollar currency anyway. you're free to use any currency you want.
