Can someone please explain how any of these currencies are viable as actual tender?
I'm an occasional lurker here, and have dabbled in crypto a bit. Got plenty lucky with Rai and IOTA when they surged and got off the train now and just watching.
Anyway, the one thing i am still to understand is how any of these cryptocurrencies in their current state are viable at all? Now before you downvote me hear out my whole question...
So, people on these forums shit on traditional currencies saying their inflationary? Their usesless, people who put their money in dollars are stupid, etc... But that raises 3 questions about crypto's viability itself.
1) How ever could cryptocurrency survive as the opposite? A deflationary currency is one no one will want to spend? I mean if it's going to be worth 10% more next year, who the fuck would spend it... I mean hell, RaiBlocks can be as efficent as anything, but if you can't say with confidence what it will be worth, then who'd use it as currency.
2) That's on the premise that you can keep it deflationary, but I find this bs. Say we get to a point when this surge stops. Anyone with a basic grasp on currency and inflation knows that inflation doesn't happen solely due to "THE US BANKS PRINTING MONEY" as many here claim. The truely greatest cause of inflation is infact Market Power. Bands and unions like OPEC, or SuperMarkets have the power to raise their prices from time to time, as there is no sustained competition. This causes people to buy for more, and reduces currency value. Or, on the flip side, demand. Do you know why a Supreme shirt which has nothing of significant value over other shirts is so expensive? Demand, and it is the other part of creating inflation. When many parties are interested in an item, it drives price, and devalues currency. How would crypto battle this sort of inflation?
3) Are these currencies going to be pegged or something at some point? Sure not to a traditional currency, like Tether which would make it pointless, but to something else like iron or something, idk. Surely there's some plan to controlling it's volatility, but from google I can't find any such thing? Right now in a transaction there's always going to be one side in a transaction which loses, be it the seller or the buyer.
Don't get me wrong, I think blockchain and related technologies have applications, but I feel like this cryptobubble is on the back of a technology which in terms of currency is not very well applicable (in it's current form). Please do answer my 3 questions, as I'm looking for an answer to how this is planned to be implemented.
Thanks for your input in advance.
As someone who has studied economics and currently works in market infrastructure, I have asked this question many times and never received a satisfactory answerPeople won't spend something that rises faster than the rate of inflation, (they will hoard it) Business, companies and industry will never use a currency that is overly volatile Governments will never adopt something that is at the whim of traders, cartels, rogue nations, market manipulators and can't be controlled in times of high inflation or economic crashes
For example Bitcoin by cap is currently approx the 30th largest currency in the world, yet it is highly volatile, subject to market whims, has dipped over 25% several times this year - that would tear any functioning economy to pieces
Currently most coins are unsuitable as any form of national tender
However I think most of this stems from the unfortunate use of the phrase "crypto-currency" and a lack of basic economic understanding on behalf of many users
They are more like assets or shares and operate as such
Blockchain and the tech pioneered by coins will empower our cash and digital payments systems, streamlining them and many of the coins themselves represent the markets speculative value of the companies behind the coins (e.g. like Neo shares or Vechain)
I don't think of cryptos as replacing fiat, think of them more as complimenting the current system, streamlining it and drastically changing the internal systems - from smart contracts to multi-currency/coin phone software, as well as ushering in a new era of blockchain and DL tech in almost every part of our lives
I'm a little drunk and wanted to prove a fulfilling response to your question later, but caaaant wait.
I was with a friend the other day, who is of course into crypto, and he owed me money for a beer, while he was scrambling for his cash I told him to just send me that amount in Litecoin and we'd be good! So on his (Litecoin)wallet he just sent me the $5 he owed me and we called it even, this worked because I obviously value holding the coin despite it's volatility, but it's just a peek into how as long as one views crypto as valuable, it will be.
So wouldn't I be better off if I paid by normal credit card and just kept all of my crypto?
That's what I'm saying in Q1 though, if it were to retain it's deflationary nature, it would be sort of counterintuitive and a loss to use it to buy something (unless the return on the bought item was greater obviously).
Isn't your friend losing money essentially in such a case?
I don't doubt it's ability to have value to people, but on your point about holding despite volatility, for a business, it would be risky holding your liquid assets in something which may go up or down sporadically, unless they instantly convert to traditional which brings us back to square 1.
Well I have never had a credit card that gains value over time. Say you spent 25% of your coins off youe Monaco card, but the coin you hold increased 50% over the next 6 months, you would have more fiat than you started with. These cards will be a daytraders wet dream I promise.
That depends how you invision the future. Personally I believe crypto will take over in the next decade. A project like Monaco, if they get it right after launch, could quite easily be the leader in crypto high street spending. They need people to use the product for it to go global. If you can afford to keep adding to your crypto portfolio whilst not spending any of it, then do that, long term you will make money, but what are you going to do with it? If you are ever going to spend it, then Monaco is lookong the best way.
Sorry, I don't get it? How would it pay itself off if I paid with a "crypto card"
Yeah I’d agree the whole currency thing ain’t gonna happen
Yewwww. Same, perma lurk but just logged in to respond.
Basically heres the deal, this crypto hype will grow like crazy from here. Invest now but don't hold a lot too long. This crypto bubble will pop very soon. And when it does all the shitcoins like BTC, TRN, ADA and LTC will die. It will take out the whole global economy too, so fiat will lose money too.
From the ashes though, the top shit like ETH, ARK, NEO, RAI, IOT will rise. You would be retarded if you donnn't leave holdings in crypto though. Sure when the crash happens you'll lose some, but if you know the good tech like ARK, then it'll rebound as people pour in their fiat into crypto. And when that happens the dollar will go to 0, and crypto will stabilise.
after we can use as currency and make like 1 ARK worth like 1 block of land so that it holds value.
Elaborate please? Isn't it more of a currency exchanger?