Firstly we need to ask ourselves this question... Which came first between "Fiat currency and Cryptos"? As we can see, I am sure you answered correctly that Fiat currency came first before cryptos. The first ever cryptocurrency which is Bitcoin was discovered by an anonymous person named Nakomanto Satoshi in the year 2008. This implies that humans had been transacting with Fiat currency even before the existence of Bitcoin. The sad reality about this is that most people don't actually trust or believe in cryptocurrency when compared with Fiat currency.
Currency is also a major sign of nationalism while crypto is a currency that intends to unite the world such that everyone can transact, buy things and make payments irrespective of where they are with the same value or worth of crypto. This is why crypto is very unique because the price will always be the same around the world if it falls or rises. This is the major reason some government aren't really in support of cryptos thinking it may affect their financial economy.
I strongly believe there will come a time whereby crypto will widely be used around the world just like Fiat currency. It just a matter of time and government agreement about their perception towards the view of cryptos.
Thanks for reading and I hope this helps.
Because it is volatile. Those that use cryptocurrency do business still convert it to fiat asap to avoid making loss.
After the emergence of Bitcoin in 2008, the cryptocurrency gained a large number of believers. These people believe that this decentralized currency may be a powerful tool against the uneven wealth. Nowadays, the advantages of cryptocurrency have been greatly elicited, and people are looking forward to the success of this "revolution." However, if Bitcoin or any other cryptocurrency really replaces fiat money, have proponents seriously considered what will happen.
The answer is that this wealth inequality will not disappear.
The basic use of money in contemporary society is as a debt record, and cryptocurrency advocates seem to think that this is not worth mentioning. To be frank, unless the economic psychology changes, even if the cryptocurrency replaces the fiat currency, the current financial structure will not change.
Of course, cryptocurrencies may reduce transaction delays and reduce transaction costs, enabling P2P transactions, but this does not have any effect on how the financial system works, because financial concepts such as interest and debt are already deeply rooted in people's minds.
No matter how it develops, there will always be some entities that hold more money than others, whether it is legal cash or cryptocurrency. And those wealthier entities use their own funds to extract value from entities with less capital. In other words, if we are already living in a world that uses cryptocurrencies, people may still borrow money to buy a house and fall into the infinite loop of interest and debt.
Advocates of cryptocurrencies believe that decentralized digital currencies can help people bypass existing corrupt financial institutions, but they ignore the fact that bonds and other concepts are not tied to exchange media (currency, checks, etc.). And there is. Therefore, no matter what kind of exchange medium, the economic business operates in the same way.
In order to promote the development of the encryption economy, centralized financial institutions will inevitably appear as if they are necessary to maintain the development of the contemporary legal currency economy. In a financial system centered on bond debt, people can only accept this reality.
Furthermore, while cryptocurrencies can increase transaction transparency, is this important to us? The way large financial institutions obtain value from available capital is first to use this capital to earn interest, and secondly to allocate capital to maximize benefits, such as paying workers less than the wages they create. Exposing and transparentizing all of this information not only does not change the structure of interest and capital utilization, but also violates personal privacy.
Objectively speaking, cryptocurrencies do reduce fraud. However, when it comes to the corruption of large financial institutions, people tend to pay attention to the illegal behavior of individuals, and the institution can still continue to earn money in accordance with the law.
The polarization of capitalists and workers will still exist in the world of encryption.
Just as in a legal currency-based economy, wealthier groups employ (that is, extract value) as poor people, and this practice is prevalent in the world of encryption. The cryptocurrency will neither rebalance the capitalist and socialist scales nor increase the mobility of society.
Fans of cryptocurrency only see the advantages of the encryption economy, but rarely think about the inherent nature of the monetary system based on creditor's rights and debts from the perspective of anthropology or economics, and this is the key to gaining benefits.
Unless we put aside this kind of creditor-based economics that has existed for thousands of years, there is no point in replacing cryptocurrency with legal currency.
I believe it can and will in some instances. Crypto currencies are still a new technology and it hasn't been accepted through mass adoption yet. There are a lot on negatives around at the moment and that is raised due to the fear factor of change.
For crypto to replace money as we know it thee are a few things that need to happen first. The security issue needs to be improved as there is a risk involved and people don't like risk. The Governments need to accept crypto as a form of payment and I know they will add their regulations concerning it.
Crypto is an instant payment method with little or no fees so for trade between companies in different parts of the world there are huge benefits and savings to be had. The block chain revolution is happening at a fast rate at the moment as companies are buying into it.
I can see the tipping scale where the amount of crypto being used on a daily basis outweighs the money exchanges as we know it. This could happen within the next 5 to 10 years as it becomes more popular. The issue at the moment is that crypto is very unstable and needs to stabalize as a proper source of holding value. The risk is still there at the moment and it needs to to gain stability. Once stability is reached we will see it become widespread.