Here is a great debate that I just watched between Peter Schiff and Erik Voorhees.
I really think there is a lot of value in watching this video as it displays a few of the areas that Bitcoin and Crypto could fail.
I will put a few of my thoughts about what was said bellow if you are interested. Enjoy :)
On the note of Bitcoin replacing government backed fiat currencies, I think that something of this nature will eventually replace the current system that we use now but these things take time and I can see fiat continuing on for a long time until it eventually dies out by inflation or by unpopularity.
Although fiat currencies could just adopt the blockchain model as it is a more secure way for them to print as much money as they want and have complete control over the money supply.
We can look at countries that are actually doing this now such as Iran is developing their own cryptocurrency that is backed by the Iranian Rial. Iran is doing this to get away from us sections after they pulled out of the nuclear deal. So this is not a theory it is already a reality and we get to watch it play out on a global scale.
Although I'm really not a fan of governments doing this it was almost inevitable to happen.
Now what about the Gold argument??
Peter has said that gold more than ever could be used as money through the use of a medium of exchange and a trusted third party to store and hold the gold safely while it is traded by its equivalent backed currency.
I can definitely see this and I have to admit he has opened my eyes to where gold could also go as well.
I have always been a fan of gold or precious metals purely on the fact that they have value and have been used as money for thousands of years. There is just something about gold that doesn't go away. It will always have value even if it is not used as a currency, as it is used in many different electronics and applications.
I am also a big fan of Robert Kiyosaki who has stated that much of his wealth is in gold. He says that gold is Gods money, its been here since before our time and it will be here when the cockroaches die. Gold is not going away.
So I defiantly see the argument for both sides and this really isn't a question of will something replace the current fiat system we have, but will that be gold or crypto.
I am going to play devils advocate on crypto here for a second.
I have been very bullish on crypto and all the excitement around this crypto space has blinded me to the possible flaws that crypto may have.
For instance crypto is basically fiat in a decentralized manor governed by code and not a government.
Does that really solve the issue that we are trying to fix here?
It truly is not backed by anything other than what people will pay you for it. Bitcoin only has value because other people believe it has value. We can see this in the adoption cycle of Bitcoin as at one point Bitcoin was worth almost nothing, pennies per Bitcoin, now it is much higher.
What does that tell us??
That at one point other people only valued a Bitcoin at a few pennies. That was what gave Bitcoin its value and this is derived from the supply and the demand. No one really wanted to buy Bitcoins (No Demand) and there where tons of them on the market (Supply).
All this is exactly how fiat works, Supply and Demand not backed by anything.
Bitcoin Argument
Bitcoin provides the access to peer to peer transactions without the need for a third party due to the blockchain.
This really is revolutionary as Bitcoin is borderless, decently fast and can be a store of value. Many have called Bitcoin Gold 2.0.
So I think this was the perfect debate and I am pretty sure both sides will continue to survive and thrive in this global economy.
But what does Bitcoin offer that gold doesn't??
Hmmm I really had to think about that for a minute.
Bitcoin offers an easier store of value. Just think about it. It is just as easy to store 1 Bitcoin as it is to store 1,000 Bitcoins. Your phone doesn't get heavier or even charge you more of a storage cost. Where as gold is more difficult to store and more time consuming doing it.
Bitcoin also offers transfer of value no matter the size across the world in very little time where as gold it could take days or weeks.
Bitcoin is fun and this new thing where as gold is old and been around for a while. (This may be a con, idk haha)
Bitcoin is also easily divisible where as gold is usually sold in whole chunks.
Bitcoin is also secure and can't be counterfeited where as gold can and has been faked using cheaper metals.
There is probably a lot I am missing so leave me a comment of any you have for or against Bitcoin/crypto.
I still think Bitcoin will be very successful but it is definitely good to open our eyes to new possibilities.
Thanks for reading and I wish you prosperous crypto years to come. :)