Fiat isn't going anywhere. However, stable fiat currencies will be backed by Bitcoin and/or precious metals in the future once the collapse takes place and once that mess gets sorted out. Centralized payment channels will not be replaced with blockchains simply because of the gargantuan throughput required. Also, there will never be thousands or tens of thousands of currencies around. Utility coins such as HIVE, yes, but not pure value transfer coins. Bitcoin will be the measure of all value, the new reserve currency controlled by no government or central bank.
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Not so sure about that. They removed the gold standard as it was a limitation on their ability to do what they have done. To back it again would be to wipe out an enormous amount of air.
Yep. The gold standard was removed in the 1970's by the Nixon administration because it had become too obvious that the dollar was no longer backed by gold because too many had been printed. The gold standard stands in the way of credit expansion. Now, credit expansion can be a useful thing, which is why it is done. But the result is often what we are seeing now.
Of course it won't be done voluntarily. I trust central banks to keep up their ultra-light monetary policies to the bitter end. What I'm saying is that that particular music will probably end in a catastrophe at some point in the future. The debt levels will be so high that a great reset becomes inevitable because the purchasing power of the currency will be debased. Debt grows exponentially.
When the crash happens, all savers will naturally gravitate towards assets that actually work as stores of value: gold and Bitcoin.
Useful until the debt cycle becomes unmanageable.
Yes, and doing so hamstrings the centralized currencies as the "backers" will be the people who own the gold and bitcoin. With governments already having a fair bit of gold, perhaps more people will opt into bitcoin.
Bitcoin is digital gold. What makes gold valuable apart from the established network effects on the demand side is the fact that it is expensive to mine and that its supply is very inelastic (= high stock-to-flow ratio). The very same thing makes Bitcoin valuable as a store of value asset. Bitcoin does not need to scale or become a payment system to be valuable. Gold is easy to confiscate and much more difficult to transfer or to be used for paying for anything. Bitcoin is gold for the digital era.
Yeah I agree, Bitcoin/crypto is far more secure in many ways and can move easily across borders. Would have been an interesting difference if it was the store of wealth 80 years ago - quite a different story.
Absolutely.