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Crypto as national currency
#1
Hi,

What will it take for cryptos to be accepted and adopted as e.g. a national currency?

What role will the banks have?
What changes - if any - will have to be made to the national  crypto compared to todays cryptos?
How do we ensure the stability of that crypto, i.e. how do we make sure a kg. of potatos doesn't rise or fall dramatically?

Please comment.
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#2
On Iceland they had a major financial crisis from around 2008-2011 and the trust in the banks vent down to zero. "Some" launched a crypto coin https://en.wikipedia.org/wiki/Auroracoin as a replacement for the Icelandic Kroner. It was never a success.

Bitcoin was launched in 2009 as a response to the corrupt financial system. As we can see now it has massive adoption around the world.

I don't think crypto will become a national currency, but the majority of citizen could use a crypto as replacement for the official fiat currency in a country. For that to happen a financial crisis with inflation and massive unemployment would set a perfect scenario for crypto to take over. Remember crypto can not be produced by the click of a button like fiat, but has to follow the mathematical rules set for the crypto. You know how many there are and how many will come at any time.

What is the purpose of banks? The primary purpose is to allow the government to survey the flow of money and to lend out money to the people. So in short banks are used for controlling the people. The banks know your spending and even it's not yet allowed they could use the information to profile you as a citizen. (The government probably have the profile of you already)

In a crypto senario the banks have no role to play. They are not needed. You are your own bank. If you need crypto you will be able to lend crypto via new blockchain services where users can lend out crypto for an interest like the banks, but cheaper for you. You would need to be validated via identity check on a blockchain that also will have some kind of risk profile for lending you crypto.

I think we need more comment before going further because the above scenario is quite unlikely to happen. The government has to interfere to regain control over the money flow. How they will do it is hard to say, but a potential citizen war could occur.

It's pretty sure the current financial system has to break down. USA is always on the edge of financial collapse and have a debt so freaking high they never will be able to pay back. If China makes a demand for USA to pay we will probably see a huge global crises and maybe even a world war.

I'm just thinking from the top of my head. Please comment.
Cardano is the most promising 3 gen. crypto right now.


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#3
Hi Carsten.

An interesting view, but the most interesting is your implicit reply.

I agree that the banks are the main problem, and there should be no need for them. i also agrre that the current monetary system has failed big time, and is doomed to collapse. But basically what you write is: If we go back to the gold standard and leave everything else to the private initiative/enterprise, then the world would be a better place. You don't address the two biggest problems with cryptos: Total anonymity and lack of intrisic value.

The lack of intrisic value is easily fixed by using algorithms.

The banks became in power because they where printing the money, and everybody - including goverments - had to borrow money from the banks. Here is an intresting paradox: If you have a closed society where the goverment need 1.000.000 money to send into circulation, they will have to go to the banks and borrow the money. If the interest is 1%, then they have to pay back 1.000.100 money. Where do they get the 1.000 money they lack? The society only have 1.000.000 money!!? Today the goverments get it from the citizen, but where do they get the money from? How can this be addressed using cryptos?

The old gold stanstard ensured that there was only a limited amount of money in the system, the same as with cryptos, i.e. a limited amount of coins. One of the reasons why the gold standard was abbandoned, was that there was not enough money, because a few people was sitting on too much money, i.e. not enough money in circulation. How do we make sure this is not repeated with cryptos?

As you can see, I don't believe in replacing one rotten system with another potential rotten system. Let's make cryptos the peoples money, and let's find a way to keep cryptos the peoples money, and not the money of a small elite who use the coins to stay in power.

To everyone in here: Please let me know is a discussion of this kind is to boring in this community - Rimbit - and you are just in it for some fast and easy money. Nothing wrong with that, as long as you are staying within the laws and do cpmplain if you lose money. I wish you all could have a big yacht, a big house, a Limo and appartments in every Capitol in world.
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#4
Good you agree with most of it. Big Grin

Regarding the intrinsic value!

What is gold? Why does anyone want to buy it? What are they using to pay for the gold?

What is crypto? Why does anyone want to buy it? That question is just as valid.

What you are asking is how does a financial system work?

Regarding gold you could argue it is bought because of some electric properties. Copper is a better conductor so it's not the reason for buying gold. Gold is used for rings and jewelry because people find it "beautiful" and gold does not interact with our bodies. Gold therefore has a practical use.
The gold price is controlled only by request and demand. If no one wanted to buy gold it would become worthless.

With crypto the same principle applies. Crypto is transparent since it's decentralized and open. Crypto is secure, fast and easy to use. That is why people want to buy it.

Why do we have money? You know the answer. It's something we agreed to use as a standard to measure the value of work. It's for convenience since paying a favor with cows or chickens simply is not very practical.

Regarding anonymity. Yes crypto can be used to pay criminals. So can fiat currency, but you have to bring the physical money to pay if you want to stay under the radar. Crypto is simply more practical since you can send it anonymously. Does it make crypto bad? No, but it makes it harder to figure out who got what. It's a long discussion but in short you have to change wallet address all the time if you want total anonymity. Most have the same wallet address and if you buy goods for it and have it sent to your physical address you are no longer anonymous.


It's an interesting discussion Allan and I'm sure the few active ones in here find it interesting.
Cardano is the most promising 3 gen. crypto right now.


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#5
Cryptos have some unique properties, which makes me sure that it is the currency of the future. There is a limited amount of coins, which put restrains on the spending of a goverment. The exchange between people is easy and 'free'. If we remove the anomity, then the system is 100% transparant. Cryptos are based om algorithms and exchanged using algorithms, which makes it easy to give it a relevant intrisic value by applying a 'good' algorithm. It would be easy to change all the different currencies in the world, into one worldwide crypto, which will ease world trade and even out some of the unjust differencies in the world. So the question is not if cryptos can replace the current system. The question is how cryptos can change the world, and - most important - how the 'new' world shall look like.
If we just replace the current monetary system with cryptos, then we will get m ore of the same. Do we want that?

Maybe some of you are asking "Why the f... is Allan in this forum? Is he on a idealistic quest or is he a naive communist who is pissed because you make some easy money?". The answer is that I believe in cryptos, and I believe we have a chance to turn some fucked up things around in this world. We have the chance to take back the power and lose the fear of not having enough money (The fear of not having enough money is imposed on us by the banks, and it is keeping us occupied while the elite is expanding and consolidating their power). But what I see is that people are using cryptos to get a smeel of what it is like to be rich, while the elite is making plans to take over the cryptos and maintain power. Instead of speculating in cryptos and making spreadsheets that can tell the realtime value of your portefolio, we should make prepare ourselves and not let the banks take over - again!!
Come up with a crypto which cannot(!) be used for speculation. Make a manifest or constitution (Grundlov) on how cryptos shall take over and make a real change. Or are you all just to scared and overwelmed by greed and egoism to start thinking in new ways and take back the power?

Back to my original question. How do we ensure that cryptos is a real alternative to USD, EUR, DKK etc., and not just  more of the same?
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#6
Cryptos will not solve all the problems, but we have to start somewhere. I think it is a good start. If we don't do anything and leave it just as it is, the banks and governments will continue their scam. Yes, they are scammers. If they want they can take everything you have. Why? Because they know exactly where to find it. It is all centralised in banks. Whit cryptos they can not.
I have to look back in history but it happened here in Belgium. Long time ago, before I was born. The government decided to take all the money from all the citizens. Only real estate was not taken and the clergy was allowed to keep their money.

In the past people have fought for freedom, ideals, voting right and many other things. Lots of things would not be possible if they didn't fight. They did it for the future. In that time the future was what we are today.

So maybe we cannot change lots for us today, but maybe we can for people in the future. My kids, your kids, ...
Yes I say maybe, because I don't know. But a maybe is no reason for me to do nothing. If I believe my actions might have a tiny little chance to change something, well in that case I am ready to go for it.
What is this thing that builds our dreams, yet slips away from us?

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#7
MNX is the one!..pays interest and trying to be relatively stable vis-a-vis USD

It need a few more exchanges, but these guys just might pull it off
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#8
I am not sure how much truth is in the idea of a global elite who control things for their own ends. But for sure it was the banks that caused the financial crisis and it was the banks who were not punished but rather the ordinary people. We, in Britain, live with austerity, where prices go up but wages do not.

We have situations like the Grenfell Tower disaster where the poor are sacrificed to make money for the rich. What is even more bizarre is that KPMG have just resigned from the Enquiry into the disaster - the same KPMG who have a vested interest in several of the companies involved in it! You could not make it up! http://www.bbc.co.uk/news/business-42598976

Things like this are why crypto needs to take of big time but when companies like KPMG have a vested interest in so many pies, it will struggle.
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#9
Well, being involve in crypto does not mean that we all have an opinion on it or that we want to change the world. Believe me... I am trying to make this world a better one in every aspect of my life. I discovered the crypto world when I bought Rimbit for the first time on IGG and became interested since. So, do I think crypto is better than banks? Really? I'm not sure. What I know is that blockchain technology will change the world as we know it now... and that we better get prepare for it while it is still manageable. What happen next is up to human race... but for what I know, as long as any human is involve in any concept or project, you'll see good and bad from that things... Always. And there is no exception for crypto.
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#10
That's a good input Cell. Crypto is neither good or bad. It's the same with money and guns. The use of the item can be good and bad. It's people who are good and bad.

IF and I mean IF crypto is used as an alternative to the banks at it is supposed to be then people are their own banks. The transfer fee is low and the speed of a transaction is very high for money transfer in an out of a country. No bank days. That's good.

If we look at this group. Why do we invest in crypto? Is it pure greed? I think not. It's to promote an alternative to the current corrupt financial system and yes also to be rewarded for that.
Cardano is the most promising 3 gen. crypto right now.


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