Home Cryptocurrency Could Crypto Survive Without Fiat Currencies?

Could Crypto Survive Without Fiat Currencies?

by Matthew Harris

Sure, there has been plenty of speculation regarding the possibilities that cryptocurrencies present to the world, with many enthusiasts claiming that some day they will completely replace fiat, or traditional, currencies. And indeed, more and more traditional financial institutions are warming to the concept of blockchain technology and the world of crypto.

Many that were once vocal opponents are now actually exploring the possibilities of what blockchain could mean for their organization, while others are outright working alongside digital currencies in some fashion. While Bitcoin and Altcoins have yet to fulfill their “destiny” of taking over the real world as many enthusiasts predicted, there are some signs that a few of the more popular cryptos are wedging their way into the traditional business space.

We’re seeing more retail stores, eCommerce sites, and big-name merchants accepting at least a few different cryptos and crypto-ATMs are continuing to gain popularity and spread throughout the country. Of course there are also numerous projects being built on the Ether, Ripple, and other blockchains, and there is almost daily news regarding another exchange somewhere in the world introducing trading for at least one altcoin or another.

As many of us realized long ago, with cryptocurrencies’ inherent ability to prevent fraud while providing complete transparency, the entire world’s commerce could be completely transformed.

The momentum has only just begun.

Now, call it a “conspiracy theory” if you like, but as many economists will tell you, paper money is virtually worthless. The “value” is easily manipulated and is highly subjective to outside events such as war and natural disasters.

So, if traditional fiat currencies were to finally “crash and burn,” could our favorite altcoins continue to exist?

The price of Bitcoin as of this writing is $7,994.54 USD, but if the dollar were to disappear tomorrow, does that mean Bitcoin would crash as well?

Could cryptocurrencies bounce back with a price-point based on precious metals, such as gold? The current price per ounce of gold is $1,331.17.

That means that one Bitcoin is currently worth about 6 ounces of gold.

Of course if fiat flatlined, I guess there’s no telling what would happen to the price & value of gold. I’m sure there are plenty of folks out there that could immediately tell us one way or another, but it’s above my pay-grade. However, there are likely those that can point out vulnerabilities in the price of gold

In this dystopian future, could cryptocurrency simply become THE currency standard for the world? Not based on fiat or gold or any other traditional forms of value, after a bit of a bounce around on price and likely the demise of some “low hanging fruit,” could massive instability in the world of fiat result in the ultimate stability of cryptos?

I don’t have the answer obviously, it’s just a subject that came up and I thought I’d take a look and throw it out there for contemplation. Take a second to throw your opinion in the comments section or drop me a line at matthew@cryptotradernews.com, especially if you’re a financial expert and can provide a professional opinion on what could transpire in the world of cryptocurrency if fiat ends up croaking.

Related Posts