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RE: Can digital currencies really replace traditional money?
Replace?
Meh, I think it will be a long time before that happens. The thing nobody likes to talk about with digital currencies is... well, to put it simply, no one is spending them as currency for the moment. Everyone is hoarding them. They're not being used as an exchange medium very much.
Now with that said, they are definitely here to stay, and they're going to be one of (key words: one of) the things any investor needs to add to their bag of assets if they want to stay competitive, just like stocks, bonds, and commodity assets.
Ask this question about digital currency replacing standard currency about fifty years in the future and it may result in a very different conversation, but for now... well,
"hodl on just a minute here."
I completely agree with you @patriamreminisci . most people are just stacking and hodling the coins for now. and most are still converting to fiat to buy lambo.....
People in some countries like Argentina, Zimbabwe...may use crypto soon because they don't believe in their current fiat, their government is very bad in control the inflation.
I hadn't thought of that. But wouldn't they all have to agree on a specific crypto, and a specific medium of exchange?
See, that's one of the problems with the liquidity of cryptocurrencies: they're not easily interchangeable, and they're not easily transferable. For instance, if I'm holding 13,000 SMT, and I want to pay you 20 of those, but your wallet doesn't take them, then I can't send money to you. If you're holding BTC and want to try and send them back to me, the same is true (and let's not even get started on the insane transaction fees when using BTC).