Do we need fiat currency? I guess if you ask a thousand people you would probably get the same answer. Well I have to pay rent or my car payment. Or groceries need to be purchased.
So technically we need fiat currency to survive. Bills won’t pay for themselves. And most newbies in the crypto space will usually cash out crypto gains for bill purposes. For each their own.
Yet, the time is coming in the not so distance future where fiat conversion may not have the same importance. Accumulating crypto has been the name of the game. Most don’t want to part with an ever appreciating asset. And most will part with their bags of tokens via fiat conversion.
However a time is on the horizon where fiat conversions may become irrelevant. A time where earned crypto will be spent for goods and services. Now there are a few wallets that allow you to spend crypto. And this trend will begin to accelerate as mainstream adoption occurs.
Now this question remains: Will people spend their cryptocurrency? I believe that they will with the right incentives. These incentives would need to be a combination of rewards and ease of use. Not to mention market and retail crypto acceptance.
As I have written in the past I believe there may be some form of fungible IOU crypto system that may develop. Ripple and Stellar have been a huge disappointment in my book. Maybe Jed will get his head out of the sand.
This IOU system could be a p2p credit system utilizing crypto currency as collateral. Once implemented it could create a system where users are encouraged to spend. It could also give retailers and businesses the ability to extend fungible IOU credit to each user.
Having crypto wealth is a good thing. Yet, promoting trade in the real world will lead to mass adoption. It could also virtually eliminate the necessity of fiat on/off ramps. Why convert/spend fiat when you can transfer SATs for your morning coffee.
In my opinion there will always be some form of fiat in the marketplace. Yet, it may not exist in it’s current iteration. This symbol $ is very powerful and carries weight throughout the entire world. But things can change very quickly as we all are aware of.
Lastly, my hope would be for a Leo Finance/Hive debit card or crypto spend wallet. I believe that instead of going through the entire exchange process it would put our hard earned tokens into the general economy seamlessly. However, I know we have to walk before we can run.
Posted Using LeoFinance Beta