Do you think Cryptocurrency (e.g Bitcoin, Ethereum) will ever replace Fiat currency (eg SGD, USD, YEN etc)? What situations would render it as a store of value? - Seedly
 

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Asked by Kenneth Lou

Asked on 20 Aug 2018

Do you think Cryptocurrency (e.g Bitcoin, Ethereum) will ever replace Fiat currency (eg SGD, USD, YEN etc)? What situations would render it as a store of value?

I see that you advocate value investing. In what cases do cryptos actually allow for the similar conditions to be met for it to be treated like a 'value-stock'? Interested to hear your thoughts!

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Hi Kenneth, as an IT guy late to this game, I think I am optimistic about a crypto as a currency. But a lot of things needs to happen.

  1. Make it a viable medium of exchange for normal day goods and services. Right now is challenging because unlike the Fiat we have now the value keeps fluctuating, it creates uncertainty in people meaningfully using it as the medium of exchange

  2. Security and trust. While the whole premise is that there are validation of the transactions and it's transparent, it's not very assuring that once I lose my wallet I will lose the money forever. I guess that's why I prefer to own businesses on stock exchange or hard assets since I can see they are tangible. Bits and bytes are rather intangible.

Having said that, in the next financial crisis, the body that bail out everyone might be the world bank.and they have talked about a pseudo currency call sovereign deposit receipts (sdr) and they are favorable of crypto.

So we might see them creating something out of it.

For what we know we still do not know the eventual form. Would it be btc or etc? It might be neither.

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Kenneth Lou
Kenneth Lou

21 Aug 2018

Interesting! Thanks for your thoughts :) indeed it’s a world which is always evolving quickly. And also read about the soverign deposits one. I think along with many other bloggers, the idea of the blockchain is very real indeed.

No.

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Heng Kai Le
Heng Kai Le
Level 5. Genius
Answered on 06 Jun 2019

I confess that I don’t know much about cryptocurrency but I was recently asked to join Minds, which positions itself as an alternative to Facebook and Twitter. Instead of Facebook and Twitter leveraging our personal data and manipulating our social media experience through ads and the such, Minds is allegedly for freedom of speech and pays you Minds Tokens for every vote and comment and share you get from other users. I could accumulate enough Minds Tokens to convert them to Ethereum and lastly to US dollars. Well I’m using the June holidays to see how legitimate this claim is. Will report later ;)

Information about Minds tokens here:

https://minds.com/wallet/tokens/101

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