Is cryptocurrency being our new Fiat Money?

Core developers have proposed a scaling solution called SegWit, which would not only enable more transactions to be added quickly to the blockchain but also potentially help pave the way for wider adoption of bitcoin by big institutional players.

And now, anyone can create their own cryptocurrency using open-source code from developer LlewClaasen 's Bitcoin Classic project. The new Classic Coin system allows users to "mine" their own tokens, which can then be exchanged with other holders of the currency based on supply and demand—or simply bought and sold like a commodity for its own sake.

This is what my friend told me: I sell you my research notes, and we make it a cryptocurrency or a stock or a commodity. And I keep a percentage of it for me and you get a percentage of it."

The first thing to recognize is that both Claasen's efforts and those at Blockstream are simply one way among many that that bitcoin could evolve as a currency. The nature of those innovations, however, should give thoughtful observers pause. If core developers are proposing more efficient ways of using bitcoins, does that mean there's no place for new currencies? Is bitcoin so successful that it has rendered its own successors obsolete?

And what about bitcoin's less sophisticated competitors, like Litecoin or Ripple? What gives them value over fiat money is the fact that they are decentralized. Does decentralization give altcoins a unique quality that could give them long-term staying power—or is decentralization just an endearing quality that makes these currencies less efficient?

I think what we're seeing here is how cryptocurrencies are maturing in the market. Initially, there was only bitcoin, and it was seen as an all-powerful competitor to fiat currencies. But as bitcoin matures, we're now seeing people come back to what they were originally seeking: a decentralized currency and a transactions system that's secure and independent of government control.

"We're at the beginning of the beginning," said Adam White, director of business development and strategy at Coinbase. "Bitcoin is just barely out of the starting gate."

Current situation

Bitcoin was created in 2009 by "Satoshi Nakamoto," a pseudonymous developer or group of developers, but the community didn't really take off until 2013. The price started at about $13 in late 2011 when Silk Road, an online marketplace for illegal drugs that attracted business from people looking to evade law enforcement, began accepting bitcoin as payment. Currently, there are a lot of Giant companies are making transactions through Bitcoin, Ripple, Ethereum, and many others.

So, after we can hope that, cryptocurrencies could be the new fiat money for everyone in the world. Most of the investor economic analyzers also said that “it is very near to us, cryptocurrencies will be the fiat money”.

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