MANY MEMBERS OF THE CRYPTO COMMUNITY HAVE BEEN PREDICTING THIS FOR YEARS.
At the same time, many economists, bankers and financiers have held on to the idea that fiat will never be replaced by a crypto-currency.
Although Crypto-currencies have not “taken over” as king of the payments systems, there IS growing evidence that some have managed to get their “foot in the door”.
With the popularity of the Bitcoin, it seems likely that it will be first in line to attain major adoption as it clearly has a large lead from being the first on the scene. Why?
Bitcoin ATM’s and startup payment systems such as Flexa have served to encourage adoption by making it easier to obtain Bitcoin AND with Flexa launching SPEDN, an easy answer for spending Bitcoin at traditional brick and mortar stores such as Starbucks and Nordstrom. This has helped Bitcoin outpace Altcoins (any crypto that isn’t a Bitcoin) and pull into the lead of mass adaption.
Altcoins, or digital currency alternatives to Bitcoin, have seen lower levels of acceptance and adoption as Bitcoin. Litecoin (LTC) one of the earliest altcoins to come on the scene after Bitcoin, is accepted and dozens of businesses through the Litecoin Network, however, it comes to light that some of these businesses are Big corporations, exchanges or even specialized stores. This is also true of many other Altcoins as well.
It is important to note that many of the businesses that accept Bitcoins as payments do not accept other currencies and is the case with many listed on the USEBITCOINS growing list of businesses who accept Crypto-currencies. (https://usebitcoins.info/ is a good resource site with over 5110 businesses listed) there, you will find stores that accept Bitcoin but not necessarily Altcoins.
Bitcoin Magazine raises a good question in regards to a dollar or Fiat backed Coin:
“The line between fiat and cryptocurrency is getting fuzzier. With the advent of Bitcoin 2.0 technology, we can now use cryptocurrency to exchange stocks, property, commodities, and even state-backed money. But if the whole point of cryptocurrency was to decentralize the financial system, what’s the point of a dollar-backed coin?“
In the end, it’s very difficult to say which Crypto-currency will win the race to mass adoption. Perhaps even a payment system such as SPEDN will be the deciding factor on mass adoption as the ability to use multiple Crypto-currencies (not just Bitcoin) pushes toward mass adoption of no particular Crypto-currency.