“I know that once upon a time, a coin was worth $5 if it had $5 worth of gold in it,” Blankfein said. “Now we have paper that is just backed by fiat ... maybe in the new world, something gets backed by consensus.” I think he is wrong, consensus i.e. public opinion, is fickle and cannot for the basis of a monetary system.
The crypto will start to be a serious currency the moment that a stable, reliable bank or a state will exchange the token for "real money" - dollars or better, gold. If a Swiss Bank announces that it will exchange bitcoins for cash dollars or gold coins at a certain rate, that rate will become a basis and people will be able to calculate the risk of variations. A futures market with enforceable contracts would also act to solidify the token.
A solid token would harm the world's government power to manage their currencies. I doubt if they will tolerate it. I also doubt if they can co-ordinate their actions to destroy it. Bottom line: I dont know.
P.S.: In itself, there is nothing exceptional that a block chain is considered money. I wanted to illustrate the concept with a Spartan iron bar money, but none could be found on the net. So the pic shows the kissi penny which was a bundle of small iron bars. One could buy a slave for 300 bundles.
Lykurgus dropped the iron money in vinegar to make it fragile and useless, yet ,most monies had some use. Post stamps were valued by collectors once, cowrie shell could be used in personal decoration. Spartan money was backed by the State. Bitcoins have no use, no one is collecting them, it is backed by nothing.
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