Let's say the hardcore cryptocurrency advocates are 100% right.

Ok, let's say the hardcore cryptocurrency advocates are 100% right. That crypto is the future and that fiat money is worthless.

The question I have is: How do we get there. How will I know it's happened?

For one, my bank account wouldn't change. If I have $100,00 dollars in there today, it will still be $10,000 when it 'collapses'. It's just that Bitcoin, or whatever-coin will be worth a lot more.

How would that be different from right now? Bitcoin is up 341% this year. Maybe fiat is collapsing right now.

One day we wake up and Bitcoin is at $1 million. What would be the difference in the real world? I imagine Bitcoin's great rise will be against all currencies, so there's no reason the EUR/USD rate should change.

How about gold? I'm not sure how the true-believes think of gold, but why buy physical gold when you can own the digital equivalent? After all, there's a reason people stopped using gold as money.

Oil is antiquated and who needs other hard assets anyway?

Food is a tricky one. I can't see food losing it's value. That will be the crux of it. One day you will go to the grocery store fill up a cart, put down a fistful of $20 bills and the cashier will say "sorry pal, Bitcoin only."

At that moment you will realize the crypto-crowd was right. You rush home, try to buy some crypto and find out that your fiat is worthless.

That's crazy, right?

Ok, how about the alternative where it's some kind of smooth transition, but you go to pay with your crypto-visa and find out that credit is frowned upon, if not banned in the crypto-future.

It's Tuesday and you need food but don't get crypto-paid until Friday. Ok, so maybe you enter into some kind of blockchain-verified credit arrangement where your pay is docked.

That might work, but what about when something goes wrong? Or a payment isn't made, or too much credit is extended that can't be repaid? What if I just don't feel like paying.

Who do you call to get it enforced? The police? The courts? The government? If so, then we're right back to where we started, with the government controlling who gets paid and who doesn't.

What you really need is some kind of system of credit that works kinda like it does today. If so, what's the point of all this?

The elephant in the room is that credit -- and the system of credit -- is one of the great achievements of mankind. For all its flaws, it's created unbelievable wealth and efficiency. Billions of transactions take place on credit daily and only a tiny fraction aren't repaid. When that happens, it's a bit sloppy, and the balance of power has probably shifted too far to creditors, but I don't see how crypto is the solution.

As Perry Mehrling writes, credit is a feature, not a bug.