Random Blog on Crypto (Part 04) : Serious Problem with current Monetary System (Crypto Can be a better solution)
I have previously posted several posts on the present day economic system and some of its flaws. Today I will share with you one of the major disadvantages of the current dollar system and you will easily understand why cryptocurrencies and related technologies will dominate the future.
The current world economy is mainly dependent on the dollar. After the Nixon shock of 1971, the dollar became essentially a paper money. That is, assets can be bought from different countries by printing dollars. Because it is an important currency for the whole world, everyone has to buy dollars. Dollars are widely used in international trade or as petro-dollars. Countries around the world mainly adopt the dollar system for their trading and exchange.
Those involved in international trade always prefer dollars in their foreign exchange reserves as they will need dollars to pay various bills. Modern economists think it is very logical for an import-dependent country to keep some reserves in foreign currency such as dollars. It is important to keep dollar reserves to cover at least four months of import expenses.
But we often miss another sensational and important aspect of the dollar-based economic system. Another weak point of the dollar system is counterfeit notes. Since the dollar is not the local currency of all countries, that is, the domestic currency of many countries except the United States is not the dollar, so it may not be possible for people from other countries to always check whether this dollar note is fake or not.
Therefore, if the dollar is counterfeited, it will be very difficult for common people in countries whose main currency is not the dollar to identify this counterfeit. And the opportunity is used by many dishonest people who do this work in different countries of the world and they print fake i.e. fake dollar notes and they are able to deliver them to different parts of the world.
This is one of the major weaknesses of the current note-based monitoring system, which we can solve with the help of cryptocurrency and blockchain, because it is not possible to fake Bitcoin or any other crypto. Moreover, even if anyone wants to, they cannot create such currency, i.e. it will not be considered paper. Digital money system can be a solution but crypto can be an even better solution for its decentralized and secured nature.
It remains to be seen how people will accept Bitcoin in the future. I just explained the problems.
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Thank you for shedding light on the flaws of the current dollar-based economic system and the potential of cryptocurrency and blockchain to address them. Your article highlights the importance of considering alternative solutions and provides valuable insights for readers to understand the benefits of a decentralized and secure digital currency system.