RE: Why Cryptocurrencies will fail… eventually.
You are forgetting about the global aspect of economics and currency. The term 'petrodollar " represents more than paper dollars printed by the Federal Reserve. It means the full force of the United States military and all countries in trade alliances with us, largely in managing control of world oil reserves. The global economy is hinged on the dollar because of this huge international economic entanglement. That also means that when the US economy tanks because of corrupt banking practices, the world economy suffers. Yes, a lot of nut kicking, and exactly why bitcoin was developed and why bankers like JP Morgan are finally being forced to react to it. Where do I see hope? In countries with strong leadership that adopt blockchain technology and seek to disrupt dollar dependence. This will force a reaction from the US government and yes, I agree that they'll do everything that they can to usurp cryptocurrency as it stands now and seek to gain control of it. Already the biggest banks in the world are looking into blockchain technology and developing new cryptocurrencies. What I see happening is that there is not going to be room for the amount of cryptocurrencies that we see traded currently. People will look to a very small number of currencies which will be strongly supported and eventually legislated. There is already so much money in Bitcoin that governments will have to fight it either with legislation which they could only go so far with before hindering implementation of blockchain currency altogether or else gain market control of it. In which case they can only buy what Bitcoin owners sell. The market can be controlled by people's acknowledgment that their possession of Bitcoin stands for a lot more than a short term gain. The sky IS the limit for crypto if people see it as a long term investment and a way for the people to seize their own financial stability. And the most important step in uniting people of the world to back cryptocurrency for what it stands for beyond fiat trade value is dissemination of accurate educational journalism that builds hope and focus not FOMO and FUD.
Greetings @corpsvalues,
I believe you are correct about some things. When Bitcoin first arrived, it was a total surprise to the governments of the world. That gave Bitcoin several years to do whatever it wanted.
Today, however, the power-grubbing governments of the world and their banking cartels have probably realized that the best solution is to come up with their own version of electronic currency (minus the freedom and anonymity of course). I expect a few countries to go cashless in the next 5-10 years. 50 years from now, I would bet the majority of countries will have banished cash to the dustbin of history.
Unfortunately, this is a bad thing, since it will allow governments and banks to track every transaction everywhere. And, if you have been naughty then the government only needs to flip a switch and your access to money goes poof!
We are living in interesting times.
Don't you think crypto might be a segway into a cash-free society, which will be transparency-free and a dream-come-true for governments to track their citizens every purchase? The powers at be always find a way unfortunately. I really do hope I'm wrong, but history repeats itself...
Hello Eryksd,
I believe there are many governments who would love to track every transaction and get rid of cash. What you suggest is quite possible, sadly.