The Currency War

A day will come when the barriers of centralized finance will meet their match, and the further stocks and global issues continue to damage cryptocurrencies, the closer that day comes.

“Cryptocurrencies are vastly distinguished from any fiat currency, because, unlike the centrally controlled fiat currencies, you cannot be canceled or denied the ability to make transactions anywhere anytime, without the interference of any other third-party agencies.” ― Olawale Daniel

Bitcoin (BTC) has once again gone bearish and fallen below the $20,000 USD marker, something I have expected but have not enjoyed. Cryptocurrencies are correlating heavily with the stock markets, which will continue to take stabs from things such as the federal government raising taxes, damaged international relationships in the wake of wartime, disrupted supply chains, and overall inflation forcing people to become desperate financially.

Naturally, altcoins such as Ethereum (ETH) and Solana (SOL) follow Bitcoin down this double-correlation trap as they have before many times. I believe the time that people start to value the values of cryptocurrencies and blockchain technology over their fiat equivalent value through centralized exchanges is going to spur off true decentralization at the height of the ongoing economic fall.

The reasons this has not already happened are quite simple. Not many stores accept cryptocurrencies, especially altcoins or any large variety of cryptocurrencies, we are not there yet. So, for our crypto to currently hold its fiscal value it must be swapped out to fiat in order to benefit from it in almost all instances. That is a major problem in the world of decentralized finance because it breaks the cardinal rule - reliance on external banks, exchanges, fiat currencies, and governments.

Of course, the moment true DeFi (Decentralized Finance) comes to light, the government will be on it like white on rice. It will take time and a massive amount of educating new users to achieve global adoption, some even argue it is not possible. However, I believe people will become so fed up with the systems we have in place, that the tide will eventually turn. It won’t be easy and many hurdles will have to be dealt with in order for this to happen.

I would argue that the US government’s federal reserve would not meet up to the standards we set in open-source DeFi projects, which, quoting the old Zeitgeist film, “The federal reserve is no more federal than Federal Express.” They control the amount of money in circulation at all times, they process illegal funds just as they would legal funds, and they have printed more money at a deficit than there is in existence worldwide.

If these things were applied to a crypto project, it would no doubt be a laughing stock of a pathetic scam. It is held upright by the government, the social acceptance of the US dollar along with other cash currencies, and the world’s tendency to lean on USD as a reserve currency for other fiat currencies to correlate their value with. The US government will without hesitation go to war to keep that as the status quo, it’s a war for control, primarily against China and Russia; but this is not our war.

How long will we see people cash out blindly for fiat before we see stores adopt more cryptocurrencies for payment? Imagine, if every store you shopped at from Amazon to convenience stores, your local butcher or grocery store, and every other possible place you could buy something all accepted cryptocurrencies. Why would we need centralized exchanges? Would KuCoin even serve a purpose over a DEX (Decentralized Exchange) with lower fees?

I believe as adoption grows, correlation with fiat will gradually disintegrate. We will face blowback from the government, but one can easily argue that so long as an asset is listed on a centralized exchange, it cannot be truly decentralized.

We need to push for the values behind these currencies, and pressure companies to accept them as payment. Maybe now isn’t the time with economic crises occurring worldwide, but a time may come that we may need to completely boycott fiat, and then companies will have no choice but to accept cryptocurrencies as payment.

Until then, it’s a niche market at the peril of governments run by corrupt politicians and madmen, voted into power by people we wouldn’t trust to run a DeFi project. This is the currency war, and the way we win is by spreading the word on the importance of decentralized finance, which ultimately amounts to the financial freedom and liberty we deserve.

How long will we let them treat us like sheep for fiat without values, only to be heavily taxed for something that violates freedom?

The future will be decentralized.

As always, comments & suggestions are highly encouraged.

Stay smart & Stay safe.

-Thomas Wolf

Pronouns: He/Him/His

DISCLAIMER

I am not a certified financial, tax, or legal advisor, analyst, or planner. The above information should not be considered advice but as an opinion intended to share information and ideas for entertainment and independent research purposes. I am not responsible for any losses or damages incurred due to misinterpreting my personal opinions for professional advice.