Cryptocurrencies differ quite from each other.
Some are decentralized, such as Bitcoin.Others are owned by a company such as Ripple.
Bitcoin is deflationary, so scarcity is ingrained. Ethereum is inflationary again, because the coins are used as ‘ fuel ‘ for dapps (decentralized apps).
National Governments hold international reserves in currencies that are most commonly used to trade commodities.
At the moment there is no mention of the use of cryptocurrencies for international trade.
In the cryptocurrency ecosystem, Bitcoin is the reserve currency.The value of all other cryptocurrencies is determined in Bitcoin, although the main projects also have their own USD listing.
In addition, there are a number of so-called Stable Coins, which link the value to e.g. USD or gold.In that case, the issuer of the coins must actually have the reserves to redeem them if you wish.
If such a type of currency would already be used by a government then it is purely for easy digital trading.The actual value is determined by the underlying assets.
Bitcoin is sometimes referred to as a candidate reserve currency.In theory it cannot be manipulated or abused by one party and the ingrained deflation should lead to appreciation.
The lack of own intrinsic value is often cited as an argument to show that it is not usable. The question is, however, whether this is necessary for an exchange. Gold is also valued higher than the value for industrial applications actually represents.Shells have also served as a means of exchange in the past.
It is therefore about consensus and an objection to this is the Chinese dominance when it comes to mining and possession of Bitcoins.
I do think there is a time when cryptocurrency is used to trade certain digital services.There are several advantages to this, such as the automatic provision of micropayments according to contract. The savings that can be achieved represent a certain economic value.
Although Governments may be deploying such digital currencies for internal processes (and thereby being on the balance sheet as possessions), I do not see them being absorbed quickly into the international reserves of a nation.
I think it is something we can expect.However, such cryptocurrencies will look different than we are accustomed to for example Bitcoin. Such a new cryptocurrency will be highly regulated, just unlike the cryptocurrency currently available. The banks and countries that benefit from introducing this aim to solve specific problems. I also do not expect that such a new currency will be available to consumers, no doubt there will be specific agreements whereby someone who acts in such currencies is supported by another currency.
As an ordinary citizen, there is little to be expected.
Until a safety is noticeable (and that means that the ‘ status quo ‘ of the monetary market makes it acceptable), it will not be him.
The purpose of a cryptocurrency is in principle freedom of ‘ bureaucracy ‘, but in recent times the same bureaucracy has caused the majority of the Dutch to disappear below the poverty line in the past crisis.The buffers and agreements that exist internationally ensure the security of the citizen (however much I would like to have a self-determination) of a country.
Is it perfect?No, is it fair? Not always. Are there better options? Temporarily hold. Is cryptocurrency one? Probably not.
What has the past period with emerging cryptocurrencies shown us?That these are extremely volatile (losses and gains follow each other super fast). This means that there can be no safe exchange with it. However, between users, but not in value. I can sell you 1 Bitcoin for 1000 euros, but once you have it, he can already lose 500 euros of his value with no view on regrowth of this value. This makes it a far too risky product for the consumer. Every intermediate form is actually not a cryptocurrency but a link of an existing value in gold via blockchain technology with a name of a cryptocoin.
What can we expect?That it takes a while before the blockchain technology has enough security that it can generate a ‘ digital coin ‘ that is stable enough to rely on for your daily bread.
If it becomes a cryptocurrency, then it becomes one that is controlled by the financial authorities.None of the current Cryptos are eligible at this time.
What can you expect from it?The same as that the dollar dominance has brought. So don’t dream rich.
There is no country in the world that can guarantee a world currency.
And it takes a lot of money to make and use the current ordinary money digitally.Especially in international or global transactions. The costs are very high, which makes the money traffic less flexible.
Cryptos are faster, more flexible and cheaper to use.
The trust we are accustomed to give to a country or institute, you give with crypto the ‘ technique ‘.Fraud is technically simply impossible. Once you see that, there are no institutes as banks need more.
But we are not used to that.So trust it only half. We would like a big bank to guarantee it. They like to do that. But not free. And it doesn’t have to. The technique, if you deepen it, will give you the confidence you need.
The changes we are currently seeing, the gradually disappearing of cash money, are not like politicians say “for our convenience” or “safer for the shopkeeper, etc.No, the government wants more control over what we do with our money.
Mind you: Whatever you choose, it will be in the government with less privacy.
Cryptocurrency is a next-generation technology.The world is rapidly evolving into a digitised era, where digital currencies are much more relevant. Many people earn a lot of money with cryptocurrency because of the digital way the world has become. I have been investing in cryptocurrency for years and I saw how crypto investors in numbers grew considerably. Over the next 10 years I would bet that 8 out of 10 of the world’s population would work with digital currencies. You can start a crypto investment @ Roux Options | Home has been investing with the company for several years and I have made a lot of the company.
Seems like no crazy idea!No longer a country that can export its inflation. An uncorruptable World reserve currency (?).
It does not seem so crazy that there are national cryptos that can then be evaluated.Crypto wars? \xa0 the question is what advantage this has for the population if it is not decentralized and the crypto can simply be inflated. Beyond the speed of transactions, we still remain fooled by governments and crypto bankers.
No not a cryptocurrency but the crypto technology behind it.
Cryptocurrency would function as the gold standard but even worse because no more regulatory options can be applied.
This means practically one can disconnect from gold standard but with cryptocurrency this is impossible.
The fixed Exchange rates linking the unequal economies will be a montair crisis that causes uncontradable inflation in deficite countries and deflation surplus countries
For these reasons, money must be politicized to avoid the economy coming into a depression.