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Cryptocurrencies & death of certain national currencies [Copy link] 中文

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Post time 2017-11-25 12:08:00 |Display all floors
Cryptocurrency is innovative but it is most useful for eliminating a national currency.

Of all the currencies, the most susceptible currency to this cryptocurrency is the USD.

The EUD will stand to benefit most as it is the next most internationalized currency and the RMB may catch up one day. The RMB by itself will not replace the USD although the EUD might because both the USD and the RMB catered for different users and economies of different structures while the EUD and the USD shared more common users between them. Hence in the absence of cryptocurrency the RMB and the USD or the EUD will co-exist side-by-side indefinitely. Humans tend to hedge and this is where the USD/EUD-RMB will cater for everyone's hedge play.

However the advent of cryptocurrency which is immensely ultra-speculative and more borderless when compared to the USD, which are features loved by a significant portion of global businesses and also governments will replace the USD's purposes. With cryptocurrency a host of significant characteristics of the USD is hijacked by the cryptocurrency. If the USD's characteristics is reduced to somewhat near the RMB, why do we need the USD then? The reduced USD can then be easily matched by the EUD which should be able to knock the USD down.

The next question will be - can a governmentless-cryptocurrency fail? Perhaps. Its probably a merry-go-round musical chair game and see who is left without a seat. No business will want to be responsible for the entire globe's businesses. Can digitised national currencies or proxy-cryptocurrency of national currencies compete with pure-cryptocurrencies? What about digitized gold, digitised commodities etc.? How to end the in-between-denominations that is the currencies.

Of course the cryptocurrency creators will want to proof the world wrong. As the war heats up the sole loser will be the USD. Here of course US will also want to prove the world wrong. A currency war looks inevitable and many small currencies can be wiped out.

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Post time 2017-12-3 04:49:07 |Display all floors
Like Fiat Currency, Cryptocurrency is based on NOTHING.  No, it is not like gold.  You definitely cannot hold it.

Like a Ponzi Scheme, there is no more money you can take out from it than what the original buyers put into it, no matter what the claims are about your ability to "mine" it at home with your PC.

Like a Ponzi Scheme, if there are no more buyers (suckers) after you, the value of your Kleptocurrency will vanish faster than the thief can get out through the window.

It does not replace national currencies, but it can replace your savings, and what goes broke is neither the Kleptocurrency or the National Fraud Currency, but those who believe Kleptocurrency is the solution to Fiat currency.  Not even gold could do the job due to impediments created by the banks.  If the banks adopt Kleptocurrency, it is because whatever separates your cash from your hand will satisfy their demand.

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Post time 2017-12-3 07:32:27 |Display all floors
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