Cryptocurrencies In 2018: What To Expect

January 10, 2018

Cryptocurrency has been a huge buzz all year with bitcoin taking the lead. Since January of 2017, Bitcoin has become the darling for investors. The phrase Buy Bitcoin has recently surpassed the phrase Buy Gold for the first time in history in terms of search on the internet. With the current situation, money has picked up another definition as the cryptocurrency takes over. All thanks to programmers who have come up with this technology on how to generate money.

Bitcoin and Ethereum are the two coins which have shown great value as they have doubled over the last few months. However, since this technology is still a grey area, most people are calling this a bubble and thus it is just a matter of time until it bursts. On the other hand, it provides security and a form of investment for people who invest or put their money in the digital network. Apart from that, it is decentralized and thus not controlled by any central authority like the fiat money being controlled by the banks. It all comes down to what people decide and want as they feel secure with cryptocurrencies.

What Does This Mean For The Banks?

If people switch their trust to cryptocurrencies, then banks will no longer have a role to play. It will be the end of banks. They will not be able to compete with a product that is not owned or controlled by anybody, demands security for money and is being greatly endorsed by people. This means that the public will no longer desire to store their money in the bank, which will lead to very low demand in fiat money. Cryptocurrencies are controlled by the people in the same network as there is no presence of a middleman which makes things simple and more transparent.

Hyperinflation Will Kick In

Hyperinflation is what will be the ripple-effect of all this. The major currencies used for trading around the globe will start losing value at a great speed as more people store their wealth in cryptocurrencies. With the value of a nation’s currency depreciating, the price of imports will rise. This is what will happen in the UK to the Sterling Pound. When China decides to sell oil in a different currency other than the USD, then the USD will crash. Also, Russia is in the process of building their own cryptocurrency which could see a revolution where more people will start embracing the technology and abandon fiat money.

The Cryptocurrency Revolution

This will not be a smooth transition, especially if the hyperinflation situation kicks in. It is hyperinflation, in Germany, which led to World War II and this could take the world into such dark days. However, this would not be good for anybody and thus the hope is that the transition is peaceful.

Looking at the financial crisis of 2007/2008, the world economy was short of money. The circulation of money was scarce which brought about the crisis. The solution was reached at to print more money, in trillions, so as to keep the circulation in the system, sufficient. With cryptocurrency, such a solution will not be possible as it is not controlled by any central authority. It is a dead-end when superpowers are faced with huge debts that they are unable to manage, control or service since fiat money will no longer be valuable. Banks will run bankrupt, people will be unable to access money from the banks and this may send out a panic that can threaten peace.

The cryptocurrency revolution will not be an easy one. Even though it gives everyone the financial freedom, as it should be, world leaders may have a different approach to it. The world can only hope for the better, in terms of a peaceful revolution.

US silver mining began on a large scale with the discovery of the Comstock Lode in Nevada in 1858.

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