Firstly, I apologize for slacking on my posting. It has been a while. Sometimes life gets in the way!
Secondly, I am new to the crypto space, having only been truly studying it for a couple months. So, please, take this post with a grain of salt, and understand that it is just my opinion as of right now.
Now, let’s move on…
Will there ever be a truly decentralized currency? Well, I dunno! But my gut is telling me NO, there will never be a truly decentralized currency.
What does decentralized mean?
Decentralized, in the context of cryptocurrency, like Bitcoin for instance, means there is no single governing body that regulates the value of one single Bitcoin. Whereas, the flip side to that, is centralized. Meaning, there is a single governing body that regulates the value of one single dollar (fiat currency).
Currently, the “main stream” currency is fiat. In the United States, that is the dollar. That lovely, LOVELY green piece of paper that buys stuff. Or, technically (now days anyway), a lovely multi-colored piece of plastic that you swipe, in which virtual fiat dollars buy stuff.
No matter if the vehicle to purchase stuff is paper or plastic, the value that money has is controlled by the United States Government: The Federal Reserve.
The Federal Reserve (the Fed), controls interest rates, which then control the value of the dollar. This, of course, is generalized, as there is a little more to it than just messing with interest rates, but you get the idea I hope.
So… with something like Bitcoin, the value of that currency is simply what the people think it is. You, me, John Q. Public and everyone around the world determine the value of Bitcoin. Governments have absolutely no control.
There are no banks involved with defi (decentralized finance) currencies like Bitcoin. But there are banks involved in every aspect of fiat. And the current financial system is very antiquated, and overdue for a major upgrade.
But! Does this mean there will be a truly decentralized currency? Ever?
No. There Will Never Be a Decentralized Currency.
Before you crucify me, hear me out:
Since when does the government – here or abroad – allow the people to control anything?
It is my opinion that governments around the world will never let “the people” control the currency. It’s just not in their interest to do so.
If they relinquish control of currency, they relinquish control of the entire economy. They would be nearly powerless when it came to global trade and commerce. What they want coming in or going out, for example, would mean nothing, as they would not be able to control, or track, money flow.
You see, the way defi currencies work, is they’re untraceable. Well, unless you’ve been living under a rock for the last… well… since forever… you will know that the government tracks everything. They do not let us do anything anonymously.
Not only that, but a defi currency would lead us closer to a One World Order. A “New World Order”, if you will. And honestly, I’m against that, as I’m sure many in the government are as well.
A One World Order has way too many negatives to list in this post, but in general, there would no longer be global competition. Some may argue that’s a good thing, but it surely is not. And again, there are way too many reasons why it’s not a good thing, to list in this post. So let’s continue on…
So What Happens To Bitcoin And Other Cryptos?
It is my opinion, that a far more likely scenario for Bitcoin or even Ethereum, is they become a store of wealth by replacing the current store of wealth – gold.
This is entirely possible for a number of reasons, but the big one, in my opinion, is we don’t know how much gold exists on the planet. Sure, they’re are estimates, but there just that – estimates. However, we know exactly how many Bitcoin’s are in circulation, and how many there will ever be once all are mined.
It is much simpler to adjust price based on supply and demand, versus supply, demand and estimates.
So I can totally see Bitcoin or Ethereum, or something like them, replacing gold as a store of wealth.
I can also see something like XRP (Ripple) taking over as the medium in which we transfer payments globally.
Ripple does not seek to become a decentralized currency like Bitcoin or Ethereum seek to do. Instead, what Ripple (XRP) does is provide a means in which monies are transferred from one country to the other, through banks.
Currently, transferring monies from country to country takes days and costs lots of fees. Fees like currency exchange fees and convenience fees, etc etc.. Consider the cost to transfer money via Western Union for example. It’s silly!
XRP, however, can swap monies in seconds at little to no cost. This, in my opinion, is game changing.
Is XRP the best there is? Maybe not. Like I said, I am new to the Crypto space, so I am just now starting to understand it all. But I like what XRP is trying to do.
It’s not all doom and gloom for the Crypto space, I don’t think. It is just my opinion that there will never be a decentralized currency, as many in the Crypto space are hoping for. The governments just won’t allow it.
I do, however, think that crypto is legitimate and serves a legitimate purpose. As I mentioned, using it as a store of wealth or a payment medium is good in my opinion.
No matter how you slice this pizza, future currencies and payment/transfer methods will look much different in the not so distant future. Governments around the world have taken notice of crypto and what it does.
I just don’t see the governments of the world ever letting their people control the value of money.
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