Are National Currencies A Bubble ?
The looming national currency default is the single most dangerous aspect currently at play in our global economy.
In this technological age it is a little bit difficult to imagine that back in the day currencies could be implemented without the use of cryptographically secure, distributed, digital ledger technology.
In the 21st century crypto world we take this for granted. But we should remember that not even one national fiat currency currently uses any of this technology.
So if they're not built on multiple layers of trust, what is keeping the banks from lying through their teeth about their internal ledgers and accounting when they report their holdings? Nothing actually, and they get caught doing it all the time. Fudging numbers, rates, ratios and supply statistics are all more or less normal practices which national banks and the private institutions that rely on them use to stay afloat.
If we in the crypto industry were so nonchalant and laissez-faire about our money supply nobody would be willing to do business with us.
So why would anyone deal with the national fiat currencies anymore, when the organizations peddling them can't even produce the proof of work to show that the money they claim to have even exists?
The first reason is habitude. The masses always do what they've always done, because, well, change is hard...
The second reason people deal with national fiat currencies is the fact that the nations that produce them use unethical capital controls to intimidate people into using them, even when they know perfectly well that they're not backed by anything but lies.
In reality national fiat currencies are based on nothing more than just ones and zeros stored in banks private databases. On the other hand, cryptocurrencies are based on something real, with proof work and entries in cryptographically secure, distributed ledgers, which the public may examine at will.
It presently costs between $800 and $1,200 USD in electricity and overhead investment for a private miner to mine a single Bitcoin; for which their proof of work is confirmed by literally thousands of other miners, all of whom have to agree that the cryptography is mathematically valid. But the Saint Louis Mint spends less than $0.02 USD to print a hand full of $100 bills that supposedly have the same market value.
The current method for evaluating the stocks, bonds and commodities markets is based on completely outdated 19th century technology. It requires untimely and intrinsically inaccurate third party verification, which virtually guarantees inaccuracy.
As we scale up towards true market globalization, the old technologies have not been able to keep up. National Fiat currencies and the technology behind them are not able to offer the kind of underlying trust which cryptocurrencies are. Nobody believes that they have the actual value that they claim to. The lack of built-in trust is leading a slow downward spiral for every company and market dependent on the old technology.
In addition the new tariff war threatens to weaken the position of many national currencies even further - an untimely repeat of the Smoot-Hawley tariffs that began in 1930, and fuelled the decade long Great Depression.
It is time for us to stop using ancient and outdated solutions when real technological solutions already exist. We need faster adoption and government support for cryptocurrencies much more than we need capital controls and half baked legislation to govern them according to the old models.
We have the tools to fix it, but will we?
English source: Are National Currencies A Bubble?. La version originale français: Les monnaies nationales sont-elles une bulle? Image was adapted by Hadrian Israëlfrom an original image located at: Bitcoin Doing Better Than Iran’s Currency, All Rial Holders Will Lose 57% of Their Value