The 21st century will either be a digital one or it won't be at all, that in case of a nuclear war that would wipe humanity out of the face of the earth. I bet all my money that it would be a digital century, but I wouldn't bet anything on cryptocurrencies being the future money we're gonna use on a daily basis as we currently use dollars, euros or whatever.
What will be the standard, that one currency/store of value accepted by all governments around the world?
I doubt it will be XRP, the dollar or gold. The time is passed for all of them. I'd opt for Bitcoin if anyone would give a shit about my take, but my gut feeling tells me it's not going to be just one, thus I'd bet on a mix of digital currencies taking that role. Something like a digital dollar, digital yuan and digital euro...
Wait, aren't those CBDCs, and aren't those controlled and issued by governments? Yes they are and that's going to be a kick in the balls for banks, but at the same time for you and I.
I just read recently "a report prepared by the European Blockchain Observatory and Forum (EUBOF) providing a very interesting contribution on what the digital euro could look like, hypothesizing different designs and architectures." Anyone from the EU around here? You might be interested, so give this thing a read.
Now I know that neither China nor the EU or US have publicly admitted they're in a race to create their own CBDC, but the reality is they are that desperate, and China seems to have stolen the start. It's very close to release the digital yuan and when that happens that's probably to be called the black day for China. EU is working on such a currency as well, but evolutionary steps of such a government product are quite slow in this regard.
“We remain confident that Europe will continue to pioneer global efforts to develop future-proof monetary instruments relevant to the digital era. Regardless of its exact implementation details, a digital euro will certainly go a long way toward safeguarding the stability and future prosperity of the eurozone, while at the same time respecting fundamental rights of European citizens and businesses, including privacy, due process and freedom of movement”.
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Well, if the EU would care at all about the fundamental rights of its citizens wouldn't have had all the corona measures it had that actually trashed those fundamental rights in such a way. I doubt they would care about those once they create the digital euro and pour it into the economy.
One thing is clear though... Well, actually two... On one hand I can see that governments are a bit scared of cryptocurrencies getting out of their control, thus rushing on releasing their CBDCs and moving the economy into a digital era where CBDCs will be the new means of exchange, while on the other I realize CBDCs are not crypto and CBDCs are not designed to empower us, like for example most of the cryptos do.
From the above linked report regarding the digital euro it is also crystal clear that there is a slight competition between states in developing their own CBDC although not publicly admitted. I wonder if they will ever FOMO into Bitcoin the same way they do with creating the CBDCs... That would be something, for sure.
“The speed of innovation by other actors is relentless and a global race to define the world’s reserve currency of the digital era is well underway. Europe cannot afford to not be part of this effort, by both closely monitoring global developments and innovating across dimensions specific to the idiosyncrasies of the eurozone”.
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The relationship between China and Bitcoin is clear now and it's probably better to be that way from a decentralized hashing power perspective, but what about the rest of the world, what's the most crypto ready country in the world?
You'll be amazed to know that the US actually is... Yes, Study names United States ‘most crypto-ready’ country
“In terms of crypto ATMs, the USA is leading the way with over 17,000 which is by far the most in the world, as the next closest country has around 16,000 less,” the results, which were released on Thursday, showed. US law allows for ownership of crypto and its use in banks, and there has been a 140% increase in searches for cryptocurrency in the past year.”
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Taking into account that the US is second place when it comes to Bitcoin hash rate and that quite a few miners are moving out of China to the US, Texas seems to be one of their preferred choices, we might be on the cusp of a situation where most of the freshly mined Bitcoin to be made in the US. Maybe one day we will see that on iPhones to...
Tesla and Elon Musk are a lost fight though, as he shows clear signs of communism confidence and devotion. Good luck with China, Elon, you probably should take into account moving over there to. Take DOGE with you as well...
Will Bitcoin be the reserve currency after all?
I really have no clue, but one thing is clear. CBDCs are definitely some sort of replicas of its tech, although some poorly designed and bad intended ones. I know we probably can't fight governments and establish crypto as the currencies, but I would be more than happy if we could nail them as alternatives and that most of the merchants around the world would treat them as such same as they are in El Salvador.
None the less, cryptocurrencies and blockchain technology is revolutionizing the world much more than we can realize and that shouldn't be overlooked. We're gradually entering the era of abundance that @taskmaster4450 used to talk quite often and couldn't be more excited about that.
Thanks for attention,
Adrian