There you go, it's another horror scenario that may be unfolding. OK, OK, it's a bit phantasmagorical, but it could happen - if this craze continues and spreads and, if the global economic crisis spreads! What if people will run towards cryptocurrencies gradually and step-by-step the digital currencies will become unaffordable (to most), while almost no-one will want fiat money. Of course, fiat money could be negatively affected by any crisis, whilst digital currency could play a "safe haven" role. Amid economic crises and due to the rising popularity of BTC, LTC etc., there could be a run towards P2P money, which could be regarded as a ditch of fiat money. Metaphorically: Bitcoin and Litecoin could act as that "very expensive asset" that people just couldn't afford during a hyperinflationary scenario. The purchase power of the BTC and LTC has risen tremendously this year. The Chinese might as well ditch the dollar for the Bitcoin. Now, how about that? (Of course, I don't think they could get rid of their bonds, but they could buy BTC for USD, the population at least). The less people hold fiat, the less valuable that will become. If the masses will start turning to currencies like BTC, LTC, the central banks will go bust! In a way, cryptocurrencies could be regarded as global currencies... I'm trying to imagine what role and what influence cryptocurrencies could have in this current economic crisis...
Crypto-currencies for now are a novelty. All the Libertarian hopefuls that see the dawn of a new age being 5 years away need to accept this. Fiat is a very important part of the crypto ecosphere and just because a few merchants are now accepting Bitcoin, it doesn't mean Paypal and Visa are on the verge of extinction. People need to understand that Bitcoin and Litecoin are only a few steps away from being scuttled by the authorities. Sure, they can't destroy the block chain, but they can make it very hard for you to cash out your money into fiat or they can lean on the trading websites by forcing banks to shut down their monetary accounts. The Commonwealth Bank did this with Coinjar, which is why they fled to the NAB, but it isn't unreasonable to imagine a scenario where the US leans on Australia and the result is no financial institution will accept Coinjar Remember that in the long run, NO authority or government in the world with any power would support a currency they cannot control (but in the short run it may serve some interests). What does encourage me about crypto currencies is that it represents a natural evolution, and evolutionary changes are much more powerful and lasting than revolutionary ones. It will be interesting to see how things go. All this is not to say that in 20 years time, such currencies won't be a part of the broader global economy.
http://fiatleak.com I can see crypto eventually forcing a pull back in the control certain ETFs have in the manipulation of 'traditional' stores of wealth. Central banks supposedly hold gold, and as far as I'm aware, they currently won't touch crypto with a barge pole. If a competing currency is sucking wealth out of their beloved fiat, they will have no option but to 'free' the gold from this manipulative grasp ETFs hold over it. Oddly enough the very reason TPTB allow ETFs to drag on the price of gold is because of a very valid concern that investors will flock to gold as a safe store of wealth in this economic climate. And ETFs in the futures market, in the form that exists today, makes other higher risk investments appear a safer place than gold. I think when central banks are face with either the masses flocking to crypto or gold, they will pick the lesser of two 'evils' being gold. Question is, will the central banks be able to implement Basel III fast enough to revalue gold as a tier 1 asset?
No everybody is going to run to silver I tell you It's going to da moon ! Seriously I used to hear the same sort of bs during the Internet boom Bricks and mortar was dead - online stores were going to take over the world
I don't see the relevance of your comparison? People becoming aware of the biggest scam in human history that is the world fiat currency system is hardly comparable to the "internet boom" lol
