In a recently published report, the IMF claims cryptocurrency is too volatile to be considered money, although the same report acknowledges the fact that crypto is used in commerce.
Is volatility an issue, though, or perhaps the real problem is the structured devaluation of fiat caused by centralized entities and massive issuance of new money resulting to high inflation levels?
Fiat money is another mechanism to control the public. While cryptocurrencies are volatile, still some are offering all features money should have and unlike fiat, they don't always devalue over time.
While cryptocurrencies are volatile, the main purpose (of some of them) is to reach mass adoption as means of exchange. And what matters most is the purchasing power.
Even the most stable fiat currencies lost at least 50% of their purchasing power in just the previous two decades, with inflation levels the lowest in modern financial history.
Satoshi Created Sound Cash
Twenty years ago, the internet was still in the beginning, yet it didn’t take many years to achieve mass adoption.
Throwing cash on our screen didn’t seem to do anything. Our banks were failing massively to accommodate e-commerce, and right about 2008, a great recession struck our markets. Banks went down and funds were seized. Trust in a corrupt and unstable centralized financial establishment was also lost.
Satoshi created Bitcoin as a payments network banks would never control. Yet, Satoshi didn’t predict that banks could infiltrate Bitcoin and stall innovation.
In the light of the scalability issues of Bitcoin, a civil war started one that lasted for years and had a detrimental and catastrophic result to BTC as means of exchange.
Even for the absolute “price go up” argument, it would have been better to have Bitcoin as a scalable P2P network able to accommodate billions of users.
This is where BTC failed, and a huge gap in the market was created. Bitcoin moved on with the original intrepretation of the whitepaper in the form of Bitcoin Cash. BTC remained with its destructive tendencies and some vague narrative of challenging gold as a "store of value" asset.
Bitcoin Cash is more than Cash
Bitcoin Cash is the top one in the list of cryptocurrencies with potential for mass adoption.
It covers all the fundamentals of money:
A Decentralized,
Scalable,
Secure & Reliable,
Censorship Resistant,
Permissionless &
Cost-efficient network
with Instant Transactions and
a fixed supply of 21 million units.
Bitcoin cash features everything paper cash also offers but is not restricted only in physical terms. The fixed supply give strength to Bitcoin Cash and eliminates inflation risk in an economy. The current BCH "supply inflation" is 1.8%, and will keep halving every four years.
Instead of adopting a "hodl" and "number go up" mentality, Bitcoin Cash produced and kept developing the network to perfection.
It is now clear it is the Bitcoin that followed the whitepaper. A scalable, powerful P2P network, ready for mass adoption.
Conclusion
The IMF sounded the alarm for cryptocurrency once again. (link).
The glamorous financial institution once again intimidates crypto investors by calling cryptocurrency a threat to financial stability.
Meanwhile, we all know well, the threat to stability in any economy is the IMF itself, with various interventions supposedly made to stabilize economies, but acting as an intermediary agency to the sell-out of productive parts of troubled economies to tied to IMF private interests, only pushing the economies it was supposed to save to a lower point, lower the population and impoverish nations.
An important argument in the IMF report, though, is this:
“Some emerging markets and developing economies face more immediate and acute risks of currency substitution through crypto assets, the so-called cryptoization.”
We will soon encounter cryptocurrencies used in many economies, with the hot spots being those economies threatened most by financial speculators and those that, while having very little fundamental issues, are going to become the new scapegoat, the next Portugal, Ireland, Greece and Spain.
Bitcoin Cash is money, though, no matter what any economist suggests about cryptocurrency.
It may be volatile, but it rises again. The fiat chart is instead the one that will always decline in value losing purchasing power over the years.
I prefer a currency that will recover and after decreasing for a while, will grow again in purchasing power, rather than any government-controlled fiat, that will only keep losing its value with time.
Images:
Lead Image Source: Unsplash
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Following you posts has opened my eyes to the value and importance of BCH. You are a darling 😘