The Future of Digital and Fiat Currencies

0 8
Avatar for Scotty17
3 years ago

I missed buying Bitcoin when it was $300 a coin, and instead bought a luxury item. Bad decision. When I was thinking about it today, I wondered about the future of digital and fiat currencies and this is what I believe will occur in the next 5-10 years, tops.

Several central banks are already in the process of studying the issue of issuing a digital currency. These include the United States, China, Sweden, India and the United Kingdom. More are likely doing the same, on the cool.

What came to mind was whether or not a universal central bank digital currency (CBDC) could sprout up in our future. The answer is a definitive yes. But first, let's examine what a fiat currency is for our background.

By definition, fiat money is a type of currency that has no real value other than what the issuing government says it's worth. Read that again and let it sink in. In other words, the value of fiat currency, that is, the cash in your pocket, wallet or purse, is dependent on a government's creditworthiness.

Some 50 years ago or so, currencies were backed by gold or silver, but governments went off both standards, hence they print and we spend/use fiat currency. Notably, China was the first country to utilize fiat money as far back as 1,000 years ago.

Based on the above, ask yourself this: are digital currencies also fiat? If you answered yes, you are correct. It would simply be a method of getting rid of cash and introducing a CBDC as an alternative. Not too bad of an idea unless you're working under the table (off the government grid), right? Well, yes and no.

With governments adopting CBDC's, it would be virtually impossible to avoid paying taxes to Caesar. All of your legal tender in the bank would be converted into a CBDC. Good? Let's not be too quick to make a judgment yet.

One thing is certain about a government CDDC: you would be tracked, like it or not. The government would know what you spend, on what, and where. Yep, there goes your privacy! And guess what, the advent of CoVid is speeding up the transition of CBDC's.

Thankfully we have cryptocurrencies! Nobody is in charge, and all currency is controlled by math. Sweet. The genius behind this is other world. Crypto is in its essence of true democracy in action. Anybody, regardless of race, gender, ethnicity etc. can jump in.

Here's a dilemma to consider, namely: can a government seize your wallet. They already do when they tax you. Aside from that, yes they can. Back in November of 2020, the United States seized over $1 billion in Bitcoin from a notorious hacker. If "they" can do it to one person, it may be possible to seize everyone's coins in the future when the technology is available.

But wait, before you go paranoid, let's think about this. We all have a key that locks others out. The only way that any government can seize our wallet is by coercion. In short, we're safe for now.

What should we do? For now, don't be worried, but keep in mind that digital currencies are ever-evolving and CBDC's are the definitely in our future.

In closing, my only concern at the moment is this: as a futurist, I believe, as do many, that an eventual one-world currency will come into play. (We will discuss this in another post if there is interest.) Suffice it to say that if and when this occurs, all CBDC's will be held by that one-world government. We will all be "equal" in the eyes of this government. But we will be slaves to the government.

In the end, invest wisely now and get educated about the money system and it it work and evolves. Make your money, hide your wallet, and don't brag about you success. Good luck!

1
$ 0.39
$ 0.39 from @TheRandomRewarder
Sponsors of Scotty17
empty
empty
empty
Avatar for Scotty17
3 years ago

Comments