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Can Bitcoin Cash (BCH) Fight US Dollar Hegemony 

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1 year ago

In 2009, Satoshi Nakamoto designed the first digital currency, bitcoin. Since then, a new term digital currency has entered people's attention. The total amount of 21 million bitcoins is a decentralized, anonymized, and globally circulating digital currency. It is issued to combat inflation and currency crises. Digital currencies have subverted the right to issue national currencies, but some countries firmly support it, and some countries firmly oppose it. Why?

Dollar hegemony

The U.S. government may be the country that is most worried about the maturity of digital currencies in the world to replace the fiat currency. As the global currency hegemony, the US dollar has repeatedly “looted” the world ’s wealth through the US dollar. Fiat currency.

In the 1980s of Japan, Japan ’s capital expanded wildly, Japanese manufacturing flooded the world, and it had the world ’s largest dollar reserves, becoming the largest creditor nation in the United States. A paper agreement in 1985 doubled the value of the yen against the U.S. dollar, the value of the U.S. dollar depreciated, and the value of the yen increased. That is to say, the US dollar reserves held by Japan have doubled in just three years. At a lower cost, the United States recovered all Japanese dollar reserve. Then the Japanese bubble economy burst, and Japan entered a decade-long economic stagnation, that is, the "lost decade." This is the famous "square agreement" in economic history, and the United States "looted" Japan's wealth for decades through hegemony of the US dollar. The advent of digital currencies has broken the hegemony of the US dollar.

Redistribution of world wealth

Since there is a hegemonic currency like the US dollar, there must be a weak currency squeezed. For example, Japan today, after experiencing the "Square Agreement", Japan may be the country that is most inconsistent with the hegemony of the US dollar. Therefore, Japan is now the country with the best digital currency environment in the world. National legislation protects and vigorously promotes digital currencies. You can buy goods in Bitcoin cash at any time in Japan.

There are also economically underdeveloped countries such as Venezuela, whose national legal currency value is getting lower and lower, and more people evaluate it as a waste paper. In the existing monetary system, they are in a weak state and urgently need a Safe, world currency that is not controlled by other countries. The emergence of Indian digital currency met their needs, and now they have more than 10,000 stores supporting Bitcoin Cash transactions. They legislated to support digital currencies and entered the market early to hoard coins in the hope of redistributing world wealth.

BCH Mission

Currently BCH will have a greater impact on fiat currencies. BCH's development vision is a digital world currency for payment circulation, while BTC prefers digital gold for stored value hedging. At present, many merchants and enterprises have accepted BCH payment.

One of BCH's missions is to protect your property from inflation. Simply put, inflation means that over time, your money becomes less and less valuable, and you will buy less with the same money. A century ago, you could buy 4 pounds of sirloin steak. For the same dollar, you can only buy 4 movie tickets for half a century, but this dollar in the next century may even buy a cup of coffee No. And now inflation is happening in Germany, Hungary, Peru, Venezuela, Zimbabwe and some other countries. And Bitcoin Cash can protect you from this risk. In fact, Bitcoin Cash will appreciate relative to fiat currency over time, and you can buy more things. 

BCH's second mission is to decentralize your assets and not be controlled by third parties. When you swipe a credit card, there are actually many third-party intermediaries that charge you money from transactions. When you make a bank transfer, the bank actually acts as a middleman for the transaction. When there are middlemen, they have the power to control your money. Banks in Cyprus confiscated more than 30% of depositors' money in 2013 to help resolve their own problems. A similar incident happened to more than 10 million people in Greece in 2015, when banks were closed and ATMs were running out of money. Many people in China hold RMB in their hands because they do not believe in banks. Some people eventually rot because of improper storage methods. As a kind of peer-to-peer electronic cash, BCH controls its own wealth by itself, and there is no middleman to stop your transactions. Neither the bank nor the government can control your assets. Bitcoin Cash has truly controlled money in people's own hands.

This digital revolution is not only a game between new digital currencies and fiat currencies, but also a game between nations. Everyone can be a participant or even a decision maker. Today you own a BCH and maybe you will occupy 1/21 million of the world's wealth in the future.

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Written by   2
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