The modern age is as fascinating as it is frightening. Assessing what a passing trend or fad is, and what a fundamental change in the entire financial world is, is nowhere near as simple as you might think. If someone approached you on January 3, 1999 and said that now is the right time to buy Bitcoin, not only would you laugh sweetly at it, but you would not even understand what that “Bitcoin” is and how it could ever be worth anything. Today, the total capitalization of the Bitcoin network is 203 trillion US dollars.
The central banks and monetary institutions of most major world powers are not too warm about the recent development of privately issued digital cryptocurrencies, but numerous studies and studies commissioned by them on the current state and future development of such financial creations suggest that they do not intend to ignore such large potential disruption of monetary flows.
The cryptocurrency market will continue to grow, with an increasing number of increasingly exotic instruments. The general public will not accept these same currencies as a means of payment, but will see them as media of investment and preservation of value. As a result, an increasing percentage of government money will go out of circulation, which will put pressure on central banks to maintain the exchange rates of their currencies.
The US dollar and the euro will remain the dominant currencies for several years after that, but the Euro will at some point be replaced by a crypto version, with minimal fanfare and under marketing as nothing really changes and with the explanation that paper can still be used in parallel. currency for at least the next 5 years. The US dollar will most likely be the last of the world's currencies to switch to the crypto version, which US financiers will certainly be able to use in a way that no one can even imagine now. The end result of this whole transformation will be, in my opinion, the return of the status quo. Power 48 the world's largest currencies are likely to be shifted in favor of the state that will most skillfully carry out the digital transformation, but despite all advances in technology and all attempts to launch a truly global privately issued currency (although few will always be allowed to exist), the world's central banks the state and power will have majority control over world money flows. And if we are not careful, we as the general population will lose real control over our private money, which will be completely digital, controlled by the state and subject to the inevitable introduction of negative interest rates.