Why bitcoin will replace Fiat money

For anybody not a secret that the pandemic COVID-19 caused significant damage to all the possible financial markets, including cryptocurrency. As a result, there was a rise in the cost of precious metals such as silver and gold. But in this situation most affected the traditional currency, as investors found their refuge in the American dollar.


If we consider the situation with a shared hand, the strengthening of the American currency will lead to economic rise of the United States, but other countries will be a number of problems with their currencies. A similar statement was published on the official website of the IMF. Experts point out that the US dollar is currently the growth leader, so if the rate will continue to rise, which will reduce demand of imported goods due to high prices for their imports.


A good half of the investors indicates that to solve a significant share of the problems associated with exchange rates will allow blockchain technology. A couple of days ago Vitalik Buterin, who is the Creator of the platform to create decentralized online services have focused on its platform Ethereum, so it the majority of market participants will be able to hold a neutral transaction, thanks to the remote registry.


The transfer of digital money greatly exceeds the usual operations with government currencies, through the use of smart contracts and high transaction speed, which is missing part of costs. But not looking at it, no digital currency can become an alternative for the same American dollar, due to the unstable exchange rate and lack of the financial regulator.


Experts believe that bitcoin and other altcoins, it is possible to use exclusively as a market asset that allows you to bring a significant asset due to its volatility. Moreover, the global economic leaders and refusing to accept digital currencies, indicating that they can stimulate money laundering and other illicit activities.


In addition, if the transactions with cryptocurrencies will start to happen at the state level, the number of restrictions will be automatically removed, which will reduce their cost. That is why the U.S. dollar will be a long time to stay in the position of the first calculation units around the world. It is logical to assume that the American government be interested in further monetary easing in order to support communication with most countries of the world and continue to approach the regulation of digital money.

23 July, 2020

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