Bitcoins, Blockchains and crypto currencies still are something new for most people. Bitcoins might be quicker and cheaper to use than banks and credit cards. But it will take some time before they are used in Mr Smiths everyday life.
Still, Mr Smith will be very lucky to have the Bitcoin option–some day.
The US Dollar might be strengthening for the moment. But the underlying problems with the US economy are still there. It’s not in balance. And the system as such is not a sound free, self-regulating market.
In Europe, with its common currency, it’s even worse. The ECB is kicking the can down the road, trying to stay clear from new difficulties. But the system–binding the value of money in disconnected economies to each other–is doomed. This will cause new crises until the day EU manage to centralise all economic power to Brussels and Frankfurt. And then, that centralisation will kill off the economy.
The Russian Rubel is weakening. And it’s very difficult to predict where the Chinese economy is going.
Gold might be an alternative. But it has to be traded, stored and eventually turned into some fiat currency anyhow.
Then we have Bitcoin: A virtual currency with a relatively controlled expansion of its volume. Without government interference. And, in many ways, more secure than state fiat money.
It doesn’t have to be a doomsday scenario. It doesn’t have to be the obliteration of the dollar or the euro. And it’s not even about the future.
If people in Cyprus would have had their savings in Bitcoins–instead of euros in the bank–it wouldn’t have been possible for the government to partly confiscate them the last time the euro crisis hit the country. If nothing else, people should learn from this that their money are not safe in the bank and that their fiat money is not protected by the state.
When the next crisis hits a currency (and it will happen, over and over again)–Bitcoin might be the only reasonably safe and useful alternative. It might be the only feasible option for most people. It might be what saves us when politicians, bureaucrats and banksters fucks it all up, again.
/ HAX
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