Ask yourself, why does the world need multiple currencies? There’s actually no real reason. The only reason we have a U.S. dollar and also a Canadian dollar is that in 1770 the people in Canada decided not to join the U.S. So an artificial border created two currencies. It’s all dictated by artificial borders.
In the past, an ounce of gold would be accepted almost anywhere in the world. In that sense, unbacked modern fiat currencies are a step backwards.
But in cryptocurrency world, there are what I call “Use Borders.” Every currency is defined by its use. For instance, Ethereum is like Bitcoin but it makes “smart contracts” easier. Contract Law is a multi-trillion dollar industry so this has a huge use case. Filecoin makes storage easier. It’s a $100 billion industry. And on.
***
We are witnessing the evolution of money.
First there was barter. Then there was gold. Gold first solved many of the problems of barter (reducing thousands of exchange rates to just a few). Then there was paper money/bank money/fiat money. Paper money solved many of the problems of gold (e.g. as a store of wealth that you can travel with, or as a transaction mechanism for large transactions).
Now there are cryptocurrencies. And cryptocurrencies are solving major problems in fiat money (no centralized control, lack of human error, no forgery, privacy, etc etc).
***
Cryptocurrencies are currencies with no government in the middle. No bank in the middle. No organizations in the middle keeping track of all your payments, or taking advantage of your spending so they can invade your privacy, and on and on.
Cryptocurrencies solve trillions of dollars’ worth of problems, which is why they will be worth trillions of dollars one day.
Consider the potential:
There is currently $200 trillion in cash, money and precious metals used as currencies in the world. Meanwhile, there’s only $200 billion in cryptocurrencies. Cryptocurrencies are eventually replacing traditional currencies.
So that $200 billion will eventually rise to the level of currencies. And probably sooner than we can imagine.
***
https://dailyreckoning.com/cryptocurrencies-could-be-worth-200-trillion-one-day/?curator=alphaideas&utm_source=alphaideas
In the past, an ounce of gold would be accepted almost anywhere in the world. In that sense, unbacked modern fiat currencies are a step backwards.
But in cryptocurrency world, there are what I call “Use Borders.” Every currency is defined by its use. For instance, Ethereum is like Bitcoin but it makes “smart contracts” easier. Contract Law is a multi-trillion dollar industry so this has a huge use case. Filecoin makes storage easier. It’s a $100 billion industry. And on.
***
We are witnessing the evolution of money.
First there was barter. Then there was gold. Gold first solved many of the problems of barter (reducing thousands of exchange rates to just a few). Then there was paper money/bank money/fiat money. Paper money solved many of the problems of gold (e.g. as a store of wealth that you can travel with, or as a transaction mechanism for large transactions).
Now there are cryptocurrencies. And cryptocurrencies are solving major problems in fiat money (no centralized control, lack of human error, no forgery, privacy, etc etc).
***
Cryptocurrencies are currencies with no government in the middle. No bank in the middle. No organizations in the middle keeping track of all your payments, or taking advantage of your spending so they can invade your privacy, and on and on.
Cryptocurrencies solve trillions of dollars’ worth of problems, which is why they will be worth trillions of dollars one day.
Consider the potential:
There is currently $200 trillion in cash, money and precious metals used as currencies in the world. Meanwhile, there’s only $200 billion in cryptocurrencies. Cryptocurrencies are eventually replacing traditional currencies.
So that $200 billion will eventually rise to the level of currencies. And probably sooner than we can imagine.
***
https://dailyreckoning.com/cryptocurrencies-could-be-worth-200-trillion-one-day/?curator=alphaideas&utm_source=alphaideas
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