Cryptocurrencies Vs. The U.S Dollar and The Euro

Well people Bitcoin did it, like it or not Bitcoin did what they set out to do and now what’s going to happen is if governments all over the world begin to attack crypto currencies there is a good chance there will be civil unrest. In zimbabwe as an example the government as of May 2018 is doing it’s best to limit the usage of Bitcoin, Venezuela on the flipside have launched their own crypto currency in hopes  people will buy in. Why this should matter to you is that it shows the relevance of Crypto Currencies and it also shows that it’s a simple solution to the financial woes of the world today.

Now as many people know not every cryptocurrency is legitimate, however many like Bitcoin and Ethereum are legitimate and the truth is as long as there are about 10 legitimate cryptocurrencies the central banks will have to start competing. A lot of people are having a hard time understand how crypto will replace fiat currencies when against fiat currencies cryptocurrencies look very volatile, well you know what else is very volatile against fiat currencies? Gold and silver.

I think people aren’t understanding that what could actually be happening is that fiat dollars are volatile against crypto currencies. Key thing to understand is that money is the evolution of barter and the fact that barter is being controlled by central bankers and fractional reserve banking is a sign that if an alternative currency using a superior yet similar method to digital money creation what could actually happen is people will start to question the relevance of fiat currencies.

What this means is that central banks are soon going to be faced with the very real reality that they have to raise interest rates faster than they’re doing it now. Higher interest rates will suppress the growth of crypto currencies and the more the Crypto Currencies gain power the more the central banks of the world will have to raise rates and leave them there. The economic crisis coming our way will not affect main street, it will affect people dependent on an ever rising stock market.

What I mean is people dependent on unearned income will be hurt most by the economic crisis heading our way. People and entities dependent on debt will be hurt, however higher interest rates will actually lead to deflation on mainstreet. Which ultimately means a reset in pricing. The key thing here will be the actual crash itself. In my view Donald Trump is the perfect person for the crash to happen too. The stars are aligned and my gut feeling is that crash will happen in Trump’s second term in office. In the meantime cryptocurrencies will continue to spread globally and this will pressure the federal reserve to continue to raise rates.

There’s this weird argument I keep reading about regarding Gold and Cryptocurrencies, people feel like they have to choose one or the other. No, both Gold/Silver and Cryptocurrencies are perfect indicators of why central banks will have to raise rates because if they don’t Crypto Currencies and Gold are going to skyrocket, the difference being that Gold hasn’t had a run like Crypto has, and what you could start seeing are businesses buying up Cryptocurrencies to purchase precious metals like silver gold to fund their businesses and then passing the costs down to the consumers using fiat money.

My point here is Crypto Currencies with every passing day are backing central bankers into a corner. The longer governments wait to do anything about cryptocurrencies is added pressure for the central banks to raise rates.

Interesting times ahead.