Posted 10 months ago | by Ben Armstrong
COVID-19 and the Future of Independent Money
Money is looking stranger all the time. The COVID-19 pandemic has spread rapidly across the globe, and the world economy is at its worst point since at least the 1930s.
Centralized finance looks like it is in a pretty rough spot. The global central banking system is turning to wild ideas to keep the scam alive, which may lead to unimaginable pain and suffering.
Bitcoin may act as a hedge against inflation, but the value of Bitcoin is likely roosted in its utility, and not necessarily a buying stampede. Clearly, both factors may play a role in the future price of cryptos, BTC included.
The Value of Money is a Curious Phenomena
The ongoing expansion of central bank assets will likely lead to many serious consequences, especially more questions about the value of global reserve currencies. This may end up being a big issue for a global economy that is driven by consumer spending.
Asia has been able to rise out of poverty on the back of a well endowed Western consumer culture. Those throngs of idiotic consumers are probably not going to exist after this depression, which puts the entire Post-WW2 neoliberal economic model in the trash can.
A big part of that economic model was a currency system that started at the New York FED and stretched to most parts of the globe.
The massive expansion of the FED's balance sheet will have an effect on the USD, and we can't know to what degree people will continue to trust in a reserve currency that is clearly being used to political ends.
The Crypto Back-Up Plan
It took that world banker quite a while to work out systems like SWIFT or Visa. Now, we can use Bitcoin, ETH, or XRP in exactly the same way, and we can also be far more sure about the total supply of these nationless digital currencies.
We, as a global society, decide what kind of money has value, and what isn't desirable.
The USA, and by extension, the West, has been taking advantage of a monetary system that has given nations the ability to borrow fantastic sums of value from the world, in the form of the Western debt exchanged for real goods and services.
Much like any lifestyle that is supported by credit, the bill will come due, and there won't be any money to pay. In this case, the money that the bill is denominated in may go down with the debtor.