The allure of Bitcoin manifests in several forms. For example, there are those that are drawn to the high-degree of anonymity inherent in its architecture. There are folks that recognize the value held within the creation and maintenance of an immutable transactional record. In the case of this article, there are those proponents that recognize the opportunity to have a truly super-national currency.
“The rest of the world is basically given a pretty bad run by the dominance of the dollar, and I think in the long run it doesn’t help the U.S. either,” he says. “If 70% of the world’s reserves are held in dollars and if 90% of any significant trade has to be triangulated through dollars, whatever the Fed does or doesn’t do is going to be such an overwhelming determinant of what happens to your own monetary circumstances, that it becomes certainly, a less than complete set of tools. And once you move into emerging markets, it’s kind of pointless sometimes. What hope does a tiny country in Latin America or Africa have or even a medium-sized countries at a time like now when the Fed and the ECB and the Bank of Japan are flooding cheap money into the world? You don’t really have a monetary policy.”
While there is no guarantee that a true cryptocurrency such as Bitcoin would prove to be the answer to offsetting larger actors on the world economic stage, but it certainly appears to be a well-established prospective alternative, or in some opinions, a reasonably proven test-of-concept. Creating greater equity in the global markets and standardizing trust in assured transactions moves us closer to financial inclusion in both developed and emerging economies.
Overview by Joseph Walent, Senior Analyst, Emerging Technologies at Mercator Advisory Group
Read the full story here
