Money did not exist when exchange evolved to become an aspect of humanity’s first economic system, nor will it persist when there are minimal benefits of using it as a medium of exchange and store of value. That time is approaching far quicker than traditionalists care to admit.
The truth is that our evolution to a purely cashless society is almost complete. I rarely carry me nowadays, I can count on one hand the number of times I have had cash in my wallet in the last three years. Paper cash and metallic coins are prehistoric.
That is what those who carelessly brandish cryptocurrency a bubble fail to understand. However, money doesn’t care what you think. It is basically a means of exchange and when its utility is exchanged with something more effective, it will become extinct. Currently, it is a protected species with a few purists trying to revive it. Unfortunately, the poachers are pulling down each pillar that strengthened the system one by one.
Soon it will fall
With Fiat valuations no longer tied to any commodity- with its price being completely independent and its valuation subject to what we all think it to be- give me one genuine and serious argument that convinces me Fiat is not a bubble.
State a rational reason explaining why if we stopped believing in the value of paper money today it would be worth anything tomorrow. Without resorting to the argument of historical precedent, the size and scale of central banks or the promise these financial institutions have made to maintain a certain valuation what do you have to argue against?
Basically, it is still an issue of trust and belief. This compels you to think that there might be a technological solution that forces a level of trust and believe that is inconceivable in a human-led system.
Your argument might still be that cryptocurrency is a bubble, but I have offered you the perspective that all money is a bubble. It is a result of our beliefs tied to our hope that its value will remain. Ditto stocks, shares, and bonds.
Money is, and has been in existent for the last three decades, an intellectual concept based on humanities trust in Governance- but trust in these institutions is at a historic low. We do not trust for the reasons they give for the policies they make, they are incentives to act in our best interests or their ability to deliver a better future.
Cryptocurrency is not just the future because that is what a dedicated band of dreamers would have you believe. It is the future because it is a new operating system for a decentralized world.
It is the future because it takes back control of the things we are most dependent on for us to subsist. It is the future because it is already here making difference in how we act. Bitcoin has empowered a whole population of Venezuelans to have an alternative to crippling inflation left unchecked by corruption.
No longer do we have to trust a government to reign over us and carelessly impose dangerous monetary policies which we must embrace.
No longer must we accept situations of austerity forced upon us because of government intervention in financial collapse where there was no punishment for any of the individuals who caused it. No longer is our future dependent on the whims of governments.
What Price do you Place on Control?
What price would you put on trust programmed into an immutable ledger where those participating have the keys to how the platform develops? Unilateral arbitrary policy making is replaced by consensus.
If you don’t comprehend how Fiat money works, you are not eligible to judge whether cryptocurrency will be successful or not, period. Likewise, if you don’t understand the mechanisms of mining, the underlying technology that powers cryptocurrency or the economics of scarcity, you aren’t qualified to tell anyone why it is a revolution.
So educate yourself and understand why things are changing, and appreciate the technology behind the revolution. They can positively affect the progress this new system can make. Otherwise, you are just another uneducated quack speculating to make a buck doing more damage than good. With all that being true, if you believe in cryptocurrency, let the market come to you. Understand that the success of the system is contingent on an unwavering belief that throughout history, innovation has always disrupted what currently exists.
If a system is better, exponentially so, then nothing will ever be able to stand in the way of its progress. For the same reason, Google destroyed Yahoo, and Facebook vanquished MySpace, cryptocurrencies will destroy money.