Useful News

Bitcoin is at a tipping point and could become the currency of choice’ for global trade?

With the economy reaching an increased point of uncertainty, retail and institutions are now choosing to buy Bitcoin. What does this mean for the future of global trade?

After the second world war came to an end, a large number of countries came together and decided to use the US dollar as their choice for global trade. With oil being priced in USD, and USD being paired with gold, the concept was simple – every currency in the world is directly or indirectly linked with a store of value that has survived through the millennia – gold.

What many people don’t know, however, is that this concept stopped half a century ago. Since 1971, the US dollar is no longer paired with an equal amount of gold, and its use is now purely based on trust.

Naturally, this move created an unsustainable ability to create money out of thin air, an opportunity which the US took advantage of, becoming the largest borrower in the world. Money backed by nothing has never survived in the long term, and there is no reason why things should be different now.

This is exactly why we wrote this article. In the next few paragraphs, we explain why Bitcoin will almost inevitably replace gold, becoming the foundation of our future economy. What seems utopic to some, seems to be already starting.

Institutions and governments need a Bitcoin strategy

Institutions seem to be ready to adopt Bitcoin. Over the past year, the pandemic made it clear that we can expect large inflation on a global scale, most of which will play out over several years. Naturally, this led to sound financial planning by companies with large cash reserves, a move that eventually led them to discover Bitcoin.

The first large institutional investor to publicly announce a Bitcoin purchase was Michael Saylor of Microstrategy. The software company owner mentioned that soon enough every company will need a Bitcoin strategy to survive the much-dreaded decline of our economy.

Shortly after his purchase, many institutions followed suit. This includes names like Square, Tesla, and others.

Governments are no different. While some seem to embrace the technological shift towards virtual money, other countries ban anything related to it in fear of their currency collapsing. There is no better example than Nigeria. The country which banned Bitcoin a few weeks ago is now seeing a rapid spike in peer-to-peer trading, usually trading at a large premium.

<iframe width=”560″ height=”315″ src=”https://www.youtube.com/embed/C6WUb-U4qSY” frameborder=”0″ allow=”accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture” allowfullscreen></iframe>

But not all countries are afraid. Some are using their reserve energy resources to mine Bitcoin, while others are rumored to employ hackers that target low-authority exchange platforms. Countries that are already into the Bitcoin game include Venezuela, Russia, Argentina, North Korea, Iran, and others.

With global adoption comes adaptation

It is now easy to see, especially if you are an investor with more than one market cycle of experience, that Bitcoin is finally starting to be taken seriously. While the US is still hiding behind invalid statements of terrorist funding and investor risk, other governments are already using Bitcoin’s technology to create digital currencies of their own. China and its digital Yuan are a good example of this.

<iframe width=”560″ height=”315″ src=”https://www.youtube.com/embed/s4tSP9-o7ZQ” frameborder=”0″ allow=”accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture” allowfullscreen></iframe>

In many ways, China is years ahead in terms of technology compared to the rest of the world. They seem to adapt to the direction of the world faster, which increases their potential of becoming the next global superpower.

What they have realized that the rest of us don’t is that a failure to adapt is economic suicide. Everyone needs to digitize their national currency to hop on to the new trend which can prove to be elemental in the survival of the country in the future. Those that have already adapted, like Microstrategy (albeit smaller in scale) are already seeing incredible returns. Tesla is another example of this. In just 1 month of buying Bitcoin, the company made more profit than their cars have made over a whole calendar year.

Closing

The next frontier of economic innovation will flourish together with the price of Bitcoin. As the cryptocurrency becomes stronger, it becomes ever more important for the global economy. And for us, this presents an unprecedented opportunity. Governments, institutions, and retail investors alike can now consciously take a position in this revolution and secure themselves in case of a hyperinflationary collapse of the US dollar. Because when this eventually happens, the world will seek to invest in sound, scarce and reliable money – in this case, that is Bitcoin.

Support Conservative Daily News with a small donation via Paypal or credit card that will go towards supporting the news and commentary you've come to appreciate.

Related Articles

Back to top button