The Monetary Reset – Who Wins?

by | Digital Currencies

The current economic climate is fraught with risks. The stock market is no longer driven by fundamental, share prices are no longer based upon earnings, debts need not be repaid, and promises that can never be kept just keep on being promised. And this is all happening while central banks print with reckless abandon, consequences be damned.

A reset is coming, this is a matter of when, not if. Its a matter of mathematics, a certainty of science. Life will go on post crash, as it always has, but the world that makes it to the other side will be drastically different than the one we live in today.

The biggest change will likely come in the world of finance. Thats where the most money is and will therefore be the biggest crucible for evolution and metamorphosis. Assuming these transformations are as radical as I make them seem, we’ll have to take a couple things for granted:

  • The current dollar based fiat system will implode
  • The yen & euro are not serviceable alternatives
  • The yuan is no substitute…remember, it’s fiat too
  • There will be clamor for a one world currency to rectify the evils of the previous system
It is here that I’m going to make the argument that bitcoin could fill the void of the new age monetary system. And here’s why:

  • Inflation – with supply capped at 21 million, central bankers can’t print bitcoin into currency oblivion
  • Cash Substitute – assuming technology continues on its upward trajectory, paper currency is rapidly going the way of the dodo. Bitcoin’s near instant transactions are a more than capable replacement and system of record for cash transactions of old.
  • Decentralized – Once the current system implodes the public should understand the dangers of centralized money policies. Something governed by mathematics is an attractive alternative.
  • Ease of Use – instant transactions and borderless transfer of value. Seems like a no brainer.
To be clear, in order for bitcoin to become the world’s reserve currency the world would have to experience a true reset and dramatic upheaval from the current state. Only through total collapse can this creative destruction occur. Otherwise the lack of political will prevents tangible change from happening as the current system works for those in power.

While I don’t necessarily look forward to, with bated breath, the collapse of modern society, thinking about possible scenarios helps to emotionally, psychologically, and economically prepare for the future. We all have horses in this race but knowing that this race is coming to an end should be motivation enough to prepare for a very exciting, albeit disruptive, time ahead.