Ever since the arrival of leading cryptocurrency Bitcoin on the monetary scene over a decade ago, financial experts have speculated whether this new virtual currency might one day supplant the primacy of nationally-issued sovereign money. Due to the transformative power of its distributed ledger, or “blockchain” technology, cryptocurrencies like Bitcoin have been able to bypass the US dollar-dominated central banking and credit system by providing a low cost peer-to-peer money transfer alternative. But is it enough to tip the global scales?
While the crypto’s global market share is still small in relation to the overwhelming scale of various sovereign currencies in circulation, it still has many of the attributes necessary to ascend as a serious contender. Perhaps all that is missing is some additional weight, or backing required to give the currency the stability to weather the kind of volatility in the crypto markets which make it unreliable in terms of price. However, some experts are still skeptical as to whether this is ever possible to achieve in its current form due to certain structural realities in the economy that currencies like Bitcoin simply cannot adapt to. One possible solution could be a gold-backed cryptocurrency, the likes of which are being proposed by China.
Still, crypto advocates believe the juggernaut is already in motion and that mass adoption is a fait accompli.
RT International reports on a recent segment which aired on its financial program, Boom Bust…
The world could be potentially on the brink of another financial crisis, but the rise of cryptocurrencies could become a hedge against recession, according to Nolan Bauerle, Director of Research at Coindesk.
He talks to Boom Bust about the future of crypto, saying that “A lot of bitcoin people have been talking about this exact scenario since 2010.”
There was a private issuance of money before the Federal Reserve was established in 1912 when companies and banks issued their own currencies, Bauerle says.
Watch their segment on cryptocurrency:
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