The recent influx of ‘easy money’ and the ongoing trade wars have created a problem for fiat currencies. Cryptocurrencies ultimately have the most to gain from the current chaos.The world’s understanding of currency may soon be forced to change as major structural problems continue to define the global economy. Just as the early 20th century saw the dismantling of gold as the basis for currencies, we may soon be on the precipice of a new breakthrough into digital money and cryptocurrencies. As Alex Karasulu, Co-Founder and CEO of OptDyn, told Forbes recently: “The gradual erosion of globalism and the recent rise of trade wars [has applied] added pressure to manipulate fiat currencies.” There are currently trade wars happening on multiple fronts, the most notable one being US-China. However, the ongoing trade disruptions between the U.S.-EU, the EU-Indonesia, Japan-South Korea, and India-Pakistan are all sure to cause significant ruptures in the global economy. Moreover, monetary easing has become a policy in many major nations, like Australia and the United States. The non-existent basis of the current currency market has been exposed in just the U.S-China trade talks alone. Both countries are manipulating their currencies at will to make up for failed trade negotiations. Just recently the Chinese yuan fell to the lowest level relative to the dollar in over a decade. Herein comes the appeal of cryptocurrencies: as people clamor for currencies not guided by agencies and policies, Bitcoin and other blockchain-based currencies will naturally fill this void. As Chris Reinertsen, Chief Marketing Officer of Rhythm Technologies told Forbes: “Bitcoin has been designed to be an eventual safe haven from government-controlled currencies since its inception.” His belief is that, as these currency and trade wars continue, “more and more investors are looking for alternatives to avoid repeats of the last major bear market.” Yet, there is room for skepticism. Would central banks and governments ever allow a decentralized currency to usurp their power, even just a fraction of it, on the world stage? For now, Bitcoin is merely amusing to them. However, there is every indication that in the next few years we will start to see some serious ruptures which will put our monetary institutions to the test. Hopefully, authorities will soon realize that cryptocurrencies, like Bitcoin and Ethereum, are simply ‘too big to fail’ and cannot be stopped. Do you believe that the ongoing currency and trade war will boost most major cryptocurrencies? Can Bitcoin ever become a reserve currency of the world? Let us know your thoughts in the comments down below. Buy and trade cryptocurrencies with a 100x multiplier on our partner exchange, StormGain.
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