People often talk about crypto’s volatile nature and instability when it comes to pricing. In countries prone to economic instability where their currencies are failing crypto can be a safe haven though. Crypto could just be the antidote for curing rampant inflation and flawed monetary policy. Ask the citizens of Venezuela who have had to endure economic crushing times as their Bolivar’s value falls like a rock. Despite president Maduro’s frantic moves to combat hyperinflation, his citizens are still crying out since most of them have been financially ruined. Keeping this in mind block chain’s head of strategy, Xen Baynham herd pointed out how digital assets can replace centralized fiat currencies.
People in countries worst hit by inflation such as Venezuela, Turkey, Zimbabwe, and Iran are seeing their life savings go up in smoke. Stable digital assets that are universally acceptable are therefore needed since people in these countries lack stable fiat currencies. The assertion that crypto can replace local currencies is supported by the fact that Bitcoin is currently outperforming three government issue currencies despite the fact that crypto prices have plateaued for several months. People in hyperinflating economies would rather put their hopes in Bitcoin other than put their hopes in their ailing currencies. This is despite the fact that Bitcoin has tumbled from 17,000 dollars to 7,300 dollars since the beginning of this year.
This explains why Venezuelans and the Turks are actively seeking cryptocurrencies as a way to preserve their assets as well as trade without a government intermediary in Fiat assets. The big next step and the great challenge now is making crypto universally acceptable and accessible to all in the world. although the US dollar and crypto have gained traction in hyperinflation prone areas like Venezuela and most recently, Turkey, popular crypto entrepreneur, Kim.com is of the opinion that the dollar is about to lose its value significantly.
Kim who is also an anti-government commentator encouraged people to stack up on crypto as well as Gold in order to cushion themselves from the next economic crash, in a tweet that went viral. Most financial commentators would put this notion, but with the US Federal debt piling up now more than ever, there is an increasing likelihood that the US government may just default on its debts. If this were to happen, then hardcore crypto enthusiasts who have for long been predicting financial anarchy will have a field day. The collapse of the financial system as we know would pave the way for total cryptocurrency adoption.
