Why cryptocurrencies will never survive
Cryptocurrencies are all the rage right now… you know Bitcoin? Most people do not know what Bitcoin actually is or how it works, either way here is why cryptocurrencies will never survive.
The short answer
It’s all about control.
The long answer
The central banks of the world (i.e. the US Treasury, the European Central Bank, the Bank of Canada, etc.) have control over the money flow. They can flow more money into the economy or take money out. The central banks are the key players who are calling the shots; and the government for that matter.
Cryptocurrencies on the other hand, through the blockchain technology, is not controlled by one organization or person. Blockchain involves many people, hence a chain. Everyone is a key player within the chain, if a link in the chain fails, the chain fails as well.
History of control
As far back as history can go, currencies were controlled. Kings and Queens of great past civilizations had their faces put on gold coins of various sizes. Each kingdom had its own gold coins. When they found out the edges of the gold coins were being cut the kings and queens took action to add distinct markings and cuts to the edges. If the markings or cuts were missing someone would know the coin is not worth it’s full value.
Modern day governments think and act the same way. How many times have we’ve seen paper money evolve? The “paper” is now some type of plastic and there are more clear areas with a hidden image than we could imagine! As counterfeiters find new ways to make fake money the governments are quickly cracking down. I’d say now a days the governments are a head of the game!
Crackdown on cryptocurrencies
Governments and their tax agencies are cracking down on cryptocurrencies. Governments are cautioning us not to buy due to the high risk of being defrauded. Many of these cryptocurrencies have signs of being a huge bubble and are extremely volatile. If you thought the last week of the stock market was volatile take a look at the price charts. And to boot do know what even three of those cryptocurrencies are! There are 25 of them! That’s like Europe before the Euro and the European Union, imagine travelling even just an hour away and having to haul out another currency to pay for things! No thank you.
Because of the volatility and lack of rules surrounding these cryptocurrencies, tax agencies have been in a mad scramble to come out with how these things are taxed. As cryptocurrencies can be used in a variety of ways, there rules are not simple.
Central banks and governments will not lose their control over the money flows of our countries. They have the power to enact law to make cryptocurrencies illegal. Despite numerous attempts for countries to leave one of the most power controlled economical areas, the Euro zone, the Euro zone has still kept its control over the money. If 19 countries can agree to use the same currency despite their vastly different economies and countries like Canada having their own currency despite how closely tied its economic trading is with the United States, how will any of the 25 cryptocurrencies survive?
Did you think the above article was interesting? In case you missed it check out Why Gold is Still King!