08.11.2017 Over time, the currency will replace the dollar

Over time, the currency will replace the dollar

Scientists predict financial collapse of banknotes

According to Jim Reed, the leading strategist at Deutsche Bank, it is cryptocurrencies which will allow people to survive the global financial collapse. Now the basis of the financial system is the US dollar. However, a constant printing of fiat money can disperse inflationary processes until a complete collapse.
Reed sees a salvation of mankind in the development of cryptocurrencies as the only alternative to fiats. He will prove his opinion by saying that blockchain is a decentralization and the absence of any state control, and the value of cryptocurrency is regulated solely by the balance of supply and demand.
Perhaps, cryptocurrency is a natural evolution of fiat money, and when a real formula of exchange will be found, banknotes will sink into oblivion.
Jim Read’s view on the future of fiats is shared by Alexei Zenkov, the founder and head of the international project Mining Now.
He notes that the rules of blockchain game cannot be changed without the approval of the majority of the community, and all decisions can be made only on the basis of consensus – the agreement of half of the participants in the generating capacities.
“You cannot change the rules of new coins generating,” Zenkov explains. – The most illustrative example is the network of bitcoins, where the number of coins is initially limited, which excludes any possibility of inflation. Unlike usual currencies, where the only issuer is the state, which at any time is able to make any amount of fiat. ”
However, the leader of the project Mining Now notices that both cryptocurrencies and fiat ones are not confirmed by any tangible asset, e.g. by gold. Nevertheless, the first ones are supported by a demand. And since in the majority of cryptocurrencies a number of coins is limited, it guarantees a steady demand and, as a consequence, a rush increase in the exchange rate.
“Undoubtedly, it cannot be said that the existing cryptocurrencies will save humanity from the financial apocalypse. After all, today the 15 largest mining pools control 90 percent of the generation capacity in the network of bitcoins. And this creates a danger for the idea of decentralization of cryptocurrency, – Alexei Zenkov shares his views. – We will observe one of the stages of the struggle for the future of blockchain already in November 16th, when a new hardfork of bitcoin is planned. However, the technology of blockchain can really become the basis of the financial system in the future, and any of newly created cryptocurrencies will take on itself functions of a reserve world currency, replacing the US dollar.”