Whether the Chinese Yuan becomes the first global reserve currency before the IMF can steal their thunder (and their gold), one question remains – what about Crypto Currency, like the increasingly popular Bitcoin?
not be a full collapse, yet a devaluation of unprecedented proportions.
Yet, regardless if the Yuan prevails as the world’s strongest globally traded currency, it’s still a fiat currency at heart and simply cannot hold the same value – not for China, and certainly not for the rest of the world. That’s why a lot of economists believe that the final showdown between globally traded currencies will be between Gold and Bitcoin.
If you know how the blockchain works, then you already know how easy it is for Bitcoin “miners” to simply build a room full of massive computers to essentially make money for them while they kick back and watch their digital wallets get fatter and fatter. However, that creates another massive problem for the world, one which no amount of Bitcoins could fix.
The technology the professional Bitcoin miners use to make money use an enormous amount of electricity. Plus, they’re always in a race to scale up the mining process with new hardware that consumes more electricity. While once an exciting and promising new form of digital money, it’s clear that Crypto Currency is yet another form of fiat currency that will inevitably lead to more problems for the world’s economy. Simply put, Bitcoin is not only unsustainable – it’s potentially hazardous to the environment.
Bitcoin may look like a very promising alternative to paper money, yet the fact of the matter is that Bitcoin itself is a fiat currency.
