Sentiments are not bad thing but only sentiments cannot provide us the desirable things. Every crypto enthusiastic would like fiat to disappear and cryptos to rule but is it so easy? Let us examine it.
In old times every country had money in the form of gold or silver coins but now the global economy primarily relies on the US Dollar. As US dollar is the reserve currency of the global economy, it makes its impression on every economic and political affair of the world. World’s dependency on USD has resulted in economic upheavals time and again. Don’t forget recent economic crisis of 2008 which affected many parts of the world owing to the US financial market crisis.
As US dollar makes the US the world super power, the US always tries to maintain its status. The US can take any step to maintain dollar’s global reserve currency status even if it may result in wars and atrocities in many parts of the world. Will the US allow this system to be disrupted?
Banks earn through interest earned on loan and fund transfer fee. Will they allow cryptos to ruin their business?
Every government controls people as it controls the money which is the prime driving force behind human activities. Would government allow cryptos to lose their control on masses?
Answer should be no. Fiats are backed by governments and people trust governments more than anything. So, the path of success for cryptos is not easy at all. Cryptos have potential but first they have to overcome their own shortcomings. I will write a post on this matter in this week in which I’ll try to clear the matter.