🔰Finally Even the Bankers Are Skeptic On the Future of 'Fiat Currencies'🔰
Fiat currencies always have and always will fail. For those who don't know what is a Fiat currency, it is a currency that is issued by a government and it is declared by that government to be a legal tender meaning that's the currency that should be used within that country's borders for domestic commerce. Just because the government supports it doesn't mean that it's actually worth anything, doesn't mean it has any intrinsic value.
Jim Reid, a strategist at Deutsche Bank, seems to be aware of the problems affecting fiat currencies as we know them today. In his view, it is possible that fiat money will disappear very soon. The reasons for his somber outlook are not hard to find, first among them being increased inflation. New money is printed and brought into circulation far too often these days. Helicopter money, as this activity is known, simply isn’t sustainable over the course of multiple years.
Moreover, Reid points out that fiat currency is no longer backed by anything that has value. Until a few decades ago, every fiat currency bill or coin was backed by gold. Ever since that changed, fiat money has represented nothing more than an IOU by a government or central bank. This empty promise to adhere to the value of a given bill or coin has been widely accepted as a means of exchanging value, even though it really shouldn’t be.
Saving fiat currencies from their demise will not be easy by any means. There is no viable countermeasure to inflation, and the damage caused over the years can’t be undone either. Inflation is slowly spiraling out of control, and loose policies, overprinting of money and extensive leverage only make matters worse. When push comes to shove, the end of paper money and physical coins will occur a lot faster than people may anticipate.
Moreover, a financial collapse only seems to be a matter of time right now. While things may not get out of hand in any spectacular manner right away, it is all but inevitable that fiat currencies will disappear. Cryptocurrencies and digital assets are the likely choices to replace fiat as we know it. This includes central bank digital currencies, although new forms of money not controlled by the government or banks will eventually win over a lot of people.
I just hope other bankers also follow the suit and come out in open and be honest about the hollow fiat currency system. Cryptocurrencies and their underlying blockchain technology have built a strong case for them and it will be interesting to see how the central governments are going to counter the unstoppable emergence of cryptocurrencies.
Reference: Link
Crypto is the new currency, everyone will realize it sooner or later
True that
Well it's a hard pill to swallow for bankers because admitting that the fiat currency system is flawed and that we should all move to cryptos means that they're advocating for the destruction of banks and by relation, their own jobs.
Yes I agree with you, we need more honest bankers like Jim Reid to open up about the fiat currency system.
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by vj1309 from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews/crimsonclad, and netuoso. The goal is to help Steemit grow by supporting Minnows and creating a social network. Please find us in the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
This post has received a 0.35 % upvote from @drotto thanks to: @banjo.
img credz: pixabay.com
Nice, you got a 10.0% @peaceandlove upgoat, thanks to @vj1309
Want a boost? Minnowbooster's got your back!
The @OriginalWorks bot has determined this post by @vj1309 to be original material and upvoted(1.5%) it!
To call @OriginalWorks, simply reply to any post with @originalworks or !originalworks in your message!