Following the 2008 economic crisis, the UK recapitalization model, pioneered by then-British Prime Minister Gordon Brown, became the European standard and was adopted by other central banks in the euro zone. The total package is estimated to cost about $ 2 trillion for all EU states. It is widely known that European central banks financed the bailouts of most banks by issuing new currency.
If another economic slowdown occurs due to the Covid-19 pandemic in the near future, it is quite possible that central banks will reissue a new injection of currency. This, in turn, will naturally lead to a rapid devaluation of their respective currencies.
Bitcoin, on the other hand, is in short supply and has a fixed supply of 21 million with a predetermined inflation rate, which completely eliminates the possibility of devaluation. As the currency market becomes highly volatile, many countries are likely to experience widespread unrest, some of which could affect the equity and bond markets as well. Ultimately, this will affect international trade and other global payment arrangements between providers. The latest financial slowdown presents an excellent opportunity for the digital currency to replace the US dollar as the world's dominant and reserve currency.
Posted Using LeoFinance