In 1988 The Economist wrote an article predicting in the future, 2018, that there would be a universal world currency used around the world. As amazing as the article was written in 1988 the reasons for supporting a world currency was in itself exemplary.
Link to story with commentary here.
The "phoenix zone" that will replace all central banks will likely be some form of governance divided among many people across the globe. There is no intention for debt to be forgiven when a new global currency arrives and it is likely to be coming sooner now than in 1988 as country's debts are heavily weighting on developed countries.
Gone are Reserve Currencies and in is a Universal Ledger
The US dollar reserve currency will hinder as its debt increases as a percentage of world debt. The country's debt has accelerated in recent years and covid19 only accelerated the process. This burden will only undermine the currency's value.
To think it is not a problem for up and coming countries that are growing in GDP at is fastest rate in a century such as China is an understatement. China also has accelerated in recent years on its debt.
When debt hinders economic progress there will be no way out. A ledger from a cryptocurrency use by all countries will reassign each country's debt so that their borrowing and lending will be share across the globe. No one country can escape from excessive spending without facing consequences.
Free Borders and Free Trade
The world is getting more open when it comes to borders and trade. Through the history we have seen this with formation of the European Union to trade agreements. Multilateral Free Trade Agreements among many countries across the globe. An easier way to do exchanges will likely come in the form of a universal currency.
With the onset of Covid19 many countries locked down their borders to avoid virus spread. As the virus is contained countries are opening their borders again and allowing travel again. The reality is today versus 30 years ago is that many countries welcome visitors and settlers. The advancement in traveling technology has also allow people to go to many more places and in shorter travel time than 30 years ago. This will only increase as time passes.
With loosen rules and regulations to traveling many countries will be jointly effected economically and socially. We have seen this with Covid19 where it originally started in Asia and spread all across the globe to the US. The trade impact where Asia stopped producing while later on US was unable to fill Asian's demand do to country wide closures shows how integral the countries around the world are.
Where BTC comes in to Play
The demand for BTC is real and we can see it as btc is about to reach $60k USD. Many countries have users in demand for the currency and whether it is accepted by all or none end users will have the final say as to what they are willing to pay for BTC. Right now the demand and usage of the crypto and altcoins in general are rising and its only growing. If there is something fortelling here is the fact that since BTC was created the price of it has remain reaching a new all time high. I leave you with the final quote to the article and imagine how it would be written in 2021?
"The alternative – to preserve policymaking autonomy- would involve a new proliferation of truly draconian controls on trade and capital flows. This course offers governments a splendid time. They could manage exchange-rate movements, deploy monetary and fiscal policy without inhibition, and tackle the resulting bursts of inflation with prices and incomes polices. It is a growth-crippling prospect. Pencil in the phoenix for around 2018, and welcome it when it comes."
None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!
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