Travel Platforms Accepting Cryptocurrency payments
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When it comes to cryptocurrency growth and acceptance both as a means of payment and investment, the implications on the dollar comes to mind. As we know it, the dollar is the global reserve currency and forms a benchmark on which important commodities such as oil is measured.
Today, the dollar is more popular than any other currency not only due to its wide use but also relative stability in the face of global turmoil. From the worst global economic crises, the US dollar has shown resilience and ability to recover to stability quicker than the other currencies. No wonder it has maintained its position as the global currency. But the million dollar question is how this status will persist in the light of cryptocurrency.
Bet you me, so many holders of US dollars could have already contemplated rushing to buy cryptocurrency. As is human instinct, people fear risks especially when it comes to a speculated fall in currency value. While it is okay to buy cryptocurrency using your US dollars, it’s better still to have an idea on how the dollar will likely square it out with the crypto going forward.
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As a crypto investor, you might be asking yourself, “What will the future of the dollar be like?” “How about cryptocurrency?” Ideally, the significant rise of cryptocurrency across the world has become a source of main concern.
Although the dominance of the US dollar in the global markets is recognizable, the rise of cryptocurrency has continued to pose a major threat to the status of dollars. It is important to understand that the cryptocurrency emerged as a method to decentralize money after the 2008 financial crisis.
Around this time, many people across the world believed that the more cryptocurrency are purchased, the more they will function to replace the paper currency. In fact, this possibility has not been ruled out as over the past decade, people have continued to use cryptocurrencies. It has been possible to make online payments on goods and services using Bitcoins.
On the other hand, the opponents of cryptocurrency argue that it has no future, and that dollars is still the future. As we know, paper and metal money has undergone a tremendous change since the 17th century. As such, there are a number of challenges that may prevent cryptocurrency such as Bitcoin from stopping the dominance of dollars.
Today, the US dollars stands out as the world’s dominant currency. Remember, this dominance has been achieved after decades of defying a number of predictions from financial experts and analysts about its demise.
About 70 percent of the total global foreign reserves are in dollars. The fall of shares have also been experienced across the world, with the emergence of digital currency and technology. In fact, cryptocurrency established a masterstroke move from being a preconceived academic concept to a reality, particularly in 2009. With the creation of Bitcoin, the value of dollars has continued to shrink as many traders have resorted to cryptos.
In 2013, Bitcoin made history when it caught the attention of the media and investors. During this time, a single Bitcoin traded at $266, but later surged 10 times in a span of two months.
All these indications are a source of concern to financial experts. International regulatory authorities and the US federal governments still believe, however, that Bitcoin has a long way to go still. Yes, it is true. However, I think those statements could be a way to console itself from the ruthless impacts Bitcoins and its cousins are posing to the global financial and payment systems.
However, the crypto confidence still makes the arguments supporting future demise of dollars a viable one. Let’s try and dissect this seemingly complex yet not so issue of cryptocurrency confidence.
Irrefutably, the confidence towards cryptocurrency among investors is massive. Many financial experts say that the future of cryptocurrency relies on so many factors, and not necessarily the status of US dollars. I agree with this point. In fact, the manner in which investors will respond is a key to the future of the coins. It is understood that the response so far has been a good one.
You must have observed a panic and despair, with many financial professionals comparing the dominance of the cryptocurrency to a scenario whereby the bank becomes insolvent. Although in reality, such comparison is inappropriate.
In the case of the bank run, the customers tend to be concerned about their money and more specifically if the bank will give them their money. In fact, they do not worry if their money will become valueless.
The investments in cryptos is on a rise. Thus, the proponents remain upbeat that the future of crypto remains luminous. In simple terms, more people will have invested in cryptocurrency in future because of this confidence. They will believe that cryptocurrency will make them wealthier in the future. Coupled with its unique transformational nature, it is undeniable that cryptocurrency has a potential to replace all the traditional forms of financial exchange. Given a chance and support, which is not likely to come, crypto can but itself through and become the primary currency in the global payment systems.
Although there are a number of indications about the future of cryptocurrency, most investors use one indicator: any increase in the cryptocurrency value signifies an increase in its power over other fiat currencies.
Meanwhile, stablecoins have been reported to hold a huge power enough to rival any existing fiat currency. In fact, financial experts generally agree that the stable coins provide an alternative to the Bitcoins, which are massively volatile. Their values remain considerably stable and you can easily transfer them without any fees. This represents a departure from the fees normally imposed on the cards or any other international fund transfer.
Remember, stablecoins provides millions of people the opportunity to use their smartphone in such transactions. It will not matter whether a customer has a traditional fiat currency bank account or not.
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Interesting times ahead are yet to come. However, I think the future of dollars amidst the rise of cryptocurrency is still oblique. In simple terms, it may not be easier to confidently say that cryptocurrency will take over the dominance of the US dollars and perhaps vice versa.
The present indications regarding the cryptocurrencies are difficult to rely on. For many decades, US dollars has defied the predictions from renowned financial experts that it would die. Who then can tell what will happen in the next 40 years? A tough question that is.
There is also a possibility that digital dollars will come in place. Following the rising interest in cryptocurrency, the IRS has been considering launching US digital dollars. However, the possibility of its implementation remains narrow but viable. If such implantation happens, then cryptocurrencies will not dominate it.
Finally, many nations know that if cryptos become a dominant method of global payments, the functioning of central banks will be greatly impaired. Thus, it is a battle that we have to watch keenly and embrace whatever the situation comes.
Until then, the world will continue using dollars and it will remain the global currency for the near future. The dollar will likely remain the world’s dominant international currency for the imaginable future