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Is Bitcoin the future of the economy?

October 8, 2019

Maybe the times of bubbles and 100% growth in ten minutes are over. But the need for Bitcoin has not. If anything, today it is stronger than ever, as Jared Dillian commented in his last article in Bloomberg.

Start believing in crypto coins
To anyone approaching the crypto coins for the first time, they can look like a bubble, perhaps even a scam. Let’s think about it for a moment, a coin that only exists on the net, without any institution or behind it. How can we believe that from good to first?

That’s why it’s not surprising that Jared Dillian didn’t do it in the first place, especially during the big bull rally of 2017. However, in the midst of such a confusing political and economic landscape, he can no longer afford not to believe.

For Dillian, at a time when populism and nationalism are growing, the need for a currency independent of governments is greater than ever. Especially at a time when the monetary system seems to be going so badly.

Since the financial crisis of 2008 alone, the amount of dollars in circulation has doubled. However, inflation has not increased, and interest rates are still on the floor. As Dillian says in his article:

“I’m not smart enough to understand why it happened this way, but it seems common sense to want to avoid any currency that is being degraded to such an extent.

At the same time that this substantial increase in monetary liquidity occurs, there is also a parallel phenomenon. The increase in the fiscal deficit of governments around the world seems unstoppable. A point has been reached where it seems that the only way they will be able to pay their commitments will be by printing money left and right.

“Bitcoin’s real geeks are utopians who envision a society free from the burdens of centralized central banks with policymakers who tend to concentrate risk and error. Financiers, like me, see a growing authoritarianism in politics, which has the potential to translate into very anti-liberal economic policies.

Jared Dillian ends his article by commenting that Bitcoin and cryptomonedas might if they went through a bubble phase. Making a comparison with the dot com bubble of early 2000, where the death of 99% of Internet projects allowed the rest to prosper. So, he says:

We have already had the initial bubble, full of “CoinDaddy” and “Bitcoin Jesus”. Now we’re getting down to work to realize the potential of a technology that could be as influential as the Internet itself.

Jared Dillian on Bitcoin
Bitcoin or not Bitcoin there’s the question
This article by Jared Dillian puts on the table several of the central issues for those of us who are immersed in the world of cryptoactives. The very idea of Bitcoin and crypto currencies has an impressive transforming potential. But there is also an equally great risk if it is oversized.

To begin with, the cryptoworld suffers from a major problem: the Bitconcentrism that permeates it. It is not only people outside the community who reduce crypto currencies to Bitcoin. We ourselves, through our actions and investments, end up focusing on the BTC as if it were the only currency on the market.

And it really isn’t. There are even those who could argue with enough evidence that it is not even the one that provides the most value. Yes, Bitcoin has put crypto currencies on the map, and its community has developed a technology that is transforming the world.

But Ethereum is also transforming it. And together with other currencies such as EOS or TRON, it is creating a world in which smart contracts, and the development of decentralized applications, are within everyone’s reach. By putting Blockchain technology and crypto currencies within everyone’s reach, ETH is revolutionizing the world.

But XRP is also transforming it. And thanks to the efforts of the company behind this currency, Ripple is democratizing international finance. Putting in the hands of anyone in the world the possibility of sending money across borders. And not only that, but to do it with a minimum cost and immediately. Thanks to this XRP is revolutionizing the world.

Not to mention other applications other than Blockchain technology and crypto currencies. Of other projects that pursue similar aims to Bitcoin as Libra Facebook. Or even Crypto Games and its contribution to the technological world.

Therefore, if we want Bitcoin to be ready to assume the responsibility that Dillian puts on the coin, it is necessary for the crypto community to mature. That the BTC is seen as an active reserve of value is positive, but we must also work on pressing problems such as the scalability of the currency. If we face so many problems in the use of Bitcoin with a 0.5% adoption of crypto currency worldwide, how many problems could arise with a 2%? Is this enough? Not to mention the centralization of mining power on large mining farms.

These are all problems that we have to face as a crypto community. And moreover, we must be ready to release Bitcoin in case it cannot assume a role within the new international financial scheme. Because the truth is that the world economy is in trouble. And Blockchain technology and crypto currencies probably have a good part of the solution. But we will only be able to be part of this new world under construction if we begin to see Bitcoin, and our currencies, as assets with real value, and not as mere objects of financial speculation.