Print more money or switch to cryptocurrency: what will central banks choose?
It is human nature to be afraid of what one does not understand. That is why many are simply afraid of cryptocurrencies.
Print more money or switch to cryptocurrency: what will central banks choose? Cryptocurrency did not appear yesterday, but it is terribly unfamiliar, and you cannot touch it, hold it in your hands, like our usual money. At the same time, bitcoin has many advantages: for example, it is an ideal collateral for obtaining a loan. Why?
Bitcoin cannot be devalued by printing more bitcoins. The algorithm does not allow this, and this compensates for the main problem of our “real” money – their constant emission.
If you get to the bottom of cryptocurrencies, they will no longer seem alien and scary to you . You will discover a new world that you can enter with boundless optimism and prospects for the future.
CBDC . What is worth taking a closer look at is the real policy of the Central Banks, who also hurried to jump on the train that is moving in the direction of digital cryptocurrency. Leading powers intend to become part of a new process and create the so-called CBDC – central bank digital currencies. These are centralized banking digital currencies. CBDC is planned to be created as an additional mechanism for interaction with the new financial system.
Unlike regular government money, CBDCs have one very nice and handy feature: they are programmable. Thus, it becomes possible to create for each person individual taxation, personal monetary policy, as well as penalties and benefits, and much more that suits only you.
A number of experts believe that the digital currencies of the Central Bank are progress and good. CBDC has many advantages. This is the reliability and ease of handling them. This is the limitation that needs to be taken into account. When the process of introducing the CBDC is over, we will all depend on the Central Bank. Consequently, the Central Bank will fully have the power to destroy all our savings, if only the state wants it. In this case, in the future, bitcoin can play the role of a magic wand, since it is not associated with either a bank or any state.
At the moment, all the countries of the world are on the verge of bankruptcy, because they all have an absolute budget deficit. Against this, such measures as the same additional printing of money are being taken. There are no other options, because in the modern world, the bankruptcy of all states cannot be allowed. The budget deficit is also replenished through taxes, inflation and currency depreciation.
Taxes are constantly being raised. It is obvious. But inflation and the depreciation of currencies around the world are completely different things.
The Central Banks of different countries have a certain level of inflation to which they aspire. It is much taller than what we actually see. The state is trying to convince us that inflation is currently at the level of 3-4%, but we all regularly go to the store and see food and essential goods and this is far from the case. Some products have risen in price by 30-40%, others – even up to 50%.
We will talk about how the money and currencies of the world lose their value in the next post.