The Coming Currency Wars
Currencies compete. They compete for attention, they compete to be held, and they compete to be spent. The more a money is held, and spent, the more dominant it is. Have you ever wondered why you think of the value of something in dollars, yuan, or rupee? It is the money you think and communicate in. Entire wars have been fought over money, and what we decide to call money. For a long time, we called gold money. Every money supply in the world was based on gold. Now we think in dollars, the USD specifically. Most things are priced in USD. Billions of people think in terms of the USD. We’re entering into a war for the dominant currency. The way I see it, there are at least four currencies that will compete on the world stage for the title of World Reserve Currency.
The Top Four Currencies
In my mind, there is only one victor in the currency war, and that is bitcoin. But, during the process of becoming the world reserve currency, it will fight several others. The first two are fedcoins, that is, they’re backed and supported by a government. Those two are the Chinese Yuan and the US Dollar. The third is something that we’ve only started to hear about, and that is a business coin. The first instance of a company officially saying it wanted to create a currency was Facebook. In 2019, they announced project Libra, their own cryptocurrency. This would be a coin that serves the interests of multi-national companies, (more than the USD). The last coin is our pick, Bitcoin. We believe that ultimately, bitcoin will succeed, due to the fact that it is the peoples currency.
Mrugakshee and I dive deep into the discussion on episode 19 of the Go Full Crypto Podcast. It is here that we unpack the meaning of a CBDC (Central Bank Digital Currency). We talk about what it would be like if Facebook actually launched their own cryptocurrency. Lastly, we talked about why Bitcoin will be the inevitable winner of the currency wars.
Listen to the Episode
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