Cryptocurrency, the Two Trillion-Dollar Retrospection!
How does printing two trillion dollars work in the coming cryptocurrency age?
I suspect printing two trillion dollars works in a global crisis, since governments are supposed to control their own currencies. They will all print together. This means, for example, people’s cash and savings gets equally devalued as a result of the impending inflation. But this does beg the question, what does it mean in the future as cryptocurrencies play a larger, maybe major, role in currency liquidity?
Does this mean that cryptocurrencies, like Bitcoin, will be allowed to have the attribute of a global hard asset, but the fluidity of a global fiat currency? I realize, this is the hype of cryptocurrency, but what is the impact?
For one, it means Cryptocurrencies will allow a global few to not be devalued as a result of government created inflation, which will result in the holder not having to pay their part of country/global crises/pandemics, like the coronavirus. This may not be obvious, but it will become extremely obvious in the coming months.
Secondly, it takes away from governments ability to financially react to crises. We saw this in Greece, when they no longer had the ability to inflate their currency, because they had joined the Eurozone. For Greece, let’s say it was a game changer!
So, does this work on a global scale, if Crytolytes are allowed to escape? Unfortunately, escape is a part of human nature, so they will if they can.
My question, did this two trillion-dollar bill just bring to the forefront the real problems governments will ultimately have with cryptocurrencies like Bitcoins, ala Greece? When the coronavirus dust settles, retrospection will set in, and for cryptocurrencies, it might not be so rosy. Someone will have to pay for future pandemics, if not us, then who?