Bitcoin, the new world order
The way to move money on the planet is changing by leaps and bounds. Bitcoin proposes the great challenge of a new world order.
Our world is changing at a surprising speed. New technologies are generating substantial transformations in all sectors of society. Which is generating great positive consequences, but at the same time it is weakening the old social structure existing to this day. And in the new order that is being born, cryptocurrencies like Bitcoin occupy a special place.
A world that dies a world that is born
With the fall of the Berlin wall and the end of the Cold War, a new world order was established worldwide with the United States leading the way. The triumph of democracy and liberalism seemed unstoppable throughout the world. While communist governments fell one after the other against the democratic stampede.
However, 20 years after these events, the picture looks very different. And, the intrusion of new international threats such as fundamentalist terrorism. They have posed a threat to the preponderance of the United States and the liberal international order across the globe.
To which would be added the challenge that for the United States represents the rise of China as a possible competitor in the international arena. And that forces him to face for the first time in two decades. To the threat that another State represents with the potential to supplant it as the maximum world power.
All this occurs within the framework of one of the most important technological leaps of recent times: The Fourth Industrial Revolution. A process that, breaking the barriers between digital, physical and biological, is transforming the world we live in.
Technologies such as the 5G internet, artificial intelligence, genetic engineering, or 3D printing. They are not only great business opportunities, but also battlefields where companies and entire countries fight for supremacy. Obtaining disparate results in the process.
And of course, within the technologies that everyone wants to master, the Blockchain occupies a special place. Thanks to the influence that it has to streamline processes in virtually all sectors. From health and education, to finance and telecommunications.
All this leads to consensus that was believed to be firmly established in people’s minds, and in the international system, begin to break down. With the consequence that a new world order still to be defined begins to emerge on the horizon. Having features totally different from what we have seen so far.
Cryptocurrencies and the new world order
And in this new order that is slowly shaping, cryptocurrencies play an important role. Well, they have not only triggered a debate in all the nations of the world. But they have driven the emergence of a new type of currency worldwide: digital assets.
An impact of such magnitude is understood when considering the consequences of the emergence of cryptocurrencies such as Bitcoin, for the world order. Since, they question for the first time in decades, the monopoly on the issuance of money possess all the governments of the world. Which allows them to issue more or less money at will, and according to their objectives.
Bitcoin proposes a different way of managing money. Delivering control over the monetary issue to society. Which will be responsible for defining the amount of money that will exist, as well as its characteristics. All this taking advantage of the capabilities of Blockchain technology. And threatening, therefore, the power that national governments exercise over society.
Of course, Bitcoin and the other cryptocurrencies don’t come from nowhere. Well, although virtual currencies such as Ethereum and XRP respond to more specific needs, such as the creation of smart contracts and the conduct of international financial transactions. The profound force that has led to its emergence is different.
The end of fiat money?
Relating all this to the reasons behind the creation of Bitcoin by Satoshi Nakamoto in 2008. And that is, Nakamoto decides to give life to BTC as a reaction to the effects generated by the financial crisis of 2008. Being an attempt to avoid the type of manipulations by large companies, with government approval, which led to the enrichment of few at the expense of the majority.
This is due to the ease with which traditional fiat money can be manipulated. Since, as it happens on many occasions, especially in countries with weak governments. The monetary issue with the objective of complying with the obligations acquired by the government is a common resource. Which depreciates the value of money, impoverishing the citizens of the country, and affecting confidence in the value of the currency.
Cryptocurrencies, unable to be issued at will by any centralized entity. They avoid an excess of liquidity that leads to excessive depreciation of the currency. On the contrary, virtual currencies such as Bitcoin have a limit of tokens that will ever be in circulation. Cutting off the problem of monetary overdraft.
But of course, this has not been so. Well, governments around the world have reacted to the cryptocurrency challenge, either by reducing their scope of action as much as possible, or by taking steps towards the creation of their own virtual currencies.
Thus, the main competition for cryptocurrencies arises, coming from the government sector. An attempt by governments to update traditional fiat money. Incorporating the advantages that comes with the use of Blockchain technology. With the control and vigilance exercised over ordinary money.
What will be the result of the interaction between cryptocurrencies and government virtual currencies? The truth is that, both crypto assets and state digital assets, are trends that cannot be stopped by any specific person or entity.
On the contrary, the two are crucial parts of the new world order at birth. Much more digitized, much more interconnected, and also much more decentralized. Therefore, if something should be done to governments, it is to assume the existence of cryptocurrencies, and their permanence over time.
Which probably allows them to take advantage of the advantages offered to speed up processes and transactions in their economy. Instead of engaging in a sterile war against cryptoactives. That, at the end of the day, it only weakens the government that tries to carry it out, and that it will not have the advantages that the crypto world could offer.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.