Why Bitcoin Can't Replace the US Dollar (Fiat)
Can Bitcoin / cryptocurrencies replace the US dollar / US government and fiat currencies? Can Bitcoin be the revolution that takes down the fraud that is central / commercial banks worldwide? Have they finally gone too far with zero interest rate policies and quantitative easing? Probably, but believe it or not, that is besides the point. Bitcoin is not capable of implementing even some of the most basic functions of monetary policy.
For one, Bitcoin isn’t even inflationary (well, it won’t be in the long-term), which would be unhealthy for the economies it supports (especially for those driven by consumption). In addition, credit in a Bitcoin based economy would be rather difficult. Monetary policy helps alleviate both credit crunches and overheated economies through influencing interest rates.
While such actions have been controversial, they have worked well for us (literally US) over time and has helped create some of the wealthiest nations in the world by bolstering GDP by encouraging spending when it is slow and decreasing probability of the economy overheating.
Bitcoin would have to lose its function as a store of value to become a true currency that encouraged spending, in which case it would no longer really be an investment anyway. Instead, Bitcoin should operate as an alternative to traditional payment channels and fiat currencies for remittances and general business transactions for those who “opt-in.” There is plenty of market share here and it is realistic.
Disagree with me? Feel free to share in the comments! Also let me know your thoughts on the idea of more controversial videos like this one. I love debate, so I think I’ll be making them regardless. Thanks for watching!
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