Bitcoin was born during the last recession when a bunch of greedy Wall Street rear-holes screwed the very people who trusted them with their financial future.
In a country where people of certain colors go to jail for ridiculous amount of time for possessing stuff that is now legal in many places, NOT a single person went to jail for screwing hardworking Americans.
A decade later, Facebook pulled the similar thing.
They breached the trust of billions of people who trusted them with their most intimate details. And what did they get? NO jail time and a fine in billions.
It has come to a point where only people who go to jail are the ones who cannot afford good lobbyists/attorneys.
The issue is no different with countries.
If the US says a certain country is bad, it gets barred.
Some call the US a bully nation.
Thus far, there was no alternative for countries that were sanctioned to circumvent the unbridled power of the US over their fate.
Bitcoin is changing the situation.
Bitcoin could undermine US’s sanction power
When a particular country is subjected to sanctions and its currency gets blacklisted – the country is automatically cut off from the global trade as its exports take the big hit.
Even when there are buyers interested in the products – they may be confined by the confinements of financial establishments that operate in favor of the decree of the sanction. However, with bitcoin, you do not need a financial establishment or a middle man who can dictate how you spend your money. This affords individuals and businesses (and by that token governments) to circumvent the brunt from the sanctions.
New York Times reports “While Washington could still monitor and intimidate major companies, countless small and midsize companies could exploit Bitcoin and other cryptocurrencies to conduct business under American radar.”
Forbes reported “Digital currencies could provide a way for both Iran and Russia to avoid U.S. dollar transactions, as well as a possible replacement of the SWIFT inter bank payment system.” – A senior Iranian economic official during a May 2018 meeting in Moscow.
Even the United States Treasury recognized the threat Bitcoin presents to its global dominance through the power of US Dollars.
US Dollar under attack?
US Dollar acts as global reserve currency, one of the primary reasons it continues to be in demand and keep its value. No matter how much the US keeps printing fiat out of thin air – as a global currency – it usually finds demand.
While some could argue that both the US Dollar and Bitcoin have nothing to back up. Even without going into the potential of the technology itself – the key difference between US Dollars and bitcoin comes from the scarcity. US Dollars are almost unlimited in supply (and they can continue to print more) while Bitcoin is limited in supply.
This one aspect makes Bitcoin more valuable than gold.
Tech giants making dent at US dominance?
Bitcoin has opened the door to another massive problem for the US dollar dominance in the form of technology companies trying to enter into the ‘currency’ space.
Imagine if Facebook’s Libra helps you pay for goods and services (similar to Apple Pay) – how will that impact the US’s power in enforcing sanctions?
How can you stop someone exchanging value over messaging?
Bitcoin has opened the Pandora’s box
As you can see, Bitcoin has opened the pandora’s box and there is no turning back. We anticipate that we will soon see a Digital USD in circulation which will help government (and tech companies) to track the movement of every penny ever spent.
Will it be successful? We don’t know – but the day digital USD is introduced – you can be certain that Bitcoin has successfully scared the establishments.
Will a digital US Dollar undermine Bitcoin and re-instill US’s dollar bullying power? Only time will answer this question…
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