Is Bitcoin the New Transformative Technology of the World?November 9, 2019
For most of its early supporters, bitcoin was nothing more than a solid investment vehicle. This differs from leaders of cryptocurrency evangelists and true believers who see this entire phenomenon has something much bigger than simply a chance to make money.
Interestingly bitcoin also gathered supporters from many different and often unexpected quarters. In fact, some of these supporters believe that they were simply misquoted in media interview or that someone intentionally skewed their words and opinions.
However one of these proponents is an economic analyst who is working for the media company Russia today or simply RT. His name is Max Keiser and this TV presenter has over the years had bitcoins back through thick or thin. Recently he took his support a step further and claimed that bitcoin and cryptocurrencies, in general, are actually a huge step forward for the entire civilization and not just its economic sector.
Kaiser stated that the importance of Bitcoin is equal to the Invention of gunpowder. While this might sound completely random and weird it might have a lot of truth to it, especially when considered the potential threat that cryptocurrencies have in their core DNA when they are stacked against traditional Economic and financial systems.
De-Dollarisation represents an ongoing process where multiple nations are trying to drop the USD DSS into their main reserve currency. This is an ongoing effort amongst many central banks including those from nations like China, India, and even some European countries. Russia has also been associated with this process. It essentially includes nations taking their dollar reserves and using them to buy gold bullion.
The same gold then takes the place of the dollar in the country’s strategic reserve. Some analysts see a definite political process behind the purchases of gold by central banks while others connect this behavior to simple survival in an unstable world of the future. Essentially this would be equal to hedging the bets in an online gambling session.
Whatever the ultimate reason might be, there are likely none that cover all countries one thing remains the same – nations are buying gold and dropping the USD all over the world. Kaiser in his RT show often commented on this process and even called it a trend that is gaining pace across the globe. Yet, it is only one piece of the puzzle when it comes to its USD influence on cryptocurrencies and vice versa.
The Weponization of the US Dollar
Kaiser recently explained that he is starting to clearly understand that the US can pressure other nations through the process of the final settlement in USD transactions. Here he demonstrates the same point by showing that the USD as a means of international trade allows the US greatly profit. At the same time, it allows the US government to wield influence and control the policies of other nations using nothing more than economic sanctions. For any nation, the ability to have access to the USD is crucial for international trade. Cut this access to any individual government and the same nation will quickly slide into drastic economic hardship just by not having the means to buy and sell the USD.
Kaiser this policy as a form of economic aggression but now the world has as additional options when it comes to both straight value keeping and value settlements. This is a stake in the heart of the same USD weaponization. Many nations including those who are not overly antagonistic towards the US are tired of the process of USD cutting down their economic potential. All of that is part of the great pivoting away from the dollar. In this pivoting, some entities are fast becoming aware of the bitcoin network and its distinctive possibilities and immense potential.
Having that environment in mind, bitcoin is simply another alternative that countries can use to settle and trade all the while completely avoiding the traditional banking and economic sectors. Kaiser thanks that many governments will begin to use bitcoin and other cryptocurrencies, including their own, just so that they can avoid being swallowed in the US empire of debt. In Keiser’s view, some in the US government and wider circles of power are beginning to slowly understand that the USD dominance is slowly being eroded. Bitcoin is one of the entities that represent the biggest danger to the same dominance in the years and decades to come.
A New Technological Age
Behind all of these issues is the basic fact that bitcoin is not just another currency. Technologically, it is something different and its self-settling principle defines a brand new start for the process of financial transactions. Will it change the geopolitics of the world? Possibly but no one could say when will this happen. Kaiser made an analogy connecting bitcoin with the invention of gunpowder. In both of these cases, the world attained a brand new means of doing something that was previously done in a completely different way.
Gunpowder transformed the war into something completely new and the world powers had to adjust and compensate their strategies and approaches when engaged in it. Similarly, bitcoin and cryptocurrencies are providing something new to the well-developed field of finance, value storing, and transactions. This analogy might seem completely right but it has its problems.
Time to Develop
It is true that no one can make the world forget that these technologies exist once they come into the public domain. But gunpowder was invented in the 12th century. It took almost 600 years to make it the only dominant tool of warfare.
Bitcoin, on the other hand, has only a decade of existence behind it. Like esports, social media, and many other novel technologies its potential is huge but still ultimately drastically underdeveloped. Yes, cryptocurrencies and blockchain represent a transformative technology and their impact will resonate with the world in the decades and even centuries to come. But saying that it is directly jeopardizing the position of the USD is drastically jumping the gun on this problem.