"We have long been skeptical of cryptocurrencies' value in most environments other than a dystopian one characterized by a loss of faith in all major reserve assets" says JP Morgan analyst and managing director Jan Loeys in a note to his clients this week.
This sentiment reflects a profound understanding of bitcoin's potential coming from a person within the banking industry and yet he acts as if it's practically impossible.
In a country like Venezuela that has experienced hyperinflation, bitcoin plays a major role in society by helping preserve wealth and mining the currency for income. For people in these situations a dystopian environment already exists and bitcoin is more or less a way to provide a decent standard of living that can't otherwise be achieved with fiat money anymore.
Although it may take a lot more than a market crash or financial crisis to rapidly devalue the dollar this is not unheard of. Other countries are threatening to dump their dollar debt or refrain from taking more debt in dollars which will both harm the dollar's value. Ancient Rome and other civilizations in the past have had very similar monetary policies and have also been a major reserve currency of the world during their time and have all fell victim to inflation and collapse because of these policies.
Do not trust central banking that promotes currency inflation and shames alternatives that are actually keeping people alive in some places around the world today.
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