You are viewing a single comment's thread from:

RE: What Is Going On With Cryptocurrecny?

in LeoFinance4 years ago

I do think crypto and the digital world are the future. However I think it will probably take around a decade for everything to play out. Governments are printing money endlessly and they are ripping off their citizens. Without sound economic lives, people will turn towards alternative sources like crypto. As this happens, the faith in fiat currencies will drop and unless the government can bring it back, it will be the death of a currency.

Posted Using LeoFinance Beta

Sort:  

At least in the U.S. folk around me are already aware that their paychecks aren't going up but the price of milk is... and then drops... and then goes back up.

That kind of volatility of consumer prices is wrecking their faith in fiat currency. The idea of getting rich makes them listen, but the idea of understanding the value of a thing is what gets them to hodl.

Posted Using LeoFinance Beta

It isnt the currency that is volatile in that instance, it is the supply that we are seeing.

In the food arena, major shortages are starting to arise. This is going to send prices flying.

Posted Using LeoFinance Beta

While you're correct that shortages will affect things, I picked my example of milk intentionally: its supply hasn't fluctuated much recently, and I live in a place where we produce a lot of our own food. Already the volatility of a dollar's buying power has been a discussion at farmers market meetings.

True. The wide price changes only shows how fragile the supply system is. If supply was not an issue, the huge fluctuations in prices would not occur as often.

Posted Using LeoFinance Beta

The collapse in confidence in government is already starting. Once that happens, the entire system can be at risk. Sovereign wealth funds will disappear, almost overnight.

We are seeing a lot of turmoil in Europe as the confidence there erodes. If Biden and the US follows that path, they will get the same result.

Posted Using LeoFinance Beta

It already is starting. However, there is not a good viable mainstream crypto currency as a substitute. I can only see chaos if the dollar goes down before a suitable replacement appears.

Posted Using LeoFinance Beta

Fortunately, the dollar will be the last one to go. People are down on the dollar but when the others go, like the Yen and EURO, we will see traders turn to the USD.

Personally, I see the government crisis occur in the EU or the Mid East first.

Those are my hot spots if I had to choose.

Posted Using LeoFinance Beta