In a world of falling FIAT currency, broken sovereign currency and economic downfalls, we are seeing major cryptocurrencies like Bitcoin stand up to pressures and hold their own against broken financial systems.
We just need to look at countries like Turkey and Venezuela who have been in financial turmoil over the past months to see a true use for Bitcoin and other cryptocurrencies, a use that brings them to the fore when local and sovereign currencies collapse. Simply put, people in these countries know they have access to an alternative, that alternative is Bitcoin and now it’s proving its capacity to save them.
According to Coingape:
“Pension Partners who carried out an analysis of Year-to-date (in 2018) return of cryptocurrencies and certain fiat currencies vs the dollar revealed that Bitcoin that dipped 46.7% (excluding Bitcoin’s significant percentage gains throughout 2017) was much more stable than Venezuelan Bolivar, Sudanese Pound, and Argentine Peso which fell 99.99%, 61.61%, and 50.5 % respectively. One may argue that these economies are not the greatest in the world to draw a comparison with, but the nascency at which cryptocurrencies and the population that these countries have, Bitcoin’s adoption here would definitely be impactful.”
The premise of this is that though Bitcoin has declined over the past year, it’s fall hasn’t been as harsh as a number of sovereign and FIAT currencies that are backed by banks and governments. With this in mind, the argument is plain and simple, if a decentralised currency is performing better than centralised and controlled currencies then surely the decentralised option provides better prospects for the future.
Globally, future comparisons with Pension Partners research between other cryptos and other FIAT currencies can be drawn too, according to Coingape:
“According to the research the top 3 worst performing cryptocurrencies have been Qtum(-91.3%), Bitcoin Gold (-90.6%) and NEM (-89.1%), while the best of the falling lot have been EOS (-15.7%), VeChain (-27%) and Bitcoin (-46.7%), which on the fiat side the worst have been Venezuelan Bolivar, Sudanese Pound, and Argentine Peso which fell 99.99%, 61.61%, and 50.5 % respectively while the best among falling lot on fiat side has been Jamaican Dollar, Uruguayan Peso and Indian Rupee falling 9.3%,-9.8% and 10% respectively.”
The future, is cryptocurrency. Now we are seeing more evidence than ever before to support this.