Bitcoin can replace the endless printing system if it achieves mainstream acceptance.
Although there are trillions of dollars in circulation, Bitcoin can be used to replace paper-based finance. This process will continue and remain an essential part of modern finance.
At a time when many central banks are in the process of affecting quantitative easing, printing money should be a big business. But, printing money is still a necessary action proving that fiat currency has become “obsolete” and it is time to change. Bitcoin may be an alternative.
Many people find that the US Federal Reserve is not afraid to print billions of dollars every day. However, the current economy and money printing business are actually showing this level of obsolescence as a form of payment.
Global central banks are working overtime to ensure stability because of the possibility of an economic crisis will increase. This led the Federal Reserve to intervene to add $ 111.9 billion to financial markets to support liquidity. The Fed only needs to spend 12.7 million BTC for banks overnight to put that into the cryptocurrency perspective.
The concern is the financial system, and therefore banks are mainly relying on the Fed to continue printing money to guarantee them.
After the company’s stock price plummeted, the UK banknote printer De La Ru has recently become a potential target to take over. The company claims there is uncertainty about the material surrounding its future. This announcement caused a nearly 25% drop in the company’s share.
Losing cash demand
Despite being a currency and paying for hundreds of years, cash will never be the last resort. Over the past few hundred years, the world has witnessed the development of money and it seems that the next revolution is coming to us. Finance has grown from bartering to coins to banknotes and now is the time to go further.
Bitcoin has not yet fully proved itself to be the answer to the development of money. But it would be fair to say that it has helped catalyze a digital drive towards a cashless society. Some countries have realized and are working towards a digital society. In fact, Sweden has begun to stay away from cash in pursuit of becoming a digital-only society.
Now, with De La Ru as another indicator of this global movement in addition to print money. A new era is coming where the old ways of doing things are becoming obsolete.
According to the Telegraph, CEO Clive Vacher said De La Ru had experienced an unprecedented period of change, in which many senior executives jumped ship.
Trimming the Fat
The consolidation of this money printing business also shows the expensive parts of the current traditional financial system. Although Bitcoin uses a large amount of electricity to operate, this system can be much less damaging than the entire financial ecosystem. It includes mint, money printers, banks and other financial institutions.
Moreover, Bitcoin operates without resources like printing paper money or minting money. In addition, they should also consider using energy in accumulating those materials, as well as making money. The first cryptocurrency in the world had a few problems to solve, but it was a way to try and overcome those concerns.
Meanwhile, paper finance seems to have an uncertain future as the world moves toward an imminent global economic downturn. The fiat currency’s legacy system is beginning to stagnate and struggle in the modern era. What would say about money itself if the people who are making money are starting to struggle?
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