ForexMinute.com – At the start of its unspecific journey, a virtual currency was nothing but a concept that directly mocked the regular, traditional mode of payments. The concept challenged a strongly-laid monopoly under which currencies are issued and regularized, and thus kept itself away from being watched by a group of randomly chosen tie-knotted bureaucrats.
The first currency Bitcoin made enemies with the big people quite like this, i.e. by simply turning away from their methods that said that “only a bank can issue a currency”. But hasn’t the same big people once decided to abandon gold standard to adopt paper money. So the question is, cant people today, democratically, decide to abandon paper money for the virtual one; at least to save the trees.
Legally no, ethically yes.
Bank of Mauritius had recently warned the public against the use of a currency that is unregulated, especially when there are financial securities involved. Although, we can also assume that even a legal thing like a real currency cannot guarantee stability, and can also be misused for illegal purposes, i.e. buying drugs. The way I see, the best way to discourage Mauritians from Bitcoins, Litecoins, and every other cryptocurrency could rather have been the preserving of the Mauritian Rupee’s purchasing power to tackle inflation or, if necessary, by increasing interest rates. But they chose a simple path, the usual blame game.
The similar warnings can also be seen from every corner of the world, with European Central Bank calling virtual currencies “doubtful” and China, famous for its communism, banning them outright, even when its own currency exchanges are making positive waves throughout the world. Even a failed economy such as Iceland has issued a warning to its people not to trust their soon-to-become national cryptocurrency Auroracoin.
What these countries, or central regulatory bodies, do not understand (or want) is innovation that can snatch away the so-called-money-controlling-authority from their hands within moments before they say “Quidditch”. Pun intended. Bitcoin, Litecoin, Peercoin, Dogecoin, Auroracoin, and every other digital currency is decentralized, secured, and most importantly, independent from any central authority.
As a result of ECB and BOE policies and Fed’s quantitative easing, the commodity prices in Dollars, Euros, or Pounds will increase in coming times. However, it will be impossible to depreciate the value of cryptocurrencies, especially Bitcoin, because of its limited quantity of 21 million. The former Fed chairman Ben Bernanke also stated once that digital currency may hold long term promises, and that is what it is up to.
Digital currencies today are a monetary alternative, not a real currency. It will only work as a real money when people and merchants will willfully accept it to exchange goods and services. Virtual currencies escape the manipulations of central banks and politicians.
See the future. Choose wisely. Governments and currencies!
To contact the writer of the article: Yashu Gola at email@example.com