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LINKS FOR ADDITIONAL READING FOR THIS VIDEO & ALL INFO IN TEXT DOWN BELOW:
Average life expectancy for fiat: https://georgewashington2.blogspot.com/2011/08/average-life-expectancy-for-fiat.html
Crypto Tips Unplugged Playlist: https://www.youtube.com/playlist?list=PLjSfwlM7JzdaRIiVjmsgQsqADSt2lN7vK
Discovering Satoshi Playlist: https://www.youtube.com/playlist?list=PLjSfwlM7JzdYLgtoGBQkh7U61CqsVH-qa
Crypto Tips A Bit of Crypto Philosophy Playlist: https://www.youtube.com/playlist?list=PLjSfwlM7JzdZW2Negc1hRki63UgxFs99t
What Will Happen when the Dollar Collapses (attention to digital currencies): https://www.zerohedge.com/news/2015-04-25/what-will-happen-you-when-dollar-collapses
Anyone who is holding decentralized, open source, permission less cryptocurrencies and who has the faintest clue as to the long game of this space, why it was created, how it is disruptive for example, is most likely still holding because they are hedging against the ever increasing, worrisome state of centralized fiat currencies like the U.S. Dollar and the Euro for example.
I say increasingly worrisome because historically, the average lifetime for a fiat currency is 27 years. The shortest only lasting for one month and the longest being the British pound Sterling lasting 317 years. Typically an existing monetary system will fail in 30 to 40 years and will need to be reworked. In regard to the U.S. dollar, the last time this occurred was in 1971 when President Nixon took them off the gold standard, effectively removing the ability for individuals to go to the bank and convert their paper dollars into gold. Which until then was required to be had on hand in order to maintain some sort of consistency regarding the buying power of the USD. I’m focusing on the US dollar here simply because it is the current world reserve currency and the status of this particular fiat currency has the potential to quite easily affect other economies around the world. The mismanagement of it could therefore destabilize a great many other nations outside of the US.
Flash forward to the year 2019 and governments around the world are still trying to properly recover from the effects of the global financial crises of 2008. Central banks around the world but particularly the Federal Reserve in the US and the European Central Bank have tried everything from Quantitative easing to now issuing Repos around the clock to stimulate their respective economies but mostly they have just printed an obscene amount of money in an effort to encourage the issuance of more debt in the form of loans. The sad part is, the only absolute, certainty of these efforts are the guaranteed devaluing of their currency and increasing the risk of hyperinflation.
These governments by now have certainly heard of Bitcoin and have become even more alarmed by the proposal of Facebook’s coin called Libra. Once the dust somewhat settled, one after another have voiced their interest in creating their own very centralized, very controlled form of digital currency. No government in their right mind would let go of their control over something so powerful and influential as their own currency, heaven forbid they should invite their citizens to play an active role in securing its network or have the ability to self-audit the code and come to their own conclusions as to its resiliency.
No, no, instead, governments like China and now even Christine Legaurde of the ECB have shown possible interest in creating their own digital currency in the form of stable coins.
But the thing about stable coins is that their only value comes from what to which they are pegged. Any governmentally issued stable coin, or really, any stable coin that piggybacks it’s stability from fiat reserves is therefore also subjected to the very scenario I described earlier: Devaluation and an expiration date. For those of you who are wondering what else could go wrong with using a governmentally issued stable coin, I encourage you all to check out the links to additional reading down below in this video’s description. Here’s a hint, data tracking, currency controls, and censorship will abound.