There’s a saying that wherever the US goes, the rest of the world follows. However, China seems to be working hard to change that!
China is aiming to launch the first digital currency. It looks like, once again, they’re going head to head with the USA in the race to rule the world!
From South America to South Korea, central banks have quarantined and disinfected potentially contaminated banknotes. Contactless payment limits have been increased and fewer places are accepting cash. We are being groomed to slowly do away with cash and accept, what is effectively machine code in the form of digits in our bank account, as our new money…money which can be created instantly by the central institutions that own them by pressing a few buttons on a keyboard.
There is no doubt that COVID has fast-tracked this “cashless society” stage in the evolution of our monetary system.
Dozens of other global central banks have also been looking at whether to issue digital currencies. But, to date, only a few have run trials and none have gone as far as China, which appears set to become the first country to put a central-bank digital currency (CBDC) into limited use.
Central Bank Digital Currency — CDBC
This is a phrase you’re going to be seeing used very often. These will probably be built on the blockchain just like every other future digital currency potentially will.
Question is, is it going to be a public or a private blockchain?
As the name suggests, a public blockchain suggests that information on the same is available in the public domain. Private blockchain means that information is not available. My view… definitely a private blockchain as we know governments thrive on the ability to have anonymity.
Private or public…what difference does it make to us?
If a digital currency is on a public blockchain which essentially puts it in the public domain, the possibility of tampering and manipulation of the currency is reduced as all transactions are visible. They provide accountability. Bitcoin and friends are in the public domain.
Private blockchains are hidden and that allows them to be manipulated and created out of thin air. These new Central Bank Digital Currency — CDBC — are trying to do what Bitcoin has done in the sense that they want to become a currency that can use the blockchain network similar to Bitcoin, minus the transparency and accountability.
CDBC’s maybe a currency but they are not “Money”.
They will be open to manipulation and unlimited creation like our currency fiat system. Over time, they will cause inflation and increase the cost of living for all those using them. However, there is hope.
You will always have the option to choose between a CBDC and a cryptocurrency like Bitcoin and friends of which there is only a limited amount.
THAT IS THE KEY…WE NEED ASSETS OF WHICH THERE IS A FINITE AMOUNT!
These also provide a hedge against inflation. Crypto is ideal for this. Now, crypto prices do shoot up and down and scare certain investors as they seem very volatile. Thing is, you have to remember that with cryptocurrencies, the global market is open 24/7/365. Its traded every hour of every day..even on Christmas day!
The stock markets on the other hand are open five days a week and during business hours. This gives traders the opportunity to take time out and start again with a fresh head. This, in my view, gives Crypto an edge as when the prices do start to rocket up, they will keep going, and going and going without any breaks or for a central authority to interfere with the momentum…that’s a time I can’t wait for!
Also, Bitcoin has outperformed every single asset class in history with gold coming in second…and it’s not even got started yet!
WE REALLY NEED TO BE LOOKING INTO THIS!
It does not matter what your income level is. If you have savings, you really need to understand the importance of the blockchain network and its intricacies. It’s the equivalent of learning how to use the internet back in 1995!
UNDERSTAND THE DIFFERENCE BETWEEN GOOD AND BAD DEBT!
I encourage everyone to try and understand what cryptocurrency is and why it is so important to every person on the planet right now.
Click here for my free masterclass to get you started.