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End of Fiat-based Money in Sight..........Digital Currency Bitcoin is It

Deutsche Bank Strategist Says End of Fiat-based Currency Systems Near, Recommends Bitcoin

The rise in the value of bitcoin and other digital currencies, and the ease with which they are used without third party interference is beginning to commend the digital currency to many people around the world.

Many are seeing virtual money as the future of money indeed.  One of the people that thinks this way is the Lead Strategist of Deutsche Bank, Jim Reid.

He claim that the current fiat-based currency system is unstable and nearing its end. He said the system was only able to advance to its current state due to the disinflationary shock it experienced in the 1980s.

In his recent report, Reid claimed that the fiat system is now in reverse and is expected to affect all the traditional currencies being used around the world.

However, he said that the strategies being used to control inflation like loose policies, extensive leverage, and continuous printing of money may lead to the end of paper money. This is because consumers around the world will lose faith in the system as fiat currencies continue to lose their value.

He called for increase use and adoption of virtual currencies around the world because of their decentralized nature, which means they cannot be controlled by the governments but by the organic laws of the economy, particularly the supply and demand in the market.

He concluded that “Although the current speculative interest in cryptocurrencies has more to do with Blockchain technology than a loss of faith in paper money, at some point there will likely be some medium of exchange that becomes more universal and a competitor of paper money.”

FIRE:  Its obvious that digital currency is the future of money, but not in the form that it is today. Governments will eventually issue their state currency in the digital form, thus breaking away from fiat money.

Digital currency is more efficient from the point of view of printing, storing and handling costs and people in Cashless countries are already familiar with spending from cards and not touching physical cash for months. 

So, indeed - the end of fiat money may be inview! 


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