Currency Wars: Hawkish on Crypto and Fiat

Even as Istanbul banned Crypto currency in April, the Turkish nation has begun to initiate peace talks with the Taliban.  These are giant steps even as the US has determined to pull it’s troops out.  War has always been a means for some developed nations to increase country financials.  However, in 2008 the US used quantitive easing as a way to inject capital into the economy.  And that worked, however by 2020 the US economy was already in an economic downturn well before the pandemic hit.

What was going on? Americans and Nationals everywhere we’re exasperated.  It is ironic that Crypto currency like Bitcoin are skyrocketting during a time of massive financial upheavals.

Much like in 2008 when the world economy was upturned and cryptocurrency was introduced as a solid Fiat alternative–a decentralized currency unattached to the Federal Banking System.

Unfortunately, real creypto didn’t last long as it began to be “bought and sold” with Fiat currency. Currently Bitcoin sells at $40k+ per coin.  And the company itself is worth over 2 billion USD.  Bitcoin has breathed life into the flagging USD to which it is “pegged.”

This would explain why nations like Turkey and others might be reluctant to embrace it, as it sucks money out of the country into a foreigner financial system.  It also makes relevant the USD which had taken a huge hit in recent years with large economies like Russia and China dumping dollars and China becoming an official world reserve currency in 2016.

Currently there are over 4,000 digital currencies in existence, whereas in 2018 there were only 1,658 according to data from Investopedia.  However, the way Crypto is actually used matters and shrewd nations like Turkey know this. Digital currency has long existed as many people use credit and debit cards and EFTs. However, a true Crypto would comprise it’s own value in a closed system–not dictated by common Fiat. Some will get it–most will not. 

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