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In this article by Christopher Hamman the popular topic of Stablecoins vs Fiat money will be explored.
Since the inception of the crypto space in 2009, Fiat money has had a direct competitor to its operations and authority as a means of payment.
From around 2013, when cryptocurrencies started to gain traction and get recognition, many people have posited that the end of the use of fiat money is here.
While that may not be an exact scenario, we shall see fiat money come into direct competition with cryptocurrencies.
Fiat Money Reigned in the Twentieth Century
The twentieth century was the Century that defined how mankind, in general, shall interact going forward.
Paper money served as a means of value that depicted how people exchanged goods, services and even held value.
This created the foundation for research and development into technology which has replaced many aspects of the economy that fiat money once held sway.
The Twenty-First Century is a Century of Massive Disruptions
The twenty-first century holds quite a bit of surprise.
Many people may not know this, but the Twenty-First Century holds some of the greatest disruptions to ever cross paths with humanity.
If you thought technologies such as the internet, Nuclear Weapons, Viruses, Genomics and so on were all that Humanity has to offer, then the twenty-first century shall shock you even more.
All of these shall come from one single source of finance: Cryptocurrencies!
Stablecoins refer to those cryptocurrencies which have achieved some form of adoption by the public, have uses which have been generally proven and accepted and are truly stable in every sense.
Stablecoins are going to be the first of the cryptocurrencies.
They are going to herald a new era of finance which most people aren’t ready for yet.
Stablecoins as at the time of writing this article holds several uses.
Already, we are seeing the creation of tokens on the Ethereum blockchain.
Ripples’ XRP is also following that route.
While everyone’s attention is on Bitcoin alone which is the first of the cryptos, we have to see what Bitcoin has wrought!
Bitcoin Has Created a Future Driven by Math
Fiat money has been able to keep up with changes (up till 2009) when Satoshi Nakamoto published a paper which provided a basis for the direct challenging of all Fiat money systems.
So far, because most people have their confidence in the ability of Nation States to pay their debts and obligations, they have lost their ability in mathematics.
That faith is going to be revived soon!
Many Countries are Going Rogue – Stablecoins the solution!
The old era of sanctions is doing little or nothing to those pariah Nation States who have hitherto been punished financially.
Stablecoins have provided a way out for them.
This, of course, increases the odds of a united yet multipolar World.
The one fact many of the great state actors can’t get out of their heads is how they have lost grasp of the technologies they once ruled over.
New cold Wars are on the horizon.
It is only those state actors who can figure out how to use the crypto space to their advantage that shall hold sway in the new order of things.
Stablecoins Offer More than Just Money
Because stablecoins offer more uses than just the world of money and finance, we shall see more use-case scenarios spring forth.
From real estate to communications, household items, retail and even love!
We shall see how stablecoins are going to create a new order where it isn’t about how much you have, rather it is about how much you know.
So, it is those that know that shall rule over those that have.
This knowledge expressed in mathematical expressions that everyone can use are what we currently call cryptocurrencies.
This is where fiat money falls short.
A New Way of Doing things is Emerging
As humans, we have depended on centralization for the past one and half centuries.
Is it this centralization that has determined who sits at the top of the pyramid and who runs things.
Now, we shall see the creation of many pyramids via cryptocurrencies.
Stablecoins hold the key.
With their use and adoption by the general public Worldwide, new concepts shall emerge on how to use these wonderful assets that can rule over all human activity.
There would be no more masters of the universe who don’t understand how to innovate.
The new masters of the Universe shall be the innovators.
The Golden Age of Decentralization
When it comes to the arrival of the age of decentralization some critical issues must be considered first.
Fiat money systems aren’t going away. At least, not in their entirety.
They shall lose relevance. Especially in the developed world.
If developing countries would want to catch up, they can use cryptocurrencies.
However, issues of corruption, illiteracy, and ignorance, lack of technological development to name a few shall hinder the progress of such states.
A few innovators will be able to change this with the right kind of concept and some code!
This is how the age of decentralization shall emerge!
Fiat Money Shall go into Oblivion
When the knowledge of cryptocurrencies has now become so commonplace that every Child under the age of thirteen is taught about it, then we shall see the gradual fading away of the fiat money system.
This is because all money systems are driven by one thing: Trust.
When people start to lose that trust, then the money system is obviously on its way out of existence.
This is what is starting to happen in the battle between fiat money systems and cryptocurrencies.
While fiat money has pretty much invented all that we see and know, a time for its relevance is now coming to a close.
This is because fiat money can be hijacked and controlled.
Fiat money can be manipulated.
Fiat money can create and destroy at will without due recourse to process.
Fiat money can be created and destroyed.
Fiat money is unlimited credit, power without control.
Cryptocurrencies, on the other hand, must as a matter of the existence of necessity follow the Mathematical sequence that they were created to follow.
This then means that they cannot function in aberration to what they were created to do.
Cryptocurrencies aren’t infinite.
They aren’t subject to inflation.
Maybe that day shall come when an infinite cryptocurrency shall be invented.
That day isn’t today.
This is why Cryptocurrencies shall rule over fiat money.
What do you think? Shall cryptocurrencies rule over fiat money?
Please let us know in the comments!
Christopher is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy. You can connect with him on LinkedIn.