In 2018, the world finds itself at a unique crossroads.
With fiat currencies failing around the globe at an alarming rate, citizens of all nations will soon have to make a choice, assuming they haven’t had to do so already.
The choice is simple. Will we continue to suffer the consequences of unlimited money printing at the hands of private banks? Or will we choose to adopt new, decentralized methods of storing and exchanging value like Bitcoin and Avesta?
The African continent, in particular, has a number of countries that have begun to see their fiat currencies collapse at freefall speed.
When fiat currencies fail, the daily endeavors of businesses and citizens change dramatically. People find it hard to obtain the basic necessities of life such as food, water, and energy as the cost of everything begins to increase exponentially. What costs fifty units of fiat currency one day might cost seventy-five the next.
While there are a handful of nations experiencing this very scenario right now during the second half of 2018, two stand out in particular: Sudan and Venezuela.
Fiat Currency Failing in Venezuela
Over the past several years, the Venezuelan Bolivar has entered hyperinflationary collapse.
Food and medicine have become scarce while the demand for hard currency and alternative currencies has increased
.
In Venezuela, merchants have begun demanding physical currency notes instead of credit cards. Yahoo News reports that seniors have recently taken to the streets in protest, demanding that their pensions be paid in cash:
Currency notes are in very short supply; in some markets, food and other basic goods can be purchased for three times less if the buyer pays cash. So seniors are desperate to stretch their income by paying in cash. Octo says he often has to get up at 3:00 am to go wait outside the bank and withdraw money.“If we have to pay with a card, we are getting robbed,” Octo explained. What could cost 10,000 bolivars in cash costs 40,000 with a card.
As a consequence of all this currency devaluation, some individuals have turned to mining bitcoin in order to survive.
While exchange rates for their local fiat currency continue diminishing precipitously, the exchange rate for crypto is rising. This inverse relationship is the main reason why crypto adoption will continue to increase.
Sudan is also facing circumstances similar to that of Venezuela.
Fiat Currency Failing in Sudan
Sudan is now suffering the second highest inflation rate in the world as of 2018, just behind that of Venezuela.
In response to an abrupt devaluation of the Sudanese Pound, banks have limited the amount of currency anyone can withdraw from their account.
While in theory, this prevents the Pound from devaluing further by restricting people’s ability to trade Pounds for other currencies, in reality, it cements the idea that the currency has reached a breaking point and initiates further panic.
Sudan’s inflation rate has skyrocketed to a record high of 122%. #Sudan has surpassed South Sudan and now has second highest inflation rate in the world after Venezuela. pic.twitter.com/vIlCEvEDfi
— Prof. Steve Hanke (_hanke) January 28, 2018
Crypto, Avesta, and the Solution to Fiat Currencies Failing
Everyone wants to preserve their wealth and way of life. With crypto, this is possible no matter what happens to fiat currencies. Fiat currencies failing will no longer be a problem.
Once platforms like Avesta have reached mass adoption, the world will see its inflation woes wither away. As written in the Avesta whitepaper, the goal of Avesta is to
spark a revolution in cryptocurrency that leads to mass adoption and an environment where cryptocurrency is used at point of sales.
Once this has been accomplished, economic systems in Africa and elsewhere will have a chance to stabilize. Citizens of the world will be able to conduct fast, affordable transactions with currencies that have intrinsic value without worrying about fiat currencies failing.
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