Due to the setbacks in the crypto market in the last year, many people are perceiving cryptocurrencies as a great risk, but is that fear justified?
The hoax of fiat money
To those who accuse all cryptocurrencies of being scams, I have news for you, the biggest fraud and scam in history is fiat money (the US dollar) since the US abandoned the gold standard in the 70s of the last century.
Why is this? Because since money stopped being protected by gold, the only thing that supports it is debt. Which means that there is no security in having fiat money.
Everything being as I have just explained, it is easy to realize that the only thing that strengthens or weakens the dollar in general terms is the trust or distrust that people place in the dollar and in the US economy.
Fiat money without a backing such as gold allows the US government (and the Federal Reserve) to issue as many dollars as it wants or thinks it needs. This is a totally failed system, because it is only capable of generating recession and inflation, depending on how quickly or indiscriminately the Federal Reserve issues dollars.
If there were a pattern (call it gold, silver, diamonds, or whatever), the US government could not issue more bills than what it could justify in its vaults with that asset under which its pattern guides. Because let's remember that dollars are simply Federal Reserve notes, it's that simple.
Cryptocurrencies are the path to prosperity
Cryptocurrencies, on the other hand, have never had support, more than the trust that all of us who use them daily place in them. But the fact that they do not have a backing in gold or silver or whatever, does not mean that cryptocurrencies do not have projects and technologies that support them, because precisely in this lies the strength of the strongest.
Because the mere fact of being supported by blockchain technology constitutes an important support for cryptocurrencies. Since they cannot be issued indiscriminately (and many of them even have a defined or limited supply), it makes them deflationary.
Also, since they are not backed by debt (unlike fiat money), they give cryptocurrencies great strength. Because cryptocurrencies are going to replace fiat money one day, that is a fact, and it is not a question of asking ourselves if it will happen or not; instead of that, we must ask ouselves when it will happen.
But even so, cryptocurrencies and fiat money are destined to coexist for many more decades; because many things will have to change in the world, and many developments will have to come about for mass adoption of cryptocurrencies to happen.
In any case, I believe that cryptocurrencies are the path to prosperity and wealth right now; And I say that without any regrets, despite the current bearish market scenario. Because if we know that the price of Bitcoin and many other cryptos are going to recover at some point (and we are sure that it will), then the current moment is ideal to accumulate as much as we can of the cryptocurrencies that we like, because this moment It is the one that whales are taking advantage of to accumulate, before sending To the Moon prices in 2023, or at least, that is how I perceive it.
And what do you think about fiat money and cryptocurrencies?