on the crypto
These are just some of the factors that suggest that we are in a world where monetary and fiscal policies could be supported by those who are at opposite ends of the spectrum and, consequently, many question the effectiveness of modern monetary systems.
At this historic moment, a clear lack of trust has arisen in central banks globally. Consider the American Federal Reserve, for example.
While the Federal Reserve is thought to be an independent central bank, in fact it has its governors appointed by the President of the United States and often engages with the Treasury, which means that it basically works with the government.
This raises questions regarding possible conflicts of interest and market manipulation. There is no safe mechanism to prevent the Treasury from creating low-cost financing for the United States government by issuing more debt while the Federal Reserve cuts interest rates.
Meanwhile, in other G20 countries, central banks have become buyers of all types of debt, seriously inflating their balance sheets without real responsibility.
In light of this, it is not surprising that Bitcoin and Blockchain - the digital accounting technology on which all transactions are recorded - have gained credibility in the past decade.
The lack of confidence in the current financial system and the consequent demand for a more solid monetary system are increasing the appeal of cryptocurrency.
Given that the intrinsic structure of Bitcoin is designed to address the shortcomings of traditional currency management, many see it as a true alternative to traditional "money".
Bitcoin solves many of the problems associated with today's monetary systems. First, it is not a financial instrument designed by a sovereign institution that could serve any further reason; it was created by the public as an alternative to traditional payment networks and is a declaration of the democratic determination of the value of resources, as its very existence undergoes a continuous vote of confidence.
In addition, there is total transparency: the blockchain allows immutable accounting and ensures that the provisions of the original manifesto are not violated. Moreover, with Bitcoin there is no problem of oversupply, since the number of bitcoins in circulation is limited and self-regulating.
By comparing Bitcoin with legal currencies such as pounds or US dollars, or with goods such as gold, the cryptocurrency ranks well in terms of its ability to be exchanged and stored, while maintaining its independent qualities.
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