IMF or International Monetary Fund amplifies calls for countries to boycott cryptocurrencies. They said crypto is risky and potentially exposes the risk of financial instability. Let’s exam their claims.
Here is a 1 min summary of the article if you want to skip the reading.
Financial Instability
From IMF’s aspect, financial instability means people will abundant fiat currency standards and use cryptocurrencies instead. It will create an uncontrollable environment for IMF to implement their monetary policies and stabilize the economy. The question is do we really need some large organization to control assets over everyone and make decisions for everyone. If such an organization is fair and square. The problem is large organization tends to work in their favor and they cannot represent everyone. Then the financial stability for them is stable but not for everyone.
Crypto Is Risky
Risky refers to opportunity. Unrisky asset tends to be stable and provides no opportunity for investors to gain because they are largest managed by a few people who already gained their advantages. Why risky is bad just because it fluctuates at a wider range? Rather if such an asset can continue performing upward, large fluctuations are just not as important after all. Such an example like Bitcoin which fluctuates at 90% of its range but gain multiple times of value after a decade. Compares to the fiat dollar which is stable for many years but the purchasing power quietly reduces to 94%. Of course one will prefer large fluctuations of Bitcoin to stable fiat simply because Bitcoin is more valuable but the fiat dollar continues devaluing.
Global Scale Regulations
IMF wants global-level regulations without even considering the privacy of each citizen. Global level regulations are global surveillance programs to monitor each individual. Global level regulations will have a global organization above each country to control each transaction. Such an organization can be ever-powerful to easily crash individuals if they are opposed to their view of the future. No one will want such organizations to have existed and monitor each other.
Destabilizing Capital Flows
Capital will flow away from the fiat system into the cryptocurrency system. That is not what IMF wants. They want a closed loop of money circulation such that they can control over. However, the financial system has been broken for a long time without solutions. Cryptocurrencies step up to fix the problem even it is temporary. People likely spent more on cryptocurrencies than fiat currencies in the coming years.
In Conclusion
The louder the IMF cries, the faster the crypto adoption will be. It is just the way institutions are losing trust and people are gaining their own choice to make whatever they believe to become the future they want to.
This article is also published in Cryptologist as parnership publication.Photo by Priscilla Du Preez Unsplash
Note: the post was shared on multiple platforms.Check out and join
You can refer my previous article lists
Digital Commodities- the Unlimited Resources of Commodities Has Born
Universal Income in Crypto Way
DeFi 1.0 is Officially Dead - Welcome to DeFi 2.0
How Many Ads Are Too Much - Floki Inu Ads Got Backfire
Bitcoin ATM Adoption and Its Potential Security Vulnerabilities
When Corporations Are Running By Everyone
The Fundamental Value Is Irrelevant
Coinbase At Huge Reputation Crisis
Regulations Start Hitting Crypto Exchanges
From Bitcoin Standard To Zero-Knowledge Proofs - Decentralization 2.0
Shiba Hits 1 Million Users (Army) Milestone: What is Next?
How To Avoid Crypto Scammers
Shiba Game - When Meme Meets Metaverse
Twitter CEO Steps Down - A Full-Time Bitcoiner
Change of Macroeconomy Landscape
CBDC Is Losing The Game
Brief History of Ethereum and How Ethereum 2.0 May Over Promise
Who Cares If Craig Wright Is The Real Satoshi
-------------------------------------------------------------------------------------Disclosure: The article was written by a delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters. You should not believe any words this author wrote or you may experience similar symptoms or even possibly become a nut job.
