Hello,
Economics is not an exact science. It is mainly based on statistics, probabilities ...
There have been significant facts that have changed our human society, our lifestyles and our behaviors, here are some examples :
Creation of the first central banks
Bretton Woods Agreement
Computing and Internet
Blockchain technology, Bitcoin and cryptos.
The creation of Bitcoin in 2008 completely changes our economy. Bitcoin (and cryptos more generally) is a new money creation that does not come from banks or governments. But who pushes them to create their own cryptocurrency.
After recent announcements from Paypal, Blackrock and others, Tesla also announces their entry into the Bitcoin market. Elon Musk has a great influence. It is very possible that other companies will follow suit.
Thus, more and more companies will have a crypto wallet on their balance sheet. This will force states to make decisions and take further action on crypto regulation.
I think time is on our side because the longer states delay in making decisions, the harder it will be for them to ban cryptos. On the other hand, we can expect stronger measures against our favorite cryptos. They will have to "clean up" to promote their own cryptos. This year 2021 and the future years are likely to be strong in twists and effects of announcements.
It is difficult to predict what will happen. But such an emergence of new currencies, whether cryptos or local currencies, is in my view a clear sign that we are in a major economic transition.
We cannot know how long this economic transition we are going through will last. But there will be no surprise to see the emergence of new currencies and the disappearance of others. This process should continue throughout this transition.
Until the beginning of a new era governed by new economic rules that will further change our lifestyles and our behavior.
There are of course many other factors to take into account, but I just wanted to point out that in the many currencies created there will certainly be quite a few that will disappear.
When I got interested in cryptos and economics, one of the first economists who caught my eye was Friedrich Hayek and his book :
The Denationalization of Money (1976)
Pour une vraie concurrence des monnaies (titre en francais)
Thanks for reading my post and happy earnings :)
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