Today’s financial crisis has exposed some of the more fundamental flaws in our current understanding of finance, and the measures we take to manage it. The currencies they use to trade their debt have lost value against their competitors, leading to a new level of stress for financial institutions. To make matters worse, this is not the first time that the dollar has been used as the currency of international trade. In fact, since its inception, the dollar has served as the international standard currency for commerce and payments. The US was the world’s first country to decide on its own how to implement money into its economy and society, with the adoption of ‘The Paper Dollar’ in 1792. Today’s global economy demands closer ties between nations and greater accountability from governments on how they spend their limited resources. The dollar as a medium of exchange has historically played an essential role in enabling trade with other countries. But at this current moment in history, there is too much at stake for central banks to ignore it any longer. As a result, central banks around the world are exploring innovative solutions to transform their economies through the use of digital currencies like Bitcoin or Ethereum.
What is a currency?
Currency is a medium of exchange used as a medium of payment. It is made up of metal or other elements that can be used as money. There are many types of currencies including the United States dollar, the euro, the British pound, and many other forms of dollar.
How does the dollar work?
The dollar is a fiat currency. That is, it is based on laws and regulations that are set in place by the federal government rather than the states or cities that run the money exchanges. It is similar to the way that banks in the US operate. In order to trade dollars with other countries or use it in payments, you must purchase dollars at the local currency exchanges. These exchanges are often run by local banks or financial institutions. You also likely will use the same bank or financial institution to purchase and sell other assets like stocks or gas. If you want to trade between yourself and others, you will use a virtual currency exchange.
What happens when the dollar is the protocol of the money?
The dollar has been the primary currency of international trade since 1792. When the federal government decided to issue its own money, it created a special paper dollar known as the “dollar”. The dollar was printed and circulated as money throughout the United States and world, and it still is used as money today. But there is a catch. Since the dollar was based on foreign trade, it became less attractive to trade with other countries. As more countries became attracted to the dollar’s greater liquidity and volatility, its value plummeted. In fact, the dollar’s value plummeted by over 90 percent between 1793 and 1921. That is, during this time, the dollar became a less attractive investment for investors around the world. As a result, more and more countries began to use other currencies as their de-facto primary money.
Is Bitcoin right for global payments?
For all the wrong reasons, many people are now asking whether or not Bitcoin is the right solution for global payments. To be sure you understand the basics of Bitcoin, here are a few facts to get you started. Bitcoin is a cryptocurrency. That is, it has a blockchain database that holds all of the transaction data. It is similar to the way that landlines and telephones work on a cellular or personal level. By using a database, people can efficiently store and transmit information. The blockchain database is distributed across the internet, which means that any peer-to-peer network can manage and interpret it. The blockchain database contains all of the data that makes up a transaction. That is, if you send $100 worth of Bitcoin to someone in one location, that transaction data goes into the blockchain database.
Bitcoin as a digital currency
Like all cryptocurrencies, Bitcoin is a decentralized digital currency. However, because the network on which the network runs is decentralized, different people in different locations can verify and verify again the same transaction. That ensures there is no single source of truth for the blockchain data. By creating a Bitcoin wallet, you can easily verify and send Bitcoin from anywhere in the world. You can send and receive money through credit and debit cards, as well as traditional banks and financial institutions.
Bitcoin isn't enough
Even since the Bitcoin rally in 2021, many hope Bitcoin can be a digital gold, rather than currency. Yet, Bitcoin has been fail of both hypotheses. No everyone will spend Bitcoin if it is too valuable and no everyone will spend Bitcoin when it went down becomes too little value and they would hold to gain momentum for the next bull run.
Stablecoins vs CBDC
Stablecoin, on the other hand, works better as a form of currency and they acted like the one. Only the problem is that the controllers of the stablecoins lack of accountability. Terra collapsed is one of the such example.
CBDC is another alternative but privacy issue is the biggest concern that scares people away of using it.
Dollar has been working for a long time and perhaps it can turn into a protocol that adopts the flexibility of stablecoin and low cost of CBDC to eliminate privacy issues and maintain accountability?
Conclusion
The financial crisis that led to the current financial crisis exposed a number of critical problems with the way that financial institutions manage and trade money. The currencies they use to trade their debt have lost value against their competitors, leading to a new level of stress for financial institutions. To make matters worse, this is not the first time that the dollar has been used as the currency of international trade. In fact, since its inception, the dollar has served as the international standard currency for commerce and payments. The US was the first country to decide on its own how to implement money into its economy and society, with the adoption of “The Paper Dollar” in 1792. Today’s global economy demands closer ties between nations and greater accountability from governments on how they spend their limited resources. The dollar as a medium of exchange has historically played an essential role in enabling trade with other countries. But at this current moment in history, there is too much at stake for central banks to ignore it any longer. As a result, central banks are exploring innovative solutions to transform their economies through the use of digital currencies like Bitcoin or Ethereum.
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2022 Prediction
2022 Prediction #1: L1 Scalability
2022 Prediction #2: L2 Bridges
2022 Prediction #3: Zero-Knowledge Proofs or ZKPs
2022 Prediction #4: Regulated Defi On-Chain KYC
2022 Prediction #5: Institutional Crypto Adoption
2022 Prediction #6: Defi Insurance
2022 Prediction #7: NFTs-Based Communities - DAO 1.5
2022 Prediction #8: Metaverse and NFTs
2022 Prediction #9: Web2 Companies’ FOMO
2022 Prediction #10: Time for DAO 2.0
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DAO The Way
DAO The Way Part 12
DAO The Way Part 13
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Learn How To Defi
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Crypto Comics
Crypto Comics - Who is Satoshi
Crypto Comics - What is Wallet
Crypto Comics - What is Coinbase
Crypto Comics - What is A Block
Crypto Comics - What is DeFi-2
Crypto Comics - What is Yearn Finance
Crypto Comics - What is Cold Wallet
Crypto Comics - What is Hot Wallet
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Crypto Comics - What is Wallet Address
Crypto Comics - What is Plagiarism in Web3
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Crypto Comics - What is Encryption
Crypto Comics - What is Consensus
Crypto Comics - What is Protocol
Crypto Comics - What is Stablecoin
Crypto Comics - What is ApeCoin
Crypto Comics - What is Tokenomics
Crypto Comics - What is APR
Crypto Comics - What is to The Moon
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Learn Web3 in 100 Days
Learn Web3 in 100 Days - #1 What is the Internet and How Relevant to Web3
Learn Web3 in 100 Days - Day 2: What are the Browsers and Servers
Learn Web3 in 100 Days - Day 3: What are HTTP Status Code
Learn Web3 in 100 Days - Day 4: HTML and CSS and JS
Learn Web3 in 100 Days - Day 5: What is programming
Learn Web3 in 100 Days - Day 6: Markup, Elements, Tags, and Hyperlinks
Learn Web3 in 100 Days - Day 7: Style Your Web
Learn Web3 in 100 Days - Day 8: JS
Learn Web3 in 100 Days - Day 9: SQL
Learn Web3 in 100 Days - Day 10: Front-End
Learn Web3 in 100 Days - Day 11: Front-End Framework
Learn Web3 in 100 Days - Day 12: More HTML
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Modern Economic Nonsense
Modern Economic Nonsense - Inflation and Incentives
Modern Economical Nonsense - The Astrologist's Way
Modern Economical Nonsense - The VUCA World
Modern Economical Nonsense - Zug Tax and How to Run your Own Monopoly
Modern Economical Nonsense - Participatory Economy
Modern Economical Nonsense - Economic Models
Modern Economical Nonsense - Tokenomic Models
Modern Economical Nonsense - Design A Reputation-Based System
Modern Economical Nonsense — The Money Problem
Modern Economical Nonsense — The Treasury Problem
Modern Economic Nonsense — Bitcoin vs. Real Estate
Modern Economic Nonsense — A very long term view
Modern Economic Nonsense — Banking Collapse
Modern Economic Nonsense — A Wall Street Legend
Modern Economic Nonsense — A Modern Alchemy
Modern Economic Nonsense — Founder goes ghosting
Modern Economic Nonsense — Anonymous cool or fool
Modern Economic Nonsense — The market volatility
Modern Economic Nonsense — The money shortage
Modern Economic Nonsense — The web3 scams or not
Modern Economic Nonsense — All about debts
Modern Economic Nonsense — Metaverse is still relevant or not
Modern Economic Nonsense — A Show of Recession
Modern Economic Nonsense — A Myth of Valuation
Modern Economic Nonsense — Inflation becomes irrelevant
Modern Economic Nonsense — A journey of money laundering
Modern Economic Nonsense — Consumer Sentiment Might Be Low
Modern Economic Nonsense — Is payment technology still relevant in high inflation environment
Modern Economic Nonsense — Recession is coming
Modern Economic Nonsense — We are at the bear market, now what
Modern Economic Nonsense — Invest like a cat
Modern Economic Nonsense — Bitcoin leads the market recovery
Modern Economic Nonsense — The dollar is dying slowly
Modern Economic Nonsense — The current stock market wants to go back to 2019 but ignore the technological solution of the future
Modern Economic Nonsense — Today's fear, tomorrow's cheer
Modern Economic Nonsense — An engineering recession
Modern Economic Nonsense — The market is broadening rug pull everyone
Modern Economic Nonsense — The self-fulfilling recession
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Modern Economic Nonsense — Crypto winter prolonged with high inflation persists
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Modern Economic Nonsense — The Bitcoin apocalypse is coming
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Modern Economic Nonsense — Banks are seeking shelter in cryptocurrencies
Modern Economic Nonsense — Inclusive blockchain
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Modern Economic Nonsense — Crypto companies' bankruptcy wave is healthy
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Modern Economic Nonsense — Crypto attracts more talents in the current market
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Modern Economic Nonsense — Gaming culture and crypto
Modern Economic Nonsense — Global crypto regulations are coming
Modern Economic Nonsense — Decentralization may not work as everyone expects it would
Modern Economic Nonsense — Government opens ideas to the public about cryptocurrencies
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Random Thoughts
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When Crypto gets into politics
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The banking system rules out the crypto market threat
The US Stablecoin Bill is coming soon
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We are in a recession, no doubt?!
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What Metaverse?!
Self-proclaimed Bitcoin creator Craig S. Wright won the legal case for ?1
Ethics of Crypto
Crypto hacking is inevitable
The parallel money system
The Crypto has no greed problem
Banks are secretly hoarding crypto
Why there is not crypto banking exist
Financial sanction to mixers
Why Gold System Comes Back
Your future landlord is buying crypto
Future of the blockchain
The Ethereum Merge
Crypto can help to create meaningful jobs
Crypto VC from WeWork to WeBack
Misconception about Ethereum Upgrade aka Merge
Misconceptions about the NFTs
Learning Blockchain through Python: Part 1
Opinions about Ethereum’s Future
Meta...verse?!
Arrested Tornado Cash Dev signals the next arrest maybe you
Bitcoin's Taro has a scalability doubt
NFT Repurpose
What Defi?! It is more like a Nofi
The future of the economy is looming again
Ethereum is winning in the coming short term but privacy will be once to win for all
AVAX Conspiracy
Lessons Learned from the Global Economy Crisis (NFSW)
Compound REKT
Helium + Solana = ??
You need insurance for current inflation
NFT licenses
My opinion of neural networks as a philosophy
The Fourth Dimension of the Crypto Universe
Threats of the Crypto Universe
Gambling of the Crypto Universe
Bitcoin Mining Energy Myth
NFT marketplace is quietly collapsing
A Dream of Interpersonal Computing
After Terra co-founder's Arrest Warrant
A disappointed boring Ethereum Merge
A disappointed First-Ever comprehensive framework
State vs. Individual
The currency crisis reaches its peak
My opinion about inflation in the future
When banks play double dipping
One of the biggest advantages and disadvantages in crypto
When fiat currency is volatile
The core reason why Defi is not working
What if you regret your crypto transaction
What Did the Bank of England just Do?
Decentralized Social Media is a BS
A trust issue
Kim Kardashian’s $1.26 million crypto ticket
How unnecessary the blockchain bridge is
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Yearn Finance Comic
Yearn Finance Comic - Part 1
Yearn Finance Comic - Part 2
Yearn Finance Comic - Part 3
Yearn Finance Comic - Part 4
Yearn Finance Comic — Part 5
Yearn Finance Comic - Part 6
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Curated Lists
Curated Lists - Web3 Culture
Curated Lists - Crypto-enabled Communities
Curated Lists - Crypto Philosophy
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Defi 101
Defi 101 - Part 1
Defi 101 — Part 2
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Thoughts
Thoughts about VC and PleasrDAO x BitDAO
The Crypto Market has Changed
The Myth of Inflation Hedge
The Myth of Stablecoin
The Myth of NFT
End of the Crypto Market?
The End of the Stablecoin?
Terra-UST Saga - How to repair the trust when there is no trust built on
How to deal with negative market sentiment
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Crypto VC Thoughts
Crypto VC Thoughts: Physical Assets vs Digital Assets
Crypto VC Thoughts: Digital Money Pushes Energy Companies to Innovate
Crypto VC Thoughts: GameFi Dilemma
Crypto VC Thoughts: Credit Oceans
Crypto VC Thoughts: The Death of Terra
Crypto VC Thoughts: Debunk Bitcoin Myths
Crypto VC Thoughts: Defense Crypto Investment Methods
Crypto VC Thoughts: New Type of Stablecoin
Crypto VC Thoughts: Crypto Business Cycle
Crypto VC Thoughts: Crypto Business Cycle 2
-------------------------------------------------------------------------------------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.