Most of us believe that Bitcoin and cryptocurrencies are changing the world. Indeed, they are doing it. But it is different when a politician comments in a positive way about them. A former governor for New Hampshire and three-term senator said that Bitcoin can change the world and ‘neuter’ central banks.
US Senator: Bitcoin Can Change the World
According to a publication made by The Hill, Judd Gregg, explains why cryptocurrencies could benefit the world economy. He says in this article, that a currency to be viable needs to be have something behind that gives value to it. As we know, fiat currencies are backed by countries and governments. Some digital currencies are also backed by countries, like the Petro, or the Cryptoruble.
Furthermore, he also compared Bitcoin with gold, claiming that the precious metal is scarce and has been accepted as a medium of exchange for hundreds of years.
Bitcoin is backed by an algorithmic structure that limits its availability and can be used as a storage of value. Mr Gregg says that people puts value on it because of these features and because they want to do it.
Judd Gregg says as follows:
“Bitcoin, however, is not a reserve held by central banks – at least not yet. Bitcoin and its emulators are out there. They are somewhere in the cyber sphere of digital technology, energized by the faith of those who developed them and those who accept them as having value. Bitcoin is alleged to be the currency of the future – a currency that is unattached to any nation, devoid of the politics of any government and free from the dominance of any central bank.”
Bitcoin could be much more than this. It could change commercial transactions and the way people holds money.
A Legitimate Currency?
If Bitcoin gets legitimated, then its potential can be even greater. He says that governments and central banks will lose the power to arbiter the world economy. That’s why, he claims that if Bitcoin succeeds, then central banks could be neutered.
These are the most important effects of a decentralized cryptocurrency. Even with so many competitors, Bitcoin is still one of the most decentralized virtual currencies in the market. Individuals are able to take the power of the economy, not central banks or policy makers.
The dollar keeps having value, says Gregg. It will have value as long as the American economy is viable and the federal government is at least marginally responsible in its accumulation of debt. As it happened with the Pound, there might be one day, when the US dollar would not be able to be the world’s reserve of value.
As time passes, the next currency trusted by the whole world may be Bitcoin or another cryptocurrency.
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Image Courtesy of Pixabay
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