It is not a surprise that the price of Bitcoin is increasing, if for decades the increase in public spending and monetary printing without support has been one of the great problems of public administrations, the arrival of Covid-19 became the perfect excuse to print money and to mix public debt with private debt, in different parts of the world.

The paralysis of the economies worldwide increased the unemployment rate and the bankruptcy of companies. In many countries, instead of encouraging economies with tax benefits, an increase in taxation was carried out that hung the private sector, with the governments spending more and more money to alleviate the crisis.

With the national currencies being manipulated by the Central Banks, significant distortions are caused in the economic system, and it is then where the cryptocurrencies without the manipulation of the state intervention are revalued before a dollar in fall after the announcements of millionaire subsidies by the federal government from the United States.

The strength of cryptocurrencies like Bitcoin is based on an electronic money system based on a limited supply and a completely decentralized digital currency. This gives individuals assurance that governments will not start printing unsupported money and devaluing the currency in which they hold their savings.

Generally, in countries with devalued currencies and exchange restrictions, as is the case today, for example, in Venezuela or Argentina, citizens go to the black markets to buy more stable currencies (dollars or euros); however, with the large economic bailouts that have come out of the coffers of the European Union or the United States, cryptocurrencies have appreciated due to the lack of controls with which euros and dollars are printed. It is also more comfortable and less bureaucratic to buy cryptocurrencies through applications or the internet in these countries where the purchase of currencies has been restricted.

Cryptography provides an effective method for individuals to take control of their finances without the harmful intervention that States generate in it; for all these reasons, 2021 seems to be the year for the monopoly of Central Banks to begin to fall on the economies of nations, and people begin to resort to more decentralized exchange mechanisms that allow them to execute more agile economic operations, with greater security and fewer commissions from traditional banks.

It is evident that there is still a long way to go for cryptocurrencies to become the preferred option for many active participants in the world economy; however, the change seems to come very soon.

Image by rubns28 via Pixabay.com under creative commons license.


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