How Bitcoin and Blockchain are Disrupting the Global Economy
Updated: Sep 21, 2020
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Another way to look at Bitcoin is that it is a new type of global money. Especially now where countries are printing money at an unprecedented rate. This will eventually cause inflation and devalue the world reserve currencies like the dollar. A one world money is coming and it is inevitable at some point. Bitcoin was the like the first pass or the first take at a world money. A global money that is not controlled by a single government but shared across the world. We are a global economy. We are one people and we’re one human species. The old ways of working, of everyone creating their own money, they don’t work and they don’t work in a global economy. Bitcoin is the first step is using this blockchain technology to build a new type of global money. Whether it becomes Bitcoin or whether it becomes something else, is ultimately inevitable.
For a new global money system to work, it needs to be a combination of both decentralized and government system. Someone needs to step up and actually organize things. Total decentralization does not work, just like total centralization does not work. The mix of decentralization, and centralization is the answer. If you look at the US government, where you have a centralized federal government and then you have the states, where you could say is the decentralized arm of our government. It isn’t perfect but it does work. We need a centralized approach using the decentralized technology of blockchain.
The International Monetary Fund (IMF) keeps the global economy running today. They serve as an international bank, they have these international reserve assets called Special Drawing Rights (SDRs), or global credits that members can draw on at times of crisis. The IMF is a very good origination that could serve as that centralized clearing house, but if we could combine SDRs with blockchain, we could give it the decentralization that is needed. This would be a blockchain stable coin, tied to SDRs and overseen by the IMF. Another way to look at it is that we will have a United Nations of Money. Something like this is the way that things could possibly play out in this path forward to a one world money.
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Sir John Hargrave's Author of his very own book, Blockchain for Everyone:
Sir John Hargrave's book recommendation, Principles: Life and Work, by Ray Dalio: