Bitcoin blockchain public cryptocurrencies replace financial system - 5 examples of how bitcoin, blockchain and public cryptocurrencies are changing money and the traditional financial system.

Whoever denies it, should assume it as soon as possible and the adaptation will be less traumatic. If it is a Public Administration, all the more so. It will be for better or for worse, but it is evident that we are living a time of continuous changes in money. Bitcoin and all other cryptocurrencies (both private and public) are revolutionizing a sector whose rigidity can be an obstacle in this transformation process.

Bitcoin blockchain public cryptocurrencies replace financial system

Web 3.0 consultant and writer Peter A. McKay gives Medium 5 paradigmatic examples of how money is rapidly transforming.

1. Developing countries want to adopt bitcoin as legal tender

So far, El Salvador has been the first country to adopt the main cryptocurrency as a legal tender currency. It was made official on June 9, 2021. And it has already found the first stones in the way, since the World Bank has responded negatively to the request of the country chaired by Nayib Bukele to help them implement the digital currency. What is significant, however, is that, after this, there have already been a few others, such as Panama, Brazil, Argentina, Mexico, Paraguay, Tanzania or Tonga, who have also expressed their desire for bitcoin to become legal tender.

McKay explains that developing countries see the benefits that cryptocurrency can bring them: some have very unstable local currencies, which need an alternative. This, in many cases, was to adopt the dollar, which, according to the expert, " is also accompanied by an inevitable American influence”. In addition, there are money transfers to expatriates, which, through traditional methods, are “slow and expensive. Quite the opposite of if they were done on a public blockchain network."

2. China is ahead in creating public cryptocurrencies

Many central banks, McKay points out, are considering the option of creating a public virtual currency. Without a doubt, the most advanced country in this project is China, with the digital yuan already in the process of being tested. In Spain, the PSOE presented a non-legislative Proposal in the Congress of Deputies proposing the implementation of a public digital euro.

Bitcoin blockchain public cryptocurrencies replace financial system

3. Cryptocurrencies are the majority in the use of blockchain technology

With data from CoinMarketCap, reflected in the Medium article, bitcoin's share in the crypto ecosystem has gone from 70% in early 2021 to less than 45% today. As for ether, it has risen from 11% to 17%. Considering, they explain, that ‘ethereum dominance ' is an indicator of demand for blockchain-based applications, the expert draws the conclusion that the market increasingly sees blockchain as a software development tool, and not just an economic one.

4. The Fed does not understand how inflation works

In the fourth of the symptoms that money is changing, McKay gives a slap on the wrist to the Fed (the Federal Reserve of the United States). He was struck by what Dan Tarullo, former Federal Reserve governor, said in a television interview, in which, to a question about future moves by the Fed's political committee, he replied that “there is no theory about inflation that can help make decisions from one meeting to another.” Ironically, the expert says that the answer is really surprising, given that “inflation is half the Fed's job"”

Bitcoin blockchain public cryptocurrencies replace financial system

5. The stock market is broken

In the last point of this article on how bitcoin and new technologies are changing money, Mckay talks about the black future that the stock market sees. Again it refers to an interview, in this case to a former stockbroker on the CNBC. This, the writer comments, describes a structure of the stock market that is a nightmare; in which the prices quoted on the Exchange are wrong and brokers have side agreements. As a result, he notes, “small investors get frustrated.”

# Bitcoin blockchain public cryptocurrencies replace financial system #