The Transition Between Fiat And Bitcoin

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One World, Two Systems: Why Bitcoin And Fiat Must Learn To Live Together

Two competing economic systems eye each other warily across the ideological divide. One is based on complete state control and surveillance of its citizens; the other celebrates personal and financial freedom. The world holds its breath and hopes their mutual hostility does not turn into outright conflict.

No, this isn’t the Cold War: it’s the battle for supremacy between fiat and bitcoin. And as we know from the last century, no one gains from a war between two superpowers, whether the weapons are nuclear or monetary. Instead, the two worldviews must learn to live together.

The world’s separation into two parallel, competing economic systems has already begun. So rather than “pick a winner,” we need to understand what these two ideologies want to achieve, why each will dominate its own sphere of influence, and how we can navigate this time of transition. And we must ask whether, and how, we can secure cooperation and collaboration between these two so very different worlds.

Fiat 2.0

The rise of Central Bank Digital Currencies (CBDCs) promises to be no less transformative than bitcoin, though they serve a very different ideology: state control. From a fundamental perspective, CBDCs are as poor a store of value as banknotes, and even easier to “print.” But that’s only one reason why governments see a future in digital money. These CBDCs lay the foundation for a universal financial ecosystem where every transaction is monitored and everyone’s access to the economy is controlled.



Source link Bitcoin Magazine

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