Nobody lives in a bubble. Cryptocurrency transactions can happen without any government blessing or bank involvement, but some public acceptance is needed for public confidence to expand.
Networks increase exponentially in value with the addition of new members. This has been true for the telephone, fax machines, email, and social media. It is even truer for cryptocurrencies which are just an evolution of the Internet and mobile network toward the transfer of value.
Today about 19% of the world population has bought some kind of crypto. Some estimate that by 2043 Bitcoin will be used by 50 of the people on Earth. To get there, we must give the average investor and user more confidence. And governments can play a key role in building it.
China’s Run Toward Crypto
Bitcoin might as well be the first real global currency. It travels boundaries easily, not like gold which is cumbersome to carry around and hyper-regulated. It doesn’t need currency conversion when you purchase from one of the increasing vendors that accept it.
It just suffers from speculation and wildly changing values. That’s why some governments are looking into building their own cryptocurrency by pegging it to something of value.
China’s communist government understands the threat posed by free cryptocurrencies, which has practically outlawed. On the other hand, it sees a great opportunity in building a state cryptocurrency to use for international exchanges and therefore dumping the dollar.
Some recent commentary stated that China plans to back its crypto with substantial reserves of gold. Both China and Russia have recently increased their gold reserves substantially getting to 1,890 tonnes and 1,842 tonnes respectively.
That’s why blockchain has been declared strategically important by the Chinese and why Bitcoin immediately jumped in value. It is not just a run toward a technology advantage, it is a bigger strategical move.
Bitcoin Always Wins In The End
Despite the Chinese, Facebook, Ripple, and other major players each pushing some type of Stablecoin that might “undermine” other cryptos, Bitcoin always comes up as the winner in the end.
Markets are looking for reassurance and every major project that supports crypto, in general, empowers the evolution of BTC and other major cryptocurrencies. Market trends have shown it over and over.