Bitcoin Consuming Fiat like a Black Hole, 1 Satoshi Now Worth More than Several National Currencies
- Bitcoin’s smallest denomination now worth more than many national currencies
- Several countries developing their own central bank digital currency
- While the world’s leading cryptocurrency continues to grow, national currencies are being devalued by the governments.
Amidst the ongoing environment which has recession looming on the horizon, countries running amok with hyperinflation, trade wars, and geopolitical issues, national currencies are losing their value constantly.
However, sometimes governments devalue their own currency deliberately against another currency. It is basically a tool used by monetary authorities to boost exports, shrink trade deficits, and to reduce sovereign debt burdens.
This tool, however, can also have intended consequences that are self-defeating. These negative effects involve uncertainty in global markets that can spur even recessions.
Brazillian real is one such example that has plunged substantially since 20011 but this steep devaluation couldn't’ offset problems like plunging commodity prices and crude oil, resulting in a sluggish growth in the country.
“Bitcoin Gives You Privacy, and Takes the Government's Away”
On one side, we have national currencies that are controlled by governments, at times printed out of existence. On the other hand, we have Bitcoin, a deflationary digital asset that offers a way out of the crisis designed by governments by creating the fiat money out of thin air.
Iranian Rial, Vietnamese Dong, Indonesian Rupiah, Guinean Franc, Sierra Leonean Leone, Laotian Kip, Uzbekistani Som, and Venezuelan Bolívar Soberano has much less value than 1 Satoshi that is 0.00000001 BTC.
As put by crypto enthusiast Rhythm Trader,
“Bitcoin is consuming fiat like a black hole.”
1 Satoshi is now worth more than:
1 Indonesian Rupiah (IDR)
1 Vietnamese Dong (VND)
1 Iranian Rial (IRR)
1 Guinean Franc (GNF)
1 Sierra Leonean Leone (SLL)
1 Laotian Kip (LAK)
1 Uzbekistani Som (UZS)
Man, I'm gonna run out of space at this rate..
— Christopher Bendiksen (@C_Bendiksen) June 26, 2019
It won’t be long before Bitcoin takes over every currency out there.
Meanwhile, in the wake of the issues with fiat currencies and sanctions, various countries are also taking a special interest in cryptocurrencies.
We have already seen Sweden along with Russia, Iran, Venezuela, and lately China considering their own central bank digital currencies. Soon, every country will have their skin in the game.
Countries known to be developing their own central bank digital currency:
Only 189 more countries to go. Eventually every country will be in the game.
— Pomp 🌪 (@APompliano) July 11, 2019
“Digital fiat gives government privacy and takes yours away. Bitcoin gives you privacy, and takes the government's away,”
points out Rhythm Trader.