Many bitcoin opponents argue that bitcoin burns a lot of energy for mining which is a process to maintain operative and secure the network. Of course, most of those people arguing about this aspect of bitcoin live in countries where the monetary system has not failed yet.
But if you ask people living in countries like Venezuela, Hong Kong, Syria, Lebanon, Iraq, Chile, Iran, or other countries with similar problems; Which is more expensive bitcoin consuming energy or their fiat currency consuming their freedom and privacy?
In many of the countries mentioned above riots have exploded and authorities are using the fiat money as a tool to suppress the protests. Limits and banns are being placed everywhere preventing people from accessing their money while bringing down the value of those fiat currencies until becoming worthless completely.
This mostly reminds me of scam ICOs that lock investors’ money while scammers dump their tokens. Fiat money might be the biggest bubble in human history.
Deutsche Bank published a research a few days predicting that Fiat money will not survive the next decade and that gold and bitcoin will take their place.
Eventually, it is possible that inflation will become more and more embedded in our system and doubts will rise about the sustainability of fiat money. The demand for alternative currencies will therefore likely be significantly higher by the time 2030 rolls around. Will fiat currencies survive the policy dilemma that authorities will experience as they try to balance higher yields with record levels of debt? That’s the multi-trillion dollar (or bitcoin) question for the decade ahead, reads the Deutsche Bank research.
Deutsche Bank is one of the biggest banks in the world and it is actually having financial difficulties cutting a large part of its staff. It is normal that banks are not friendly with crypto as cryptocurrencies threaten their business model and we are used to hearing bankers bashing bitcoin and cryptocurrencies in general, but a bank making this optimistic prediction about bitcoin is something new.
This is a bold prediction about the fiat currencies extinction and many may laugh at it. But if you see the big picture with the unsustainable global debt accumulation and the helicopter money everywhere in the banking system (which mostly is called with complicated names we talk about in this article) the prediction becomes more realistic.
Another aspect of our society demographics that makes the fiat currency extinction more probable and the old financial system obsolete is that millennials got their first impression about our financial system during the 2008 crisis. Millennials are usually considered those born between 1981-1996 which are actually 24-39 years old, and in the next decade, most of the wealth will transfer to this generation that has a lack of trust in the traditional financial system.
The new generation is becoming every day more aware that money should separate from the state. Governments were not designed for a world with the level of connectivity that the internet and bitcoin make possible. Riots are spreading everywhere in the world and elites will not allow this change easily.
Satoshi Nakamoto, who probably was very angry with our monetary system, instead of fighting the actual system he created bitcoin, a model that makes obsolete the actual fiat money.
“In order to change an existing paradigm you do not struggle to try and change the problematic model. You create a new model and make the old one obsolete.” ― Buckminster R. Fuller