Bitcoin Can Change The Global Financial System
Bitcoin has seen unbelievable numbers as of late, as the worth of the cryptocurrency has skyrocketed over the last month. While that is the main talking point of bitcoin at the moment, people should also understand that bitcoin could be the key to solving the struggling global financial system.
This according to Rainer Michael Preiss, the executive director and money manager at Taurus Wealth Advisors. He says that the way the market stands now is based on debt with an endless supply but with limited borders. Preiss explains that because of this, it allows for "too much quantitative easing," which is caused by "too much debt and too little growth," and this is why bitcoin can solve the world’s financial issues.
Preiss breaks that point down by telling CNBC’s “Capital Connection” on Tuesday that "Governments are potentially having long-term issues with debt repayment, and the world is suffering so much debt. Maybe the world needs an alternative — in the sense that [bitcoin] is an asset-backed currency with limited supply,"
In fact, Preiss says he believes that bitcoins technology could exceed simply being a part of the financial market but it could become a type of social construct thanks to huge strides in AI technologies and continuing advancements in such fields.
Bitcoin's popularity is continuously rising while the trust in today’s financial society is diminishing globally. That being said, bitcoins decentralized currency system could really help the current state of the social aspect of it all.
This cryptocurrency is now reaching places all around the world and taking over the global market. Rainer Michael Preiss explained that "Bitcoin's market capitalization overtook Deutsche Bank just as of last week, so that shows you how to some extent the world and things are changing,”
BitcoinReview.com mentioned the huge spike in popularity for bitcoin recently and it was really all initiated by Japan’s recent legalization of the cryptocurrency for retail transactions. Once this happened, bitcoin reached an all-time high as of late May but there are still countries that are not ready for the change. China’s central bank specifically has actually taken away some of the bitcoin availability in the country due to its concerns over its volatility.
Preiss also touched on the concerns associated with bitcoin after the Wannacry ransomware attack earlier this month, which developed questions surrounding the cryptocurrency’s security. He said that these concerns are valid but then compared it to the dollar in the United States by explaining that it is the most common bill used for illegal transactions but it would make no sense to get rid of, or not use, the dollar because of that.
In closing, Preiss wanted to make sure people understood the current state of what bitcoin is by saying "The question that always comes is: Is it a currency? Well, that's maybe too limiting — it's much more than that, it's actually a token. It's distributed trust and distributed consensus."