Is it the end for Bitcoin?
When it arrived at the scene, many thought it
was just this craze that would eventually pass,
this internet funny money that was bound to eventually fail.
But it kept pushing and growing.
Now imagine a battle between the dollar,
the world's standard currency, going digital and
then going head to head with Bitcoin,
the undisputed champion of crypto.
This showdown is real, and it's happening
in a bank account near you.
Bitcoin has drawn power away from traditional currencies, the
nation states that print their very own money.
And it's no surprise that governments feel
bullied and threatened by the technology.
And that threat just keeps on growing.
Since the inception of Bitcoin, thanks to its
open source coding, a vast array of crypto
children have spawned over the years.
And maybe now, more than a decade later,
it's time for the nation state to fight
back with their very own versions.
So who will be the victor?
Unfortunately, we don't yet know, but governments
will certainly make a strong attempt at
recapturing control of this territory.
In this video, we'll be pitting Bitcoin against
the digital dollar and exploring ideas like, will
the digital dollar take over normal currencies?
Will it take over Bitcoin?
And what can we learn from the past?
See, in early March, the White House
issued a statement that appeared to twist
the clamp down on cryptocurrencies like Bitcoin.
And at the same time, it appears
that they're seriously looking into creating a
CBDC, a Central Bank Digital Currency.
Is the US government attempting a pincer movement
on crypto technology, essentially surrounding them with no
escape? Doing this not only by coming up
with their own digital dollar, but also by
forcing them back through the use of regulations.
I mean, Bitcoin has survived many scares in
its time, only with each fall allowing it
to grow back stronger and stronger.
But how would it fare against this kind of an attack?
of a digital dollar, with one of the biggest
polls being the ability to distribute government resources to
the poor and will help take rip off merchants
like Western Union completely out of the equation.
They can charge up to 25% fees just to transfer money.
This makes sending money back home a very expensive activity
for many people living and working in the west.
The digital dollar will essentially be like
Bitcoin in that it's a digital currency.
The differences will be tied to the dollar itself.
This is very similar to stablecoins already on
the market, and in particular Dai, which is
literally pegged to the US dollar.
This makes perfect sense for commerce.
People and businesses have a hard time
properly operating on a volatile currency.
As you can imagine, it's quite the hassle buying
inventory or paying for staff with a currency that
could be worth ±10% next week.
A stable option is extremely important.
- I would like you to crunch those numbers again.
- Crunch
- Did it help?
This kind of digital currency makes a
lot of sense when there's a crisis.
The Bahamas is one of the very first nations to
adopt its own digital currency, and given the risks of
Hurricanes in the region, a region that I happen to
live in, it's thought that having a digital currency would
help get money out there when it's really needed.
- If you live on an island that has just been hit
by a major Hurricane, then you may not have access to
an ATM or bank branch and the central can help you
because it can be operated via mobile phone.
- Imagine if the government could instantly send
$500 to every bank account in an
area being smothered by a storm.
That's amazing.
We had stimulus checks a few years back and it took
six months or more for some people to receive a payment.
Obviously an upgrade is needed here.
According to a Fed report, these digital currency transactions
would be final and completed in real time.
That's amazing.
We are living in a time
where speed is crucially important.
Maybe the digital dollar will be a real blessing for all of
us, but it doesn't seem to be all fun and games.
There are absolutely risks involved.
There's the potential of a bank run during a
moment of financial uncertainty, or simply losing your token
card could mean saying goodbye to your currency.
That doesn't make any sense.
Scary stuff, but not as scary
as what I'm about to reveal.
The most sinister risk attached to
the use of the digital dollar.
See, one of the key elements for the majority
of cryptocurrencies is the anonymity that they offer.
Perhaps the clues in the title crypto is anonymous,
but much like how social media sites harvest our
personal information, selling it to the highest bidder, and
how social media giants allow government entities to monitor
your data in real time, digital currencies can also
be used for nefarious purposes.
Take China, who is perhaps the first
major nation far along the road to
having their very own digital currency.
They also seem to be leading the way
in how to run a dystopian state.
The digital Yuan appears to be building on
the controversial social credit system, something that was
quite literally a Black Mirror episode first written
as fiction, I might add.
In this episode, Lacie Pound is striving to improve her
score to a perfect 5.0 from a 4.2
In order to do this, she needs help from her
childhood friend Nene, who has a rating of 4.8.
Needless to say, this leads her to
an empty and superficial existence living to
boost her score, not to actually live.
This is eerily similar to what the Chinese
government has been trialing in recent years.
It's almost like they looked at that
episode and they were like
that, that is exactly what we need to do.
Here's a video of China's credit score system.
This woman's score would drop if
she bought too much alcohol.
Buying diapers, on the other hand,
Would give it a boost.
You think black mirror could sue them for copyright?
I mean, they could try.
They'd probably disappear, but they could try anyways.
What does this have to do with the digital yuan?
Well, according to coin desk, they say
what sounds like a far fetched dystopian
nightmare Is already a reality in China.
If you hang out with the wrong crowd,
Your citizen score, which is crucial for purchases,
jobs, travel, and so much more, suffers.
Pair this level of surveillance with the ability to
track any purchasing decision you make and you have
the perfect recipe for big brother on crypto steroids.
Naturally, having a digital dollar would open the
door to such a fundamental intrusion of privacy.
And tracking is only one piece of the puzzle.
What if the government decides to invalidate your
wallet or outright deny you certain purchases?
There are obvious pros and cons
on both sides of this debate.
What do you think about the
arrival of the digital dollar?
Let me know in the comments.
Here's my personal take on a number of factors.
Of course, all these numbers are hypotheticals based on
how I believe the digital dollar will be implemented.
But with the considerable scores for investment potential,
individual freedom and security, I can safely say
that Bitcoin and stablecoins are still the winners.
This doesn't mean the digital dollar
won't provide some healthy competition.
I would say as long as the digital
dollar starts and continues to be a voluntary
option, Then it's a good thing.
The worry for me is if we're forced to use
the government option with data eventually mined and tracked all
in the name of safety, an Orwellian level of control
that closely resembles a dystopian episode of black mirror.