In the 102 years since the inception of the Federal Reserve, the US dollar has inflated by 2,291.3%. Five days ago, China dumped $77 billion of US bonds which has sharply decreased US economic growth. The US dollar is rapidly being ditched as the world sobers to the fact that US Central Banks do not have any gold on reserve, the dollar is inflating exponentially, and the nation will never be able to make good on its debts. As emerging cryptocurrencies prove to be safer, more viable alternatives, some wonder if the US dollar will remain the world reserve currency for the remainder of the decade.
Decentralized Digital Currencies
The question is so prominent, so compelling, that the three-time #1 ranked independent financial advisement service Edelman Financial Services released a lengthy article acknowledged the legitimate influence of Bitcoin. In the article entitled Will Bitcoin Replace the Dollar?, the financial advisement company lists some of the possible implications if/when cryptocurrencies overtake centralized, government controlled currencies.
US Congressman Ron Paul has been on record saying Bitcoin could “destroy the dollar.”
In August of 2014, the CEO of Amagi Metals announced that it would stop accepting the dollar by 2017 and would only accept cryptocurrencies.
In an interview he gave with CoinDesk, Stephen Macaskill said,
Given these realities, Macaskill suggested that a large financial meltdown may soon occur. To Macaskill, the world isn’t far away from some type of cataclysm, to be followed by a period of mass protests, riots and extreme poverty. In this light, Macaskill sees bitcoin as a conservative business decision, one that positions his business to not just thrive, but survive.
“I’d rather be safe than sorry. I’d rather lose a little business sooner than later than end up with a lot of worthless paper which can’t even buy me a loaf of bread,” Macaskill added.
Already, more than 36 American cities in 20 states “have taken aggressive measures to abandon the U.S. dollar.”
Bitcoin Goes Mainstream
Edelman Financial lists some of the various everyday places you can pay with Bitcoin. Here is that list.
- The NBA’s Sacramento Kings, which lets you pay for tickets, team merchandise and even concessions at home games
- Overstock.com, a major online retailer
- Two Las Vegas hotel-casinos, the D and the Golden Gate, the city’s oldest, accept bitcoin for rooms, gift shops and restaurants — but not yet on the casino floors (although the owner of both of properties says wagering in bitcoin will happen soon)
- BitCoinShop.us, a website listing goods for sale on Amazon, eBay and other retailers that accept bitcoins
- CheapAir.com, an online travel agency based in Los Angeles
- The photo-sharing website Reddit
- Pizzaforcoins.com, which arranges deliveries from Domino’s and other pizzerias
- A bar in midtown Manhattan
- The dating website OKCupid
- A Subway sandwich shop in Allentown, Pa.
- An ATM in Vancouver
- The University of Nicosia, in the capital of Cyprus, accepts bitcoin for tuition payments
Perhaps the most interesting marketplace that exclusively accepts Bitcoin is Darkleaks. Darkleaks is a black market for “whistleblowers, blackmailers, and hackers” to buy and sell valuable information.
‘Radical New Economic System’ will Emerge from Capitalism
Best-selling author Joel Rifkin envisions a near-future scenario where the inevitable death of capitalism forces us into a radical new economy that is rooted in the internet and cryptocurrencies. He believes the vertically integrated model of capitalism is self-destructing where goliath corporations have “paper-thin margins” and small operations with little overhead are providing a more appealing alternative for consumers.
“This is the first new economic system since the advent of capitalism and socialism in the early 19th century so it’s a remarkable historical event and it’s going to transform our way of life fundamentally over the coming years,” Rifkin says. “It already is; we just haven’t framed it.”
Rifkin posits that 3D printing and the innovation of grassroots technology will erode the ground beneath the footing of centralized capitalist models. Price tags were once the most enticing aspect of a product; now consumers are questioning the necessity to buy products and brainstorming ways to make it cheaper at home.
The Guardian writes,
Every economy in history has relied for its success on the three pillars of communication, energy, and transportation, but what Rifkin says makes this age unique is that we are seeing them converge to create a super internet.
While the radical changes in communication are already well known, he claims a revolution in transport is just around the corner. “You’ll have near zero marginal cost electricity with the probability of printed out cars within 10 or 15 years,” he says. “Add to this GPS guidance and driverless vehicles and you will see the marginal costs of transport on this automated logistics internet falling pretty sharply.”
Rifkin is particularly interested in the upheaval currently rippling through the energy sector and points to the millions of small and medium sized enterprises, homeowners and neighbourhoods already producing their own green electricity.
First World Nations are the Most Primitive
Noam Chomsky, in a 2013 article called Will Civilization Survive Capitalism?, asserts that first world countries are the ones contributing the most to the pollution, waste of materials, over-consumption, and other unsustainable behaviors. He concludes that capitalistic countries are therefore the most primitive.
In future, historians (if there are any) will look back on this curious spectacle taking shape in the early 21st century. For the first time in human history, humans are facing the significant prospect of severe calamity as a result of their actions – actions that are battering our prospects of decent survival.
Those historians will observe that the richest and most powerful country in history, which enjoys incomparable advantages, is leading the effort to intensify the likely disaster. Leading the effort to preserve conditions in which our immediate descendants might have a decent life are the so-called “primitive” societies: First Nations, tribal, indigenous, aboriginal.
The countries with large and influential indigenous populations are well in the lead in seeking to preserve the planet. The countries that have driven indigenous populations to extinction or extreme marginalization are racing toward destruction.
As we stare off into the void, wondering what lies just beyond the predatory carcass of a dead monetary-market system that gorged itself on human suffering to the point of cardiac arrest, we must remember that we create the outcome. Whatever we demand and sweat over will greet us on the other side. As timelines converge and optimism clashes with pessimism, one thing is certain: passivity is a dying man’s game.