The 2020s will be a Breakthrough for Cryptocurrencies
Deutsche Bank analyst Jim Reid believes that due to the instability of the traditional financial system, the third decade of this century should be a real breakthrough for cryptocurrencies. The other day, he released his own report Imagine 2030, where he pointed out that with increasing doubts about fiat currencies the popularity of cryptocurrencies will grow. “The forces that have held the current fiat system together now look fragile and they could unravel in the 2020s. If so, that will start to lead to a backlash against fiat money and demand for alternative currencies, such as gold or crypto could soar.” – he said. Reid drew an analogy with the uncontrolled inflation of the 70s of the last century, which led to gold prices rise and caused the collapse of the monetary system, provided with precious metals. The report says that central banks failed to cope with global inflation. This was done by China, which provided a huge amount of labor. But this cannot last forever since the peak of the PRC population at working age was reached 10 years ago. All this can make governments of different countries take more debts and IOUs, which will be covered by other IOUs. But such actions will only delay the inevitable global financial crisis, the largest in the entire modern history of mankind. This will increase the popularity of alternative financial assets - cryptocurrencies. “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.” – Reid said.