How Virtual Coins Are Reshaping The Geopolitics Of Money
In times of rapid change, experience could be your worst enemy — J Paul Getty
Who controls the issuance of money controls the government! — Nathan Meyer Rothschild
The year 2018 signals a new chapter in the evolution of cryptographic currencies (cryptos for short). Cryptocurrencies, particularly Bitcoin and Ethereum, are now beyond being called ‘experiments’. Ripple (XRP) has already exceeded Ethereum, (ETH) in market value. Ripple’s market value stands at $132 billion eclipsing Ethereum’s market value which stands at $96 billion behind Bitcoin which is a staggering $257 billion in market value.
Mainstream stock exchanges are now offering futures contracts on Bitcoin. Other currencies such as Ripple, Monero, Zcash are now out of the veil of obscurity. They are now traded by housewives who chat nonchalantly about the future of cryptos. Each crypto has its own unique proposition e.g. Ether is a token for internet 2.0, Monero and Zcash provided added privacy and Ripple is a token of a completely new payment system. These tokens are now transcending national boundaries with important geopolitical ramifications.
Cryptos are creating a new paradigm where money has become more abstract. The introduction of new cryptos including Central Bank Cryptos can cause schisms with existing monetary systems and nations — a phenomenon very similar to ‘Plate Tectonics’ that studies colliding continental plates redefining the map of the world.
Therefore, I call the changes in global monetary dynamics ‘Crypto Tectonics’. This article studies the rise of newer virtual currencies, their unique selling proposition and economic value. Finally, it studies their impact on the global political and economic landscape.
The Concept of Money Is In a Flux
The Bretton Woods agreement, during World War II linked the value of money to gold i.e. to a scarce commodity with important, practical use cases.
On August 15,1971, the US moved away from pegging currency to gold.