If No One World Crypto, What Is Plausible?

While the existence of a one world cryptocurrency isn’t a plausible economic reality, cryptocurrencies can, and do, offer real world value.

How Realistic Is The Idea Of A One-World Cryptocurrency? 2

A one-world crypto or fiat currency is seductive in its simplicity, but doesn’t serve anyone’s economic interest in the long term.

Here’s why.

How Realistic Is The Idea Of A One-World Cryptocurrency? 1

Is it plausible for a single cryptocurrency to replace all fiat currencies?

That is, can there be a crypto-one-world currency?

Crypto Perspective 8: Is It A Currency?

While adoption isn’t widespread enough for Crypto to be used in daily transactions, they are used by community members for transactions between themselves.

Crypto Perspective 7: Is It A Currency?

Arguably the biggest criticism Cryptos get is that they aren’t “currencies”. Which, of course, begs the question, what is a currency, and where do Cryptos fit?

Crypto Perspective 6: Uncorrelated Asset?

When markets crash, they tend to crash together. A true test of how uncorrelated BTC can be is whether it moves in lockstep with other markets during a crisis.

Crypto Perspective 5: Uncorrelated Asset?

Perfectly uncorrelated assets are important to asset managers as they allow for effective portfolio diversification. Which is where Crypto supposedly comes in.

Crypto Perspective 4: Inflation Hedge?

Relationships between asset prices and economic variables are always in flux, Crypto and gold included. Categorizing assets as “this”/“that” blinds us to this.

Crypto Perspective 3: Inflation Hedge?

Moving on with our discussion of the problems of categorizing Crypto, we come to an important question – do Cryptocurrencies serve as a hedge against inflation?

Crypto Perspective 2: Risk Asset?

Is Crypto a safe haven? Is it a a risk asset? From an either/or paradigm, one’s answer to the first question determines the second. Does it have to be so?