Where crypto anarchy will end | Lex megatrends

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lex megatrends. The crypto revolution. Anarchy has not conquered Britain despite the predictions of the sex Pistols. But a version of this is becoming increasingly important in the financial world worldwide. Cryptocurrencies like Bitcoin have amazed investors and enter into the financial mainstream. Cryptos embody a core principle of anarchism, cooperation without centralized authority.

The financial statement is worried. In this video we predict where everything could end. The invention of Bitcoin in the nineties is attributed to the pseudonym Satoshi Nakamoto. He or she had the revolutionary idea of ​​creating a decentralized currency. Bitcoin shops are recorded in a public distributed main register, a database to which several participants access and manage them.

You verify transactions by solving cryptographic puzzles and are paid in Bitcoin. But Bitcoin is a flagship with errors. Criminals prefer the currency that sometimes resembles a Ponzi scheme. It is harmful to the environment. It is fleeting. And Bitcoin is too awkward to be practical for everyday transactions.

Nevertheless, Bitcoin did something really remarkable. It has been shown that a decentralized digital currency can move into billions thanks to healthy disagreements, low greed, sublime idealism and pure fear of missing something. At the end of October 2021, it was estimated at over $ 1 trillion. The crypto universe was estimated at around $ 2.4 trillion. The British GDP of $ 2.7 trillion is compared.

lex is still skeptical about the value of Bitcoin. We also don't like European bank shares or Brussels sprouts. However, we believe that digital assets will disrupt finance. Central banks fear that crypto's financial systems could destabilize. Bitcoin is 12 times more volatile than the S&P 500 index. A persistent bear market could bring it to the ground in one fell swoop. That would harm foreign investors the most. Stable coins that are linked to official currencies would increase the risks more than dampen if assets and liabilities were not agreed.

Official currencies help governments to keep control alongside police and armies. Companies fear that cryptos will undermine their power and financial stability. For this reason, China introduced a digital Yuan for retail transactions. The European Union plans to introduce a digital euro. In the end, Europeans could deposit part of their cash at the ECB or at national central banks such as the German Bundesbank.

central bankers are too high and powerful to operate private customers. Cutery banks would somehow do this for them. However, digital euros or dollars or pounds would not make any slight profits to the banks. The financing costs would increase if your own deposits decrease. In a crisis, customers could leave them in droves.

digital assets also offer banks opportunities. Many clever teams from crypto experts to advise customers and their own management. The official regulation of digital assets will make your work easier. Ultimately, low -friction trade in shares and bonds using the technology of the public main register will affect the profits for some, but will increase for others.

lex believes that the financial statement will have difficulties in assimilating digital assets. But she assimilates it. Some cryptos will stay on the edge forever. But anarchism in finance, as well as in politics and music, is very susceptible to selling out. While crypto brothers take jobs in the city and on Wall Street, the idealists may ask themselves the question of Johnny Rotten from the sex pistols: "Do you ever feel that they have been cheated?"