The stock market had lost more than 3,6 trillion USD or the equivalent of 694 573 870 Bitcoin. The total mass of Bitcoins that can be in circulation is 21 million. We can say that the fair lost 33 Bitcoin markets. Each one has 16-21 million BTC in circulation (if we suppose that some of the coins are lost or lie on cold purses).
One can envision how big the stock market of the world is if it quickly lost 33 Bitcoin markets and still works. A substantial portion of the world’s wealth may vanish. The data tells coronavirus bites off supply chains.
Can Bitcoin Accumulate the World Market?
The fears and inflation are so harsh that folks prefer dumping stocks. Cryptocurrency goes down too. People buy necessary stuff before coronavirus comes to their home. The experts report that coronavirus cure will take 1-1,5 years to produce. The situation is showing us that masks and disinfectors can be much more valuable than Tesla Inc (NASDAQ: TSLA) or Facebook Inc (NASDAQ: FB) stock.
Bitcoin economy is not the exception. Andreas Antonopoulos said that Bitcoin can accumulate all the dollars on the planet, but this means one satoshi equals one dollar. Mathematically, it is possible.
But people won’t pledge money into a system where online casinos, betting services, shady exchanges, news websites, and of course, large mining corporations are holding a significant part of the total monetary supply. A large portion of fiat money is held by rich partnerships too.
Money Gain Value from Human Labor?
Cryptocurrency proponents, libertarians, all claim that the government is printing money out of thin air. They point at Bitcoin an altcoins as to the new golden standard of sorts. If you attach all the world’s gold to fiat papers, you simply won’t have enough bills. So fiat currency has no value other than human labor.
More people are born, and these new people ‘back’ money with their work. The world needs more money to operate. While China is not working, the world’s market falls because it is backed by their labor. It’s not about gold, oil, silver, or stocks.
Fiat Is Anonymous, Not Strong, Still Is Great
Fiat money is the only fully anonymous means of payment possible. Investment theorists who think that you can easily switch to virtual payments haven’t seen the situation in other countries. People will not be able to avoid taxation if all cash payments become virtual and traceable. They will not be able to purchase illegal things and give bribes. And hackers will constantly steal money from everybody, hiding behind TOR and VPN. They already show significant talent in cracking banks and blockchains.
This means the shadow economy players will have to start dealing with stuff they don’t want to deal with. Their number stands up to 50-80% in some areas. Old people are not ready to bank cards and cryptocurrencies. And the retail market is mainly based on cash, with local merchants breaking their ATM partnerships with banks. All thanks to increasing fees. In 2020, you could see a message ‘We are not accepting cards anymore’ in your pet food store that had a terminal earlier.
Unfortunately, the average fiat currency’s lifespan is 44 years. With some disappear after a year or three after inception. Then, another fiat currency appears and the cycle repeats.