The One Simple Reason Bitcoin, Ethereum, And Other Cryptocurrencies Will Not Succeed

I have a fairly short, quick, post today. I began really thinking about this a few weeks ago and shared my initial thoughts on the Millionaire Money Mentors forum. I’ve always been a bit skeptical of Bitcoin, Ethereum, Dogecoin… all the “random” cryptocurrencies, because they are all “made up” wealth values. Yes, I know all the economic basics that ANYTHING can be a storage of wealth. Even gold, the dollar, blah, blah, blah are just storages of wealth.

But I said this was going to be a short, quick, post, so here’s the one simple reason…

Major World Governments Are NEVER Going To Give Up Their Financial Power To Control Economies

Do you think the US is going to give up control of the dollar ($) and being able to print money whenever it wants? No major government is ever going to give up that control. In the US, if Bitcoin was allowed to thrive independently, and it grew large enough, enough people were using Bitcoin and not using the US dollar anymore, it would DESTROY the value of the dollar. And once the dollar is destroyed, the government would not be able to control much of anything. It definitely wouldn’t be able to control inflation and cheapen it’s own debt by printing money (in general when you print money, it devalues the existing money’s value a bit — good for the government, bad for you).

Now, fans of Bitcoin and the other cryptocurrencies would tell you that’s WHY Bitcoin needs to succeed. They would say Bitcoin and others would give you a STABLE storage of value, because it wouldn’t (and maybe couldn’t) be “printed” on the government’s whims. That may be true, but it’s not going to be allowed. No way.

So What Will Happen With Cryptocurrencies?

I believe each world government will creates it’s OWN cryptocurrency. For example, the US will have one that is tied to the dollar. The US may eventually transition all dollars to the crypto version. Maybe in 20 years, there is no more printed money. And then eventually, with each country having it’s own cryptocurrency, money will move from country to country kind of like it currently does with global exchanges.

That’s it. I told you it would be short.

Permit me to issue and control the money of a nation, and I care not who makes its laws!

Mayer Amschel Rothschild

The government will never give up control of its currency.

Mr. Hobo Millionaire

Mayer Amschel Rothschild knew it way back when, and I’m repeating the same thoughts now in relation to cryptocurrencies. So, what say you?

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Written by Mr. Hobo Millionaire
I blog about money, financial independence (FIRE), life, and entrepreneurship. I got rich slowly (over 20+ years) with a niche software business. I also failed at a number of other things (and mild success with a few others). I share what I did right along the way, and a lot of what I did wrong, with a goal to encourage you think differently about life and money.