You surely heard about a popular sentence “money makes the world go around”. Since economics is what makes us earn and spend money, you will surely agree with this statement. From the moment paper money was invented a couple of centuries ago to today, the concept was relatively unchanged. The way all of us have perceived this concept of money is about to be changed forever.
The reason is the appearance of cryptocurrencies back in 2009. You surely know that the first one was Bitcoin and that other ones we can see on the market were launched a couple of years later. The first couple of years were pretty hard for cryptos because almost no one took them seriously. However, some time ago, BTC managed to reach a high value.
In April 2024, its worth was roughly $61,000, which was a 70% increase if you compare it to April 2024. Surely, this worth has made it popular among people who haven’t even heard about it before that. Therefore, a lot of them have started trading. If you would like to take a look at how you can do that, be sure to check bignewsnetwork.com.
Nowadays, we can hear some voices saying that Bitcoin could become a new official global currency. We would like to elaborate on this topic a little bit.
What About Central Banks?
As we’ve said, the first couple of years were pretty uncertain for cryptos. Especially when it comes to recognition from the official institutions. However, it needs to be said that these institutions are now considering how they can make this concept legit. To be precise, some of them have decided to create cryptos of their own. The simplest example is Yuan Pay, which was created by the Chinese government.
Furthermore, we can see that voices who claim that some of the biggest central banks in the world are thinking about creating the environment for cryptocurrencies to enter the legit part of the game. One of the reasons was that some of these have expressed their concerns about the dominance of the US dollar over other fiat currencies. Some even say that this dominance threatens developing countries.
So, nobody should be surprised if we can see the consensus about introducing BTC as a new dominant currency. Sure, this would be a whole new story, since this is something that the world hasn’t experienced before. We are not talking about technology, we know that these requirements are met. We are talking about the procedures mainly accounting, taxation, and all other significant ones.
Why Should This Happen?
Since 2008, when the global financial crisis started, there are a lot of stories about how the global economy will never be as stable as it was before that. There are a lot of different warning signs about consumers being overwhelmed with debt. If you take a look at some researches from a couple of years ago, you will see that the level of debt is higher than it was during the crisis in the 1980s.
One of the most obvious examples is the one we can see in the United States. According to financial experts, the debt levels are at their peak and they were higher only in 1929. You know what happened then, right? In 1929, humanity faced the biggest global financial crisis in modern times. At some point, these levels of debt will be too high to handle. So, something would need to be done about it.
That’s why some financial experts are thinking about repairing the whole situation by including digital currencies in legal finances. It is explained by reading one of the segments in Keynesian economic theory. We are talking about boosting growth by increasing the demand for consumer items. Therefore, we are talking about one of the most important reasons why Bitcoin could save global finances.
Paying Taxes with BTC
Using Bitcoin as a new global currency will be possible if all the countries decide they want to accept it and make it a part of their, let’s say normal economy. That would mean that the BTC is accepted as a legal method of payment. Without any doubt, this kind of recognition would be a great boost to the idea of increasing general acceptance. That’s why there is some news that would make crypto enthusiasts happy.
Switzerland is the first country in the world that has decided to include cryptos in its normal economy. That means you can use them to pay taxes. Naturally, not all of them were included. We are talking about just Ethereum and Bitcoin, who are the most significant ones. Naturally, they would be translated into the Swiss national currency, Francs. Simply said, the government only wants to be paid in it.
A couple of years ago, we could see that Belarus was the first country in the world that completely legalized all the cryptos. Plus, they are untaxable until 2024. Surely, this is something that represents quite the potential for this European country. However, it needs to be said that these weren’t included in the normal economy, as is the case in Switzerland. But that doesn’t mean that this will not happen in the future.
If we were to listen to Jesse Powell, the CEO of Kraken, a crypto exchange, Bitcoin will become a global currency most definitely. He expressed his concerns about how weak national currencies are, and he predicts that they will have no future. Mr. Powell is not the only one who has been talking about this possibility. Certainly, we believe that even more people will talk about it than they do now.
In the last two years, people were excited about cryptos and their potential much more than before. Since there is a lot of interest in them, it’s not impossible to see some official institutions accepting them. All the trends are saying that we are about to see BTC becoming the global currency in the future. However, we will just have to wait and see what will happen.