Will the Looming Global Economic and Financial Crisis Be FollowedPosted by finterra on October 10th, 2018 World events are leading up to what many consider will culminate in another global economic and financial crisis that will be many times bigger than the 2008 crash. The question is, will this inevitable disaster bring about a change in the economic infrastructures and monetary systems of the world where blockchain technology and cryptocurrencies will supplant the old system that has failed? To answer this question, one has to first look at the current world situation. For example, geopolitics, wars, international sanctions, financial, economic, and currency upheavals happening to various countries, not to mention even past experiences of certain nations. All of these will give one a better understanding of the present global state and for one to come to some conclusion about the coming future. The following will give you a clearer picture or maybe the big picture. International Sanctions The tariffs introduced recently by the US government on billions worth of products from China imported into America and the tit-for-tat response from Beijing on US goods coming into China has turned into a full-blown trade war. And together with other serious international frictions, such as the US sanctions on Russia and Turkey as well as the re-imposed sanctions on Iran in August are causing greater political and economic instability, globally. The above events together with the wars in Ukraine, Iraq, Syria, and more recently in Yemen also have resulted in a seemingly polarization of nations, that is those who remain loyal to the western powers, those who have gravitated to the Eurasia alliance, and those caught in between. Dollar Woes The fact that the US Dollar is currently the World Reserve Currency with trillions printed through Quantative Easing (QE) and released into the financial system of the world, is like someone injecting water instead of blood or plasma into the blood stream of a patient. The patient will gradually become weaker due to his blood being diluted and eventually will collapse which is what many economic and financial experts predict will happen to the economies and currencies of the world. The last 2 years has seen certain countries turning away from the US Dollar, leaving it out of their trade activities and more evidently by nations involved in the ‘Belt and Road’ initiative where not many of the projects being undertaken, which total already amounts to trillions, is in the US Dollar. Fiat currencies which have over decades proven to be flawed usually have an average lifespan of only 27 years. The US Dollar which has been a Fiat currency for 47 years, has already lost more than 96% of its value since 1913. People are wondering increasingly about the reliability and stability of Fiat currencies as opposed to gold or silver backed currencies of old and in more recent times, blockchain technology enabled cryptocurrencies like Bitcoin and others. If the bloated and unsupported US Dollar or its super ‘bubble’ stock market should fail at a time when America’s external debt (over trillion) and trade deficit (6 billion in 2017) are at their highest ever while at the same time with the nation being at odds with a host of other countries where many are dumping US Treasury Bonds the last 3 years, would be catastrophic to the world as the US Dollar is so intertwined with every nook & cranny, and facet of civilization on this planet. Banking Troubles Deutsche Bank, the largest derivative bank in the world (with a derivative book amounting to tenths of trillions in Euros), has been experiencing huge financial losses the last few years and is tied closely together with other banks in a so called ‘safer’ global banking system created after the Lehman event in 2008. Many experts are saying that if any major bank with so much derivative exposure should fail and being tied to other banks could be the catalyst for a banking crash that could spread worldwide. Therefore it can be concluded that it is not a matter of ‘if’ but rather ‘when’ there will be a cataclysmic crash? In fact with so many negative events happening in the world now it could be sooner than we think. Central banks including large banks are being increasingly viewed with suspicion by many quarters as there isn’t much transparency, allowing rampant manipulation, in the financial systems of the world which have contributed towards many major financial upheavals in history and this has contributed to the imminent rise in popularity of emerging blockchain technology, such as GALLACTIC Blockchain, an innovative multi-chain platform and its cryptocurrencies. Blockchain Features and Progress Blockchain technology brings about decentralization with its distributed ledger technology (DLT) that promotes transparency, trust, eliminates fraud and the need for intermediaries, and reduces significantly - transactional costs such as labour, and time - apart from bringing many other advantages and benefits, is now being researched and developed worldwide by thousands of fintechs and startups, the likes of Finterra that is developing “Social Solutions for Blockchain”, some of which are in joint ventures with or funded by large corporations and even by banks. New solutions, uses, and applications, smart contracts, technologies, platforms, tools, technical standards, ecosystems, and ICO launches are being created and executed increasingly to bring this foundational technology to greater adoption worldwide. Buddy, Menlo One, Ethereum, R3, IBM, Ripple, DACC, and many other startups including ‘Finterra’ and its Gallactic Blockchain Platform, are constantly bringing innovation to financial services, service industries, business applications, crypto-tokenization, and etc. Notably, GALLACTIC’s Open Source platform, Development Environment, Ecosystem and Interoperability Initiative are supported by its technology and Blockchain Architecture of the next generation. In fact, the Finterra’s solutions are already making great advances in Blockchain Technology with its many products and services combined with worldwide collaborations and partnerships. All of these will continue to push the world’s financial & economic systems and regulatory compliance to the limits for the betterment of mankind. Blockchain and Cryptocurrencies Ascension Cyprus’s banking crisis in 2013, Argentina’s financial crisis and Greece’s bankruptcy in 2015 saw Bitcoin investments reach major highs in these countries due to ‘flight to safety’ reactions. The same thing happened even more recently with the Venezuelan and North Korean economic crises, all of which point to the possible if not inevitable rise of cryptocurrencies in the wake of global financial chaos. So based on all the above, when the ‘dust has settled’ after the coming worldwide economic and financial crash has occurred, where all faith in the old system is lost, it is not inconceivable that there will be a global or maybe a revolutionary shift toward blockchain technology and its many social solution applications. There will also most certainly be ‘flight to safety’ of wealth from the current forms to the harder to manipulate, more secure, and less flawed cryptocurrencies (or at least one of them). Of course there will be many challenges and new infrastructure would have to be developed with great commitment and effort, to allow for a step-by-step global adoption of a new system based on blockchain technology. But it will most likely be a system where governments and banks (probably a new digital breed) won’t have the same power and control over the economic and financial systems of nations as compared to now. To know more about us, please visit on following social media channels:- Like it? Share it! More by this author |