Will Bitcoins Ever Rule the World?

Is there really any doubt that the most powerful economy on earth is the Fiat System?

The Dollar is backed by the US Government and it acts as the worlds reserve currency.

The Chinese leadership is publicly stating that they will be moving from the US dollar to the new Asian Currency - the Yuan. This means that you will soon be exchanging one US dollar for another in order to purchase items in China.

However, there are a few problems with this story:

First, the Chinese communist government does not actually give away its money. They control the large majority of their money through the central bank and do not issue paper notes. There have been rumblings of this for a long time, but nothing has happened.

Secondly, the Chinese government is not about to start giving away their hard earned money. They have issued official warnings against the circulation of virtual money outside of the system. This is known as the "One-Child Prevention Policy" and you can be sure that this wont affect the Chinese economy in the slightest. If anything, the "One Child Policy" will only make their markets less volatile because their central bank will be better able to control flows of foreign currency. At the current time, the Peoples Bank of China is busy trying to keep the interest rates of its currency at reasonable levels.

On the other hand, bitcoins are completely digital and have no "real world" equivalent. There is no such thing as a "Bitcoins in a Bottle" that you can carry around and claim a wealth of wealth like a US dollar. Even if there were, nobody would spend it in your name! You cant even buy a "Bitcoins in a Bottle" online from a retail establishment, since that would be considered an illegal activity. Now, the "pile-on" problem with the" cryptocoin" doesnt even apply to the US dollar since they are truly convertible at the point of sale.

Nevertheless, the "Cryptobit" has definitely gotten a lot of attention recently. It is a trendy item to purchase for yourself or as a gift, since you dont need a bank account to get started. In addition, anyone can create their own private pool of digital money and use it like any regular "bit coin." So, will bitcoins ever rule the world?

Only time will tell, but they already have a stranglehold on the financial world. It is almost impossible to transact any financial business using anything but a digital transaction. Will bitcoins ever rule the world? Only time will tell.