Here is part 5 of my 5-part series. If you missed part 1, part 2, part 3, and part 4, you can check out below:
Part 1 - Category: it is about how to categorize cryptocurrency away from other digital currencies
Part 2 - Regulations: it is about why the government wants the regulation but they cannot do so
Part 3 - Environment: it is about how environmental impact on the cryptocurrencies and possible its valuation for the future
Part 4 - Technology: it is about how technology can change the way shitcoin performs and how crypto may evolve to become
Part 5 - Detokenization: it is about speculation that if Bitcoin actually extinct and what may happen
I may change parts depending on my research but here is for you guys to enjoy reading.
Wait, why the title is detokenization rather than tokenization?
It depends on the position of the cryptocurrency whether it will completely replace the fiat currency as the maximalist or it will die out by itself as minimalist.
I have discussed both maximalist and centralist, I will introduce minimalist here.
The idea is that global governments will implement CBDC regulations altogether and form coalitions. Then cryptocurrency may phase out in the process called detokenization.
What is detokenization?
It is a process where the utility of crypto will phase out but the blockchain as the infrastructure may stay.
Why will valuation die out?
Cryptocurrency is censorship resistance and forgery prevention. CBDC is censorship enforcement and forgery prevention. CBDC will dominate in the future that makes cryptocurrency out of its value.
Why is CBDC more likely to win?
Fiat currency is cost-effective in transactions and less energy-consuming than cryptocurrency as Bitcoin costs almost 10 times than credit card agencies did.
Cryptocurrency adoption is slow still and fewer people will use it as money rather than security to store the value.
CBDC will dominate
Not really either. It has a problem of data privacy concerns and political issues around globalization. However, it is also possible.
What if CBDC will implement in the future
Cryptocurrency may not be able to preserve its valuation. However l, the blockchain can function what it is supposed to.
Cryptocurrency is a blockchain’s fuel
The blockchain will provide services by utilizing crypto as fuel. Cryptocurrency will be similar to your credit card amount without real value but a transaction record in the blockchain system.
Blockchain runs on the decentralized Internet
There is a way to prevent CBDC from encroaching into cryptocurrency - decentralized internet. Cryptocurrency is running in a centralized internet system which makes cryptocurrency pseudonymous. On one hand, transactions broadcast on the blockchain, on the other hand, internet IP addresses linked into your public key address. Not to mention NYC requirements on cryptocurrency exchange platforms. Decentralized internet may resolve both concerns and hide your address to become truly anonymous.
It is possible that blockchain technology may run both cryptocurrency and the internet altogether to prevent intrusion of CBDC to collect personal data.
Shitcoin during detokenization
Interestingly, shitcoin may become more popular during the detokenization as it is speculated and people may take it to leverage the risk of CBDC.
Detokenization may or may not happen at all. It is pure speculation as I do not predict the future and share my opinions.
Well, I finished my 5 parts of writing and I may continue including more topics in the future. I hope you guys enjoy my articles in the series.
Photo by Hasan Almasi on Unsplash
Stablecoin is Not So Stable
CBDC: Stablecoin 2.0 or Stablecoin Killer
Chinese CBDC: the Ultimate Financial Weapon or Just another Copycat
DeFi Swap: Great Returns come with Great Cost
CBDC vs Cryptocurrency: the War of Privacy
Inflation vs. Bitcoin: How Speculation to Hedge Inflation has Failed in Short Term but may Create Opportunity in Long Term
Game of Three Kingdoms: CBDC vs. Cryptocurrency vs. TechCoin
Gold vs. Bitcoin: Digital Twin or Enemy
Volatility of Bitcoin: Threat or Opportunity
Lesson Learn from Robinhood IPO: Era of Crypto Exchange Comes to an End or a New Beginning?
Hypothetically, What if the Fed Fails to Control Inflation, Will Crypto Save Us?!
Stablecoin: We Ever Need Them More Than CBDCs
China FUD: Are We Done Yet?
SEC vs. Ripple: the Endless Game of War
SEC vs. Defi: What is the goal of the Defi?
City Coins: Are they the Era of New Coins?
Ethereum London Hardfork: How Hard does It Actually Fork?
Did the U.S. government just thumbs up on Bitcoin and down on Ethereum after the London Hardfork?
The End of Era for Crypto Exchange Platform?!
NFT: Digital Solution or Delusion?
NFT: The Future of Gamers' Assets
Is Bitcoin Untraceable Anymore?! It Depends!
Why Crypto Got So Political Suddenly: The Beginning Tale of Government Crypto Surveillance Program
Where are We Position Crypto at : the Problem with Money and Wealth
Crypto Hacking: How Did it Really Happen?
Bitcoin Mining Recover?! The Chinese vs. The U.S Strategy of Blockchain
The Legendary of Shitcoin: Meme to the 🌓 or Unique of 💎 or Simply just 💩
Defi: A Rainbow 5-Layers Cake
Crypto Economy: the Untold Speculative Financial System We will Live?
Red Alert: Lesson Learns from the Nearly Cashless Nation
Jack Dorsey’s Ambitious: Twitter wants to Become a Place of Freedom of Speech
What Categories Does Bitcoin Belong to or Does it Really Matter?
Quantum Financial System: The System Lost Itself in Quantum World
Doge 2.0: Who Let The Dog Out?!
Legendary Hacker: the White Hat into the Rescue
Crypto Hot Hub: The Best Place to become Crypto Incubator
EIP-1559: The Future of Ethereum Economy
Break the Fourth Wall?!
Robot Sucks: How Lousy Jobs AMMs Did to Ruin the DeFi
The Future of Cardano: as Clear or as Uncleared?
We Are Short for the Dollars: The Dollar's Liquidity Issue
Currency Comparison: Bitcoin vs Dollar
Patent the Blockchain: the Nonsense Action Shows a Worry from Big Tech Companies
Forget about Trade War: New Era of the International Trade
Ethereum Got Update Bug: A Blockchain Synchronization Problem
CBDC's Cross Border Payments System: Worse than Crypto
Bitcoin's Energy Concerns, Scalability and the End of Bitcoin Prediction
Unknown Author’s Hypothesis: Creator of PoW and PoS Hybrid Blockchain
Currency Debasement: Cryptocurrency Inflation Hedge Hypothesis Still Hold
Shitcoin Economy: Part 1 - Category
NFT Bubble: Does it Really Matter ?!
Shitcoin Economy: Part 2 - Regulations
Fiat vs. Crypto: Religion vs. Science or Vice Versa
Dogecoin 2.0: Doge Breeder Era
Shitcoin Economy: Part 4 - Technology
Buterin's Regret: Ethereum 8 Co-Founder Things
Tokenism: An Old Idea Get A New Invention
Disclosure: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose cryptocurrencies are mentioned in this article. This information is only for educational