Let's talk about the forex and crypto industry today. I have covered a lot of market manipulation specific content in the past. So let's take a look at how the Forex gets manipulated and how crypto currency can be another option against it. And how long it can be sustainable until the powers that be finds it out and tries to cover the leaky bucket.
Forex is basically a market where the currency from every nation goes in and against the top currencies which forms the market pairs. Say USD, JPY, EUR, GBP, AUD, CAD etc. A lot of currency pairs are being in circulation in order for the trade between the nations and to manage market value and GDP based on it.
Crypto has a sneaky way to bypass the currency reserves and make the variation in the growth of the nations. Like more crypto being traded, the less value other pairs get and that would make things lot difficult for maintaining the dominance for dollar or GBP.
Imperialism vs Use Case
GBP has literally no use case for Asia, Africa and South America. Yet it is one of those currencies which are trying to manipulate the market without giving any value back to the other nations. It continues to stay top based on it's market manipulation. When people trade crypto for USD, they tend to weaken the other currencies which don't have much value in the market. Instead the currency with more exposure and circulation would rise.
Say a nation like Philipines which chooses to use the Bitcoin Cash for it's expenses instead of forex pair would be helping their own economy if those crypto coins appreciates in value. Which would help their country and also some of the Imperialist currencies which are holding value for no reason would start to get even more weaker.
GDP Improvement
Imagine you have like 4 BTC for which you are going to trade it for USD. That would come into the bank account of your nation. You would be able to hold the local FIAT for that trade. This goes to show your life changing and you making more local expenses. Which would kick in the economy and also this would help some people retain job, new business to thrive and so on.
GDP keeps on improving when more and more people trade the crypto for FIAT. It would continue to have more local economies improving on small basis. Though big change overnight may not be possible. But as long as the user spends his local FIAT and keeps the cycle moving, that would help the nation one day at a time basis.
Getting the Debt Out
Have you heard of the nations that are going bankrupt since the Pandemic? Sri lanka and few other african nations have tasted the pandemics side effects. And they are in the process to get the debts sorted. In case of those people they can get the debt out of those past by making sure the crypto is being spent for the USD and local FIAT in their soil.
Once a lot of nations adopt this method they can improve the gap of the wealth and also get their debt settled. Some of the time such type of the approach helps a lot to those people who have planned this out to specifically help the nation. I feel Venezuela did this with STEEM and BCH and in fact they have superb results with the DASH coin too.
Forex pairs of the Imperialist nations have manipulated the world for long. And crypto's entry has kind of destabilize it for some time. Though once the regulation kicks in, things would go back in the favor of the big elite nations once again. So it'd be reasonable to say that crypto is a good option especially when your country and you are struggling financially.
Have you contributed in your nations GDP by selling Crypto? or by using Crypto internationally?
Do you think crypto would help more than Forex does?
