New York University economist Nouriel Rubini recently commented on the world's largest digital currency, bitcoin, calling it a "very bad currency."
"Corrupt currency is one of the worst temporary trends in history," said Warren Buffett, one of the richest men in the world.
Bank of England Governor Andrew Bailey warned a few weeks ago "if you're willing to lose all your money, buy it (cryptocurrency)."
Nobel laureates in economics Joseph Stiglitz, Paul Krugman and Robert Schiller are also among the critics of cryptocurrencies, but now they do not predict that those currencies will suddenly disappear one day.
The crypto market has grown to almost 2 trillion pounds over the past year, and the crypto market is expanding, despite all restrictions and vigilance.
No country, company or central bank controls the corrupt currency. The idea of decentralization, buying and selling in cryptocurrencies does not require the adoption of any broker and is not confirmed by any institution.
Information security for money transfer is secretly monitored with the help of a large computer network, the nodes of which are scattered all over the world.
Millions of dollars are circulating in this system and it is almost impossible for governments, central banks and regulators to monitor this process.
"We are at a crossroads."
Unlike the critics, there are a large number of people who want to promote corrupt currency and who are convinced that their movement will not end.
They see cryptocurrency not only as an opportunity for long-term profitable investments, but also as a major change for the international financial system.
He believes that the market will shape the world of politics, economics and finance.
"Now we are at a crossroads," Shawyer Pastor, commercial director of the But to Me commercial platform, told BBC Mando.
"Corrupt currencies are going to change the world in the same way that the Internet did," he said. "We are entering a new phase in the evolutionary history of wealth."
"The incomplete banknotes that central banks are printing will be worthless in a few years," he said. The advent of new technology will be the death of the old ways.
One of the biggest likes of bitcoin and cryptocurrencies is Jack Dorsey, CEO of Twitter and Square.
"Bitcoin is about to change everything and it will be to our advantage," he wrote in a tweet. In another tweet, he said, "Why can't an organization or individual stop or change this?"۔ '
Dorsey is so convinced of the corrupt currency that he predicted in 2018 that his bitcoin would be the only currency in the world in the next 10 years.
And when the Financial Crime Control Network (FINC) proposed a law in January this year that would require companies to disclose the names and addresses of people who laundered more than 3,000 in cryptocurrencies. Dorsey objected to the proposal in a letter.
Shengping is the CEO of Cinziao, the world's largest cryptocurrency trading platform by volume. He warned a few days ago that no institution is capable of destroying bitcoin and its underlying technology, the 'blockchain'.
"I don't think anyone can stop it now," he said at the 2021 Coin Desktop Virtual Consensus Conference. This technology, this concept, is engraved in the minds of 50 million people.
Xiao added that governments and regulators should embrace blockchain technology and corrupt currencies, and fighting them would amount to rejecting Amazon's business model in the early 1990s.
Corrupt currencies are not intended to eliminate traditional or government-sponsored currencies, but rather in favor of "financial freedom."
"They can be a threat to the financial sovereignty of any country."
"The cryptocurrency market is not very rich and is still a threat to the global financial system," Josh Lipsky, director of the Geoeconomic Center of the Atlantic Council, an international organization of US analysts, told the BBC.
However, he warned that the cryptocurrency is even more important due to its rapid growth in just a few months.
"In a year, we could see further expansion in the cryptocurrency market," he said. That's why regulators around the world wonder what kinds of new rules might be necessary.
Christine Lagarde, former director and senior adviser to the International Monetary Fund (IMF), says the biggest threat to cryptocurrencies is that they could "threaten the financial independence of any country."
If you do not know as a central bank how much money has been spent in your country and where it has been transferred, it will affect your monetary policy and the measurement of inflation, interest rates and many other implications. Even the way parliamentarians and governments shape their fiscal policy will suffer.
She said that all countries should be concerned about the threat of financial sovereignty. They cannot control the amount of money hidden and spent.
By making a case for the future, Lipsky believes that governments will create their own digital currencies and compete with corrupt currencies on the market.
In this context, the researchers believe, both to protect people from counterfeiting and to ensure that the digital currency market must be regulated so that cryptocurrencies can be used for legal purposes.
Resistance from governments and central banks
The issue is being discussed in the United States.
In mid-April, Jerome Powell, chairman of the US Federal Reserve, said "it's just speculation."
"The efficiency of our economy depends on people trusting not just dollars, but also payment networks, banks, and other payment service providers," Powell said.
Federal Reserve Chairman Jerome Powell said he was studying the possibility of issuing digital dollars.
Earlier, Treasury Secretary Janet Yellen called bitcoin a "speculative asset" and a "very inappropriate source of transactions."
And a few days ago, Gary Gansler, chairman of the SEC, the top US financial regulator, warned lawmakers that digital currencies are important issues for policy and investor protection. The declaration would amount to tighter surveillance under the Biden administration.
"I am willing to work with other regulators and Congress to fill the gap left by investor protection in these corrupt currency markets," Gansler said.
All over the world, central banks have started talking about it.
The Swiss-based Bank for International Settlements (BIS), known as the "Central Bank", has made it clear that this is a war against corrupt currencies.
"Investors should be aware that bitcoin can completely lose its value," Augustine Carstens, BIS CEO, said in late January.
He said that bitcoin is fundamentally dangerous and that only central banks should be able to issue digital currency.
Change of position on Wall Street
While some still believe that cryptocurrencies have only been issued to criminals selling weapons and drugs illegally, the sharp increase in their use over the past year is an investment tool. It was widely recognized as
With each passing day, large companies such as Goldman Sachs, JPMorgan or Morgan Stanley have opened their doors to cryptocurrencies.
In fact, Morgan Stanley was the first major US bank to provide its clients with access to bitcoin funds in mid-March.
In late May, Matthew McDermott, head of digital assets at Goldman Sachs, announced that "bitcoin should now be considered an investment asset."
"We rarely see the beginning of a new class from the East," he said.
Among those who are not overly passionate about cryptocurrencies is Raymond Deleu, founder of Bridgewater Associates, the world's largest venture capital fund.
He told a business conference in late May that he had "some" bitcoins, but also warned that governments had "the ability" to control corrupt currencies.
"They know where they are and they know what's going on," he said.
Other investors, like Kathy Wood, founder of Arc Investments, argue that the authorities cannot "stop" them.
One of the critics of cryptocurrencies is Larry Funk, CEO of Black Arc, the world's largest asset management company.
He says his company is following market developments, but it is too early to tell if this is just speculation.
What is no secret is that most companies that have invested in cryptocurrencies have created teams specifically to analyze the behavior of this market, and these companies have a global presence. The epidemic has grown extraordinarily.
Extreme fluctuations
The fact is that Bitcoin, on the one hand, is very unusual, and on the other hand, its fluctuations are quite sudden.
In the last month alone, it has lost half its value due to two dramatic drops.
First, in mid-May, Tesla CEO Elon Musk sent a message announcing that he would not accept bitcoin as a way to pay for his cars for fear of environmental pollution.
The argument behind his claim is that the new generation of bitcoins runs on powerful computers and requires a lot of power.
And the problem is that most of this energy comes from fossil fuels that are harmful to the environment.
The second blow came a few days later when the Chinese government imposed new regulations on its transactions.
It dropped to 30-30,000, but rose again in the next few days.
"A new economic era is coming"
If the speculations and fluctuations of corrupt currencies are forgotten for a while, the question arises of how profound the change resulting from the eventual adoption of those currencies can be.
Among the most difficult defenders of Bitcoin, the so-called "corrupt evangelists" are people of various political ideologies, from the most conservative to the most rebellious and anti-establishment.
Steve Forbes, president and editor-in-chief of Forbes Media and a two-time Republican primary candidate, is excited about this.
"He is telling a great story that will give insight into the world of politics, economics and finance," he said in a podcast. That is, governments and central banks are trying to overthrow digital currencies with taxes and regulations.
"Politicians and the central bank will work hard to protect their economic monopolies," he said. Eventually, those who impose a financial monopoly will be banished.
"Whether it's for our good or our bad, a new economic era is approaching."
That new era, if it ever begins, will change modern financial systems.
The model developed by Bretton Woods follows World War II, the system in which the currency is valued in gold reserves, and the current system, built in 1971, where exchange rates in the foreign exchange market fluctuate.
But it is in high demand to ensure that corrupt currencies change the financial system that has ruled the world for the last half century.
While changes may occur, experts agree that the development of the current economic system is more likely to occur in response to new balances in world power (such as the vertical rise of the Chinese economy) and technological innovation. Includes blockchain technology.
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