Picture a world racked by economic issues like coronavirus, where people begin ditching government (fiat) currencies for Bitcoin. Small changes are are underway:
The chief economist did not mention that a growing number of jurisdictions are already embracing bitcoin for tax payments. For example, the canton of Zug in Switzerland announced that it will start accepting bitcoin for tax payments this year. Several other local governments in Switzerland have made a similar announcement, such as Zermatt.
Recently, the mayor of Miami said that he is working on allowing payments for city services in bitcoin. Furthermore, a growing number of stores are accepting bitcoin payments. Payments giant Paypal, for example, is planning to allow people to use cryptocurrency to pay for goods and services at 2.8 million merchants in its network this year.Kevin Helms, “Economist Discusses What Would Happen if the Masses Ditch Fiat Currencies for Bitcoin” at Bitcoin.com
A number of unresolved problems remain, as Jonathan Bartlett points out. He acknowledges, however, that “the extended lockdowns have probably sparked increased usage of Bitcoin for business owners opposed to the lockdown, which may have contributed to its recent rise. Additionally, the waves of anti-government sentiment have probably caused additional increases in Bitcoin values, as well as an increasing distrust of the way that the US government is handling the economy.”
One way of looking at the matter is that cryptocurrencies may be a step on the road to a fair global currency system. Governments come and go and they have varying levels of reliability. What individuals are willing to bet on the trustworthiness of their currencies could turn out to be a valuable marker in the long run.