Bitcoin + Internet of values + DeFi = new world currency ?
The main task of the blockchain from my point of view is to change Internet data to Internet values. Perhaps this was originally not the case, but then Buterin launched the Ethereum ICO, positioning it as Bitcoin 2.0.
You can create a song or clip to sell it once and then someone puts it in the public domain and all the value is lost. Blockchain and Web 3.0 came to change this situation — the restructuring won’t happen immediately, but gradually many processes will be monetized and it would catalyse to accelerate the transformation.
Bitcoin as a reliable payment system is great, like digital gold, too, but the whole world economy correlates with the gold chart and even if Bitcoin replaces the US dollar, it cannot replace gold. In this case, it’ll be just another tool for the next 100 years, perhaps this is how the world’s cyclical structure works.
Now central banks are printing fiat money and people have no other alternative. But today, people are starting to generate their values on the Internet — digital values. All teenagers are already focused on the digital world. Today there are adults who pay teenagers to go through a difficult level for them in a popular game or get some kind of artifact. Cryptocurrencies will fundamentally simplify and take digital values to a new level. Thus, the Internet of values will be created, and with it the market of digital values. Its capitalization will increase every year. Its capitalization will increase every year. All this will belong to non-states, and when the Internet of values capitalization is close, for example, to the US dollar capitalization, the market will be able to generate any token equivalent to a fiat unit such as USDT through DeFi protocols. By that time, there will no longer be any sense in all these fiat currencies, since it’ll be most profitable to issue tokenized gold.
If the DiFi protocol is implemented with real decentralization on a decentralized platform (for example, Ethereum), then tokenized gold will have the same decentralization. If necessary, even possess anonymous transactions. That is, the protocol will be able to create, to some extent, digital gold (a digital code with a collateral and an estimated value like gold) without reference to banks and real physical assets.
That is why the Internet of values in composition with Bitcoin is that world currency which will then begin supplanting fiat currencies. But it won’t change anything, just money will become private and, as usual, the rich will become richer, and here we’ll try to take a little bite from the new pie.
PS: But the world currency of the Phoenix (The Economist 1988) will not be Bitcoin. It is the digital yuan, perhaps it will be backed up with gold. I have studied this issue for a long time, and came to the conclusion that the yuan has become one of the world’s currencies since 2018. China has launched the BSN (Blockchain-based Services Network), which is also part of the Internet of values. I think the picture will clear up after the US presidential election, but obviously everything will be only in the beginning of 2022, after the Olympic Games in Beijing.