Bitcoin vs The American Dollar

Cryptocurrency will not be accepted in the US, and CBDC will.

Is Bitcoin securing its future as the next dominant currency to replace the American dollar? As some of you might have heard, many were convinced to buy into this digital coin’s idealism because of that possibility, which caused a frenzy and became an overnight phenomenon, soaring in value.

How can Bitcoin be affected when the banks eventually convert to digital currency? Many, including myself, are invested in the future of this digital coin. Some of us cannot trust the future of the US dollar, and for now, Digi coins are a suitable commodity. Then again, how secure will Bitcoin be once the banks decide they should be the only money around town? This is the first time this has been seen since the 1700s, which is why the Coinage Act of 1792 was in effect. With two currencies fighting for survival. Who will win this time?

Consider this scenario: If I were to open up shop and start printing US currency, would it not mean I have created counterfeit? I would be competing with the US government mint, and it would mean that I have cheated the system, and guess who would go to jail?

Mathematical computation is remastering the US dollar, and privacy is over.

~ Julio Borroto

If Bitcoin were to replace the US dollar, that would be like another country entering the USA, and every citizen would be forced to use Bitcoin. Still, it is unlike any other digital currency because it is built by the world’s digital depositors, collectively causing it to increment to what we have today. Bitcoin is independent of any bank; worldwide, it is people-owned.

So, how can we call it American money when not just Americans have helped its Digi rise to fame? Also, imagine it can be snuffed up, its value reduced to nothing overnight. The SEC (Securities and Exchange Commission) continues to warn many of its financial hazards. So, imagine the value dropping to ten million again from forty million; that is nothing, you say? When all is lost, the novice will lose their mind.

Even before the thought of Bitcoin becoming America’s Digital currency. The Federal Government would have to purchase the digital coin at face value with possible interest. That would make those holding Bitcoin millionaires, billionaires, and trillionaires. Would the government want people with such wealth walking around? Imagine if a few trillionaires got together; they might form another government. So, the buyout would not happen, even with that hair-brain scenario.

What has the depository of digital currency become? This is where it gets complicated, needs to be clarified by the experts (pardon if I laugh here, “experts” Ha!), and will be debatable. The only answer floating from ear to ear is that many (we) are not sophisticated enough to understand; that is hogwash; they (experts) cannot explain it either. It is a computation that is as good as someone’s imagination.

Let us analyze the surface of Bitcoin (BTC), Dogecoin (DOGE), Ethereum (ETH), BNB (BNB), Tether (USDT), etc. What are they, and what do you see, money maybe? They are not factories; they do not manufacture anything we can acquire. Money-deposited is broken down and disappears almost like vapor to become computational equations, those binary numbers (think of the “Matrix”) incrementing and decrementing the Digi coin’s value, then registering to Blockchains.

Sometimes, cryptocurrency returns are far better than any bank. Crazy right? Its machinery causes resounding chaos, and if you put money (any amount) in places such as Coinbase, a “Digi bank,” your money can grow or lose it all. The volatility scares people; those people either hate losing, cannot afford to lose their money, or do not understand it. Most do not understand it but want to be part of it. If I can offer one suggestion, it would be that you never put your life savings in Digi and only put in what you can afford to lose, knowing it has high volatility.

The IRS (Internal Revenue Service) wants to know your profits, and they are working on your honesty and hope you will tell them your earnings. For now, and like most, chances are you are not telling them your profits, and it is the Digi currencies’ encryptions that have prevented them from snooping in unless they can get a subpoena, unlike a bank, which is an open window to your life’s savings and transactions, and the IRS loves that.

Now, think of a bank’s savings account. If you have made cash deposits (the principal) for months, you will receive interest (the yield) on the cash you saved. The yield can be as high as 1.5 to 8%; you must pay taxes on those profits. The downside is that if you profit from the principal, the cent amount of the yield is taxed.

For banks to see their future above and beyond cryptocurrencies, they must attract more customers; how do you say? Easy, lower interest rates, increase yields, offer more cash (Digital money) back incentives, more purchasing power, and are free from all banking fees. Then there is that big plus: banks are insured by FDIC (Federal Deposit Insurance Corporation) for every deposit of up to $250,000.00, and Digi currency, like crypto coins, is not insured, according to the Federal Trade Commission.

Suppose the two Digi currencies cannot coexist under one roof. Assuming that we can never legally accept Bitcoin as legal tender, it would have to be converted to the banks’ digital currency for you to make legal purchases with — which is how it is now, but with the physical dollar.

There is another scenario: If Bitcoin is allowed as a legal digital note, you would be open to other issues, including security ones; there would be none between you and the IRS; you would have to open your digital currency encryption to the US government.

Consider their reason: You might be a terrorist attempting to exchange Bitcoin for CBDC (Central Bank Digital Currency) currency from somewhere in the world or purchase something in the US. Who the Digi currency belongs to will be questioned. You are thinking, “Sure, I will do that; I have nothing to hide.” You are vested in Bitcoin to build and hide your wealth and use the assets at your will, or else, why else are you there with the rest of us?

If Digi currency were simple, just like when you use a credit card, it would create a digital footprint of your purchase, and taxes would be paid through the merchant. But there is another danger: Bitcoin will be cracked open to expose its encryptions. It would be if we expect to use the Digi currency legally. Recall the downfall of FTX: billions were lost, and no one knows where it has gone. Except for $7.3 Billion suddenly appearing, it will be used to pay back a few people.

Perhaps something else is put in place where you can have a safe area within the Blockchain register to move Digi currency and hold it; you are only allowing them to see a portion of what you are to use to make a purchase and then release it to become the banks’ digital dollar where you are then taxed. If not that idea, an immediate collection of taxes on a lump of funds will hurt your pocket.

For now, anyone holding Bitcoin can make private transactions peer-to-peer, almost to the point that it is not traceable — Hush Crypto; settle down. The government will lose out on collecting taxes, which will be a problem. It is something that they can not allow. If that were to happen to the verge of the government going belly up, you can expect it to be stopped or the taxes of the working class to be increased to make up the difference.

The question is the following: Can two digital currencies exist under one roof, with one having more purchasing power than the other, but then which one? The banking institutions are the most prominent government lobbyists in the US; according to American history, they also have control of the market (Wall St.).

So, how can we call it American money when not just Americans have flooded Digi coins’ rise to glory? Digi coins are unstable, and having such a currency in one country would be impossible since anyone in another part of the world can snuff its value overnight. Unless we have one dedicated CBDC, two Digi currencies will not work.

The following banks you should watch are working on a safe Digital currency for all: Bank of America, Citigroup, JPMorgan Chase, Morgan Stanley, and Wells Fargo. Tracking will be conveniently placed for every purchase; banks will know and happily control how much you buy. That is why interest rates are increasing now: to slow down purchasing power.

What do you think? Do you think Bitcoin will be the next currency in the US?

The article you have read is for educational information only and should not be considered Financial or Legal Advice. Please always Consult with a financial professional before making life-changing financial decisions.

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