Only time will tell. Companies like Zap, with its Lightning Strike app, and Square, with its Cash App, are revolutionizing payments. They integrate both bitcoin and fiat payment systems into users accounts, allowing both bitcoin and fiat to be sent interchangeably all over the world. Perhaps the decision for a 10 percent discount in bitcoin won’t even force the buyer to own bitcoin, but will allow for a seamless transition in payments between bitcoin and fiat currencies.
Will Bitcoin Alter Power Dynamics In Global Manufacturing?
Presently, bitcoin is attempting to prove its worth as a store of value. Recently, the currency surpassed $1 trillion in market capitalization , and institutions are starting to pile in. If bitcoin is established as a store of value, many believe that the currency will then begin to evolve as a more widely-used medium of exchange. It would be interesting to see how the implications of a hard money standard like bitcoin could affect global trade and manufacturing.
If we got to the point as a society where bitcoin became the universally-accepted payment network, nations with weaker currencies like China would lose their comparative advantage. With this would come the cat-and-mouse game between regulators and manufacturing companies. Many countries whose economies rely on exports may view bitcoin as a threat to their comparative advantages. On the other side, you will have manufacturers that want to receive bitcoin for their goods. Could there be a migration from traditional export-driven nations to ones that are welcoming to bitcoin?
America and much of Europe was on the gold standard during the late 19th century and into the 20th century. This time period was known as the “Gilded Age” in America, where the United States became the global leader in manufacturing. Many credit the deflationary effects of a hard money standard for technological discoveries and industrial innovations during this time period.
Perhaps another hard money standard in the form of bitcoin can promote further innovation within manufacturing. If the 21st century develops along the same lines as the 19th century, the countries that are on a hard money standard will benefit the most in manufacturing and global trade.
This is a guest post by Jackson Forelli. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
