When central banks tighten money supply (as they have started to do) it will in time lead to an economic crash bigger than any that we have seen before. I don't know when this will happen but it will happen. When it happens they may decide to tell us that the current fiat system is broken and that we need a new system which is where cryptos come in.
I can see them doing one of two things with crypto:
- Letting it keep growing - they could be pumping it themselves right now for all we know.
- Let cryptos crash with the stock market.
If they let it grow they can point to the benefits of crypto as they sell us on why we need to drop fiat in favour of crypto. If they let cryptos crash it will give them a 'reason' to regulate and take over the crypto space with 'govt approved coins' while banning the rest. They will tell us that blockchains and cryptos are good but only the ones that we approve as the other have flaws.
Irrespective, they eventually want to move all of us over to a digital currency and that is exactly what they will do. Knowing when they will do it and timing our entry and exits are the big questions.
If they are to move the world to digital currencies they are going to have to make it very painful and frightening for people so as to make them believe that it is the best option for moving forward. When this happens it is going to be very messy.
I expect that cryptos have at least one more big run in them before they begin to turn the music off. Interesting times ahead - good article, thank you!
As you say, they want to move us to digital currency, but not to the decentralised currency, where anonymity and full speed of creationism and small business leadership is taking place. And there is a lot of cryptos in banker's accounts and they are even included in country's indexes... Thank you for your very good comment