With the increased geopolitical uncertainties in the world economy, it is becoming increasingly clear that a fundamental change is imminent. The two largest economies are engaged in a trade war and the U.S is just falling short of declaring China a currency manipulator. In the developing world, fiat currencies are being affected by the rising interest rates in the U.S, and some of them are already facing increased inflation rates. All these factors could confluence into a situation where a decentralized and trustless system emerges as a replacement to the financial system as we know it.
The two cryptos that most people believe could take over in such a scenario are bitcoin (BTC) and XRP (XRP). However, both of them have certain fundamental weaknesses that would curtail their assertion to the top as world currencies.
Bitcoins core weakness is that its mining power is controlled by China. This makes it highly unlikely for the U.S or any of the other western nations to adopt it. That’s out of the fear that the Chinese government can indirectly manipulate it, and hurt the U.S economy. If bitcoin stands no chance of becoming the main currency in the west, then it can’t become a world currency. That’s because the west, especially the U.S, is a central part of the global economy, and if it’s not in, then the whole idea is dead on arrival.
The other crypto that is widely believed to have the potential to become a global currency is XRP (XRP). Like bitcoin (BTC), XRP has one flaw that would curtail it from emerging as a global currency, and that’s its strong ties to a U.S company. Ripple, an American tech company owns a significant amount of XRP (XRP), which makes it quite an impediment for most countries to adopt it. Countries like China and Russia would most likely not adopt it, for geopolitical reasons. And since these countries are important players in the world economy too, not adopting it would eliminate the whole idea of XRP emerging as a global currency.
One crypto that is underestimated but one that could gain global acceptance as a currency is Digibyte (DGB). Digibyte (DGB) is unique in the sense that, it has no affiliations to any country. It’s a global community and has never shown any leanings towards any nation or any group of nations in the global geopolitical hegemony. This makes it acceptable across the geopolitical spectrum. It is also fully decentralized, which means that no entity can claim control over Digibyte (DGB).
Digibyte also has the technical capabilities to work as a global currency and do so with ease. For instance, it is one of the fastest cryptocurrencies out there, and its speeds will continue to increase over time, thanks to Digispeed. This means that Digibyte has the capacity to handle high transaction volumes without negatively affecting the flow of value in the global economy. It is also extremely secure, a core attribute for any crypto that wants to be taken seriously as a tool for transferring value in the global economy. On this basis, Digibyte (DGB) could emerge as a surprise winner in a changing global economy. This could push it to valuations that investors can’t even imagine at the moment.