Anyone from the west who believes the world’s financial center of power isn’t rapidly moving to Asia is either excessively prideful, excessively stupid, or both. China’s exploding middle class, strong manufacturing base, unstoppable work-ethic, and relatively low debt make it the perfect breeding ground for economic domination. Add Japan, Taiwan, Singapore, and South Korea into the mix, and it’s not hard to see that financial power has been shifting slowly for decades. However, the U.S. and Europe Now Have an Opportunity to Dominate Bitcoin.
I believe China has made a misstep that the west could capitalize on. If the United States (for instance) abandoned its overreaching objective to regulate and control ever minute aspect of the entire universe, it might stand a chance of regaining its momentum as the world’s dominant economic power. But bear in mind, I’m not talking about the United States government, per se; I’m talking about the U.S. as an economic region.
The dollar’s status as the global reserve currency is lost. The “ifs” succumbed to the “whens” years ago. The U.S. is a debtor nation with a shrinking manufacturing base. It has become a nation of services. It has sustained its status only because of the dollar’s dominance in the world, and once that changes, the U.S. will slip rapidly into decline.
Decentralized digital currencies are not going to disappear. The move by China preventing banks from engaging in bitcoin trade could impede crypto-currency growth somewhat — especially if other countries follow suit. But, similar to futile attempts over the last decade to eliminate peer-to-peer file sharing, any effort to stop crypto-currencies will prove fruitless in the end.
Now is the time when shrewd leaders could create historic change. Ironically, it won’t come from what governments do, so much as it will come from what they don’t do. But make no mistake about it: any geographical region fostering an environment friendly to digital currencies is certainly going to play a major role the management of global capital in years to come. And the ancillary economic growth will be unprecedented.