The Connection Between Economic Crisis and Cryptocurrency

Out of all the mainstream hysteria about crypto that we have heard in 2017, one question of the utmost importance often goes unasked: why now, and what is happening to fiat currency?
Bitcoin has existed since 2009. There have been many ups and downs between then and now. But nothing like what 2017 brought. The total market cap of all coins came in at under ten billion USD for most of that time. Today it is over half a trillion, and will almost definitely exceed the trillion-dollar mark sometime in 2018.
So, what has caused this massive explosion? Has it just been a result of more media coverage leading to greater awareness? Or is the whole thing a fraud, as some banker types would like the world to believe?
The reasons are legion. One can’t necessarily pinpoint any exact causal factor. Reality is often more complex, involving many variables. That being said, sometimes a single variable stands out above the rest as having a massively more significant influence than everything else combined.
The inevitable and predictable devaluation of fiat currency
The rise of cryptocurrency is not surprising to those who understand both the basics of the technology and elementary economics. It’s simply the result of fiat currencies collapsing against the fixed supply of cryptographic coins. This is happening to the world as a whole. Yet it’s happening in some places faster than others. In a moment, we will zero in on Venezuela, a country where the reality of all this has become painfully apparent.

This post was published at GoldStockBull on December 23rd, 2017.