Financial System Can Not See Cryptos Deflationary Impact
William Peets, who is an investment strategist, indicated on an extensively underestimating of the deflationary influence of Bitcoin and blockchain.
In conversation with Real Vision Finance from October 30, he said that blockchain is a generational shift in technology with substantial consequences for the nowadays financial system. It’s recognizing is going very slow.
Elimination macro disequilibrium
As Peets said, finance is ready for destruction by crypto and blockchain. The application of the technology will eat the monopoly power of traditional financial services incumbents:
He emphasized one more time that a “huge part of the market” does not see the potential influence of such further change, as well as how quickly this alteration could occur.
After 2008 he declared that the possibly deflationary effect of blockchain could be decisive to softening some of the worst dysfunctions of a debt-driven system, stating that:
Signal to be awaken
According to previously reported information, analysts regard that even ahead of receiving widespread global traction, the very existence of private decentralized cryptocurrencies is already having a beneficial impact on the global financial sector.
Private digital currencies serve as competition for local investment and in this way, constrain monetary policy, thereby generating lower inflation.
“The world was “sleepwalking” into a financial crisis even worse than that of 2008.” – such words heard attendants from former Bank of England governor Mervyn King at the International Monetary Fund’s general meeting earlier this month.