- Varoufakis believes that it would not be fit to say that we found the perfect alternative to Fiat currency in Bitcoin.
- It will worsen the global economy that will have severe repercussions on the working class.
- The digital currency will fail to democratize capitalism and will be detrimental to society at large.
Ben Arc is one of the Bitcoin pioneers who has worked on projects relating to Bitcoin ATM and Efficient Point of Sales (PoS) technology. Earlier this month, he penned an open letter to Greek economist Yanis Varoufakis stating the positives about an economy dominated by cryptocurrency, especially Bitcoin. In his reply, Varoufakis begs to differ from Arc and explains why he has reservations about the ideology of digital currency and its repercussions on the global economy.
The Right-Wing Believers Will Benefit at Large From a Crisis
Varoufakis explains that he was intrigued by the prospect of having a Blockchain algorithm and its scope in financial technology. However, according to him, it would not be fit to say that we found the perfect alternative to Fiat currency in Bitcoin. The elimination of a central issuing authority means that the supply of Bitcoin will not be encouraged by the ultra-ring wing members. It will turn capitalism uglier and nastier for the citizens of the world.
In simpler terms, the issuing of digital currency will not be promoted to prevent a crisis similar to the one that rocked the global economy in 2008 and 1929, respectively. The rich will become richer, leaving the poor in a dilapidated state. It will worsen the global economy that will have severe repercussions on the working class.
Socialism Does Not Stand a Chance for Revival Under a Digital Economy
The idea of removing central banks might be beneficial to several businesses, but private banks would not like to remain idle. The derivative instruments on digital currencies would soon create tranches of bonds and underlying investments that will eventually crash just like in 2008. Hence, the above proposition will kick in and render the working class jobless.
The digital currency will fail to democratize capitalism and will be detrimental to society at large. It will transcend the economy to a postmodern era of the 19th century when the gold standard was still prevalent in the United States. The private bankers will have a major role to play in a world devoid of fiat currency and its harmful effects.