Digital Currencies Outperform Failing FIATs Studies Reveal
As traditional fiat and sovereign currencies experience a crash along with global economic downward trends, popular digital currencies such as Bitcoin continue to perform well and withstanding institutional pressures.
Crashing Economies Look Towards a Crypto Future
For nations such as Venezuela or Turkey who have experienced financial instability for several months, digital currencies have offered a unique solution for stability when local currencies began to fail. With access to Bitcoin as an alternative source of currency valued worldwide, locals are quickly becoming crypto supporters believing in the true value and potential Bitcoin and the like possess.
A report conducted by Pension Partners published on Coingape stated that according to analytical reviews of digital currencies in comparison to specific fiat currencies experiencing a crash against the US dollar, Bitcoin offered a significantly more stable option than these local sovereign currencies. For example, when compared the Sudanese Pound had fallen more than 60%, whereas Argentina’s Peso dipped by %50. Venezuela’s Bolivar crashed more than 99%, making access to digital currency an undeniable support. Although these nations do suffer from failing economies, they provide an excellent example of how impactful digital currencies such as Bitcoin can truly be.
Study Confirms Crypto Potential
Conclusions drawn from these comparisons show that despite dramatic declines in mature currencies such as Bitcoin, those economic dips are far less than those experienced by fiat currencies worldwide of which are fully backed by financial institutes and government regulation. With this in mind, many have begun to compare the benefits of a decentralized well performing currency circulated globally with that of their regulated and controlled failing economies and how that might affect a struggling nation’s prospects.
Coinpage also released a Pension Partners’ analysis of crypto and fiat currencies worldwide. In comparison, the worst performing digital currencies include Qtum, Bitcoin Gold, and NEM that have all dipped within a range of 89-91%. Among the better performing cryptos include EOS, VeChain and Bitcoin itself, who have experienced significant value dips however in comparison to many sovereign currencies such as the Jamaican dollar or Indian Rupee, they remain the better option. The study concluded that evidence to support the future of cryptocurrency has never been so strong.