The use that has been given to Fíat money is unsustainable over time, says Woo.
In the event that Fíat money survives, it would be used to monitor the population.
Willy Woo, trader and financial market analyst, warns about a change of era in the global financial system as a consequence of the use that states have given to Fíat money.
For him, The current model is reaching its limit And for that reason he thinks: “Fíat money will explode. It only exists to cover the excessive expenditure of the government, but that train does not last forever. If the money fíat survives, then welcome to 1984”.
With this phraseWoo refers to “1984”, George Orwell’s novel, where a future marked by the absolute control of the State over the population is portrayed. It is for that reason that it raises a scenario in which Fíat money – if it will last in time – would work as a tool for surveillance and control, moving away from its function as a means of exchange and value protection.
The approach is clear: if the current system survives without changes, it could open the door to a centralized and authoritarian financial regime.
Woo’s criticism of Fíat money is similar to the vision of economist Henrik Zeberg, who warns that governments, especially the United States, have financed excessive expense by printing money. According to their thesis, the central banks chosen to “inflate” the markets with stimuli instead of allowing deep correction.
As cryptootics reported, Zeberg calls this financial phenomenon “the bubble of everything”, an artificial expansion of assets prices based only on liquidity, not foundations.
According to Woo, this dynamic is precisely the one that will end up causing the collapse of the Fíat money: it is used to sustain an increasingly unsustainable system, until the pressure explodes somewhere.
Woo also points out that Bitcoin (BTC) is the most sensitive macroeconomic asset: It responds strongly when central banks inject money into the market. “It is somewhat beautiful. Central banks print, and the more the BTC grows, the money fíat dies,” affirms. For him, the rise of BTC not only reflects an appreciation of value, but also the accelerated wear of the traditional monetary system.
Here are several issues to take into account. On the one hand, BTC represents the absolute shortage, because its supply is limited to 21 million units, whose broadcast is reduced every 4 years in an event called Halving. But, in addition, we must not lose sight of the fact that BTC has the advantage of being the first digital asset that manages to be established as a reference, since its appearance in 2009, it has managed to consolidate a user base and a reputation that gives it a dominant position.
Unlike money, BTC is resistant to the censorship of banks and governments, and Nor is it devalued by emission or government decisions.
In short, both Woo and Zeberg agree that the current monetary system is built on fragile bases and increasingly dependent on political decisions.
In response to this crisis that is coming, BTC is imposed as a decentralized, scarce and resistant alternative to manipulation of states. It is no longer just a technological innovation or an investment opportunity, but An answer to a model that is heading towards its exhaustion.
