In a recent statement, ECB President Christine Lagarde commented on Bitcoin, saying it has no value. According to him, the leading cryptocurrency will have “zero” value in the future. The interesting thing is that Lagarde isn’t the only one who thinks this for Bitcoin and altcoin assets. Wallet Buffet, his business partner Charlie Munger, and former Fed Chairman Ben Bernanke share similar views.
These fiat economists and billionaires have been making these claims since Bitcoin was $100. But they are wrong about Bitcoin’s depreciation. However, Lagarde’s comments contradict his previous comments on the need to properly regulate the crypto market. The ECB chief says the Digital Euro, which will be a CBDC, will be a safer instrument of value. Undoubtedly, CBDCs will cause serious problems in the future, but a class of altcoins can be the remedy for investors.
CBDCs are coming
Once CBDC currencies are released, the supply control of these assets will be with central banks. Therefore, these CBDCs are unlikely to reduce the inflation rate. Nor will they be a better store of value than cryptocurrencies, especially Bitcoin. With inflation rising in Europe, Digital Euro cannot be expected to do better than Bitcoin. Still, it will certainly be safer than Bitcoin in terms of price volatility, as they are tied to fiat currencies.
The reality is that Lagarde and other central authorities will continue to control CBDCs. It is worth noting that CBDCs are very good for central bankers and politicians. But they are not suitable for ordinary people. Unfortunately, a CBDC will mark the end of privacy and freedom. The central bank behind the CBDC system will freeze your money at will, at the behest of politicians. Also, this will track your money and they will tax it. Still, a class of altcoins is winking at us to circumvent this future problem.
Privacy-themed altcoin projects could skyrocket in the future
One possible solution to the lack of privacy in CBDCs are privacy coins like Monero, Dash, and Zcash. Privacy-themed altcoin assets use a variety of technologies to anonymize transactions. This technology; includes confidential addresses, zero-knowledge proofs, and ring signatures. Monero is one of the oldest privacy coins. This uses ring signatures to protect user privacy. Accordingly, it would be impossible for anyone to match this transaction with your account or any other account between addresses.
It is worth noting that Monero (XMR) is hardly affected when the price of BTC drops. XMR has been in a Cup&Handle model for literally 5 years. Monero’s network usage is still on the rise, and once CBDCs become mainstream, everyone will rush to it to achieve transaction privacy. However, there are many other privacy altcoin projects like zCash. These too have the potential to skyrocket due to the privacy deficit of CBDCs. Below you can find the most popular of these altcoins.
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