One of the first countries to industrialize in the 1860s, the British Industrial Revolution led to one of the greatest practical and radical changes in human history. But even stranger than the cultural shift itself is the fact that British industrialization has surpassed potential competition for decades. It was not until the beginning of the twentieth century that historians understood the question of causation. Max Weber’s direct answer: “The Protestant work ethic” indicated puritanical seriousness, diligence, financial prudence and hard work. Others point to the establishment of the Bank of England in 1694 as the basis for financial stability.

On the other hand, continental Europe shifted from one sovereign debt crisis to another and threw itself recklessly into the Napoleonic Wars. Not surprisingly, industrialization in mainland Europe did not take place until after 1815, when a new country, Belgium, took over.

250 years later, with the launch of Bitcoin (BTC), another revolution began, but this revolution is more commercial than industrial. While the full effect remains to be seen, the parallels between these two historical events are truly striking.

Bitcoin may not be in line with industrial transparency, but basic pragmatism touches the foundations of an exchange-free economy. Similar to the establishment of the Bank of England, the establishment of cryptocurrency infrastructure has been driven by persistent and increasingly serious threats to financial stability: systemic fault lines created by the macroeconomic problems caused by the 2008 financial crisis.

If you can not beat them, join them … right?
Because the central bank used to strengthen economic education, it now plays an opposing role. For those who managed to connect the dots in 2008, came the realization that central banks no longer exist as stewards and protectors of national currencies, but rather as instruments to create politicized market distortions, leaving the debt to preserve wealth in favor of creating unlimited and cheap terms for government debt. While many of the underlying intentions were benevolent, the process served at its core to punish depositors and reward ruthless debt.

Meanwhile, it took some time for the potential of digital assets to reach its potential and approach something of a critical mass, although fortunately full adoption would not last as long as the Industrial Revolution in Britain. Over the last 12 years, cryptocurrencies have gone from unexplored to new, which has led to a very growing interest. As a result, there are profound changes affecting the mechanisms by which investors, the investment industry, asset managers and even the commercial banking sector handle cryptocurrencies.

This interest has become stronger as we enter a period of deep economic uncertainty and a growing awareness that structural integrity is moving away from traditional investment alternatives. Not only that, this increased economic innovation and public interest have largely gone out of the control of central banks, if not outright hostility, led by government bank regulators.

Now many central banks are trying to join a game that has tried almost every way to beat it, with digital currencies embracing the radiance of cryptocurrency innovation, while avoiding the innovation and underlying philosophy that made these innovations so popular from the start.

Follow or turn off the road
The popularity of cryptocurrency is largely due to its resilience – it is everything the independent financial community needs, from digital currency to speculative financial instruments and smart contracts that can become the backbone of smart financial technologies.

While serious central banks may try to capitalize on the hype surrounding cryptocurrency, the success of cryptocurrency heralds an important end to the critical aspects of the central bank’s monopoly, offering a more competitive way to facilitate commercial transactions and provide a more stable way of storing funds. Cryptocurrencies actually provide a real return on “cash” deposits, something that the monetary and banking system has long abandoned. First of all, cryptocurrencies reveal the fictitious principle of fiat currencies.

Cryptocurrencies as an ecosystem will increasingly limit, reorganize and set the standard for government macroeconomic policies. There is no doubt that viable alternatives to fiat currencies will push the latter to the margins of trade, while reducing the amount of tools the nation state has to organize or respond to changing economic conditions. First, this means that the financial participation of the state can no longer be a rule in itself.

Source: CoinTelegraph