Since the inception of bitcoin, cryptocurrencies have disrupted the financial system of the world. Introduced to the world a decade ago, bitcoin raged war against fiat currencies controlled by authorities. Recently, the Grammy award-winning American singer, Akon endorsed bitcoin while rejecting fiats such as the U.S. dollar. During a radio interview, the rapper leashed on the U.S. dollar while favoring the concept of decentralized digital currencies.
— Coinsnobiety (@Coinsnobiety) September 9, 2019
Akon elaborated that money is the biggest business controlled by governments. He also stated that people need to understand money and how it works in order to understand the idea and working of cryptocurrencies. However, he added that one doesn’t need to be highly qualified or educated to understand cryptos.
He accepted that bitcoin, blockchain, etc., can become confusing for many people. Therefore, he guided the way out of this maze by advising people to look where it all boils down. According to Akon, assets drive their value by gaining the trust of people. In simple words, he meant that the trust of people gives value to currencies and assets.
The host of The Breakfast Club, DJ Envy was not buying into Akon’s view. He questioned the intrinsic value of cryptocurrencies with an example. While lifting a pen from the table and assigning a value of $1000 to it, the host asked that who was in charge to decide that the pen actually had a $1,000 worth.
To understand the point of the host, let’s say that the price of bitcoin is $10,264. The host was actually inquiring how bitcoin was assigned this value and on whose authority it was assigned. He also mentioned the U.S. dollar and explained that it had a worth defined by the government that is uniform all over the country. Unable to comprehend cryptocurrencies, the host regarded cryptos as scams.
Akon corrected the claims made by the host and clarified that the U.S. dollar is not backed by the government. While uncovering the reality, he explained that US.. didn’t have sufficient resources such as gold to back up its fiat currency.
He compared other countries with the U.S and said that other countries were rich in resources such as diamonds, gold, etc. He openly and fearlessly said that all U.S. had to back its currency was its military, rather than some natural resources. Afterward, he concluded that it was not the backing of assets and instead, it was the trust of people that gave dollar its value.
Akon is a very famous celebrity all over the globe. With about twelve hits ranked among billboard top ten and the singer has won several best selling awards. Furthermore, with his optimistic views on bitcoin, the rapper had won over bitcoin and crypto enthusiasts. Now, while some are demanding a bitcoin song from him, others are looking forward to his collab with Anthony Pompliano, a well-renowned personality in the crypto space.
Akon DM me if you’re trying to drop knowledge on the podcast 🙂
— Pomp 🌪 (@APompliano) September 10, 2019
Akon’s affiliations with cryptos might not be quite popular but they are quite old. The hiphop singer believ that cryptocurrencies are the best substitute of fiat and he even announced crypto project for the African region. Last year in the month of June, Akon introduced his cryptocurrency, AKoin.
At that time, Akon’s vision with AKoin was to introduce stability in the world’s largest emerging economy. He aimed to support entrepreneurship and growth across Africa with AKoin. Besides, Akon also planned to develop a 2000 acre city in Senegal where AKoin would be mostly used.
Although Akon is a musician by profession, he understood the bitter truth regarding the world’s financial system. Since fiat is controlled by banks and other financial institutions, governments are able to manipulate currencies according to their will. On the contrary, bitcoin is the world’s first decentralized digital currency that is not under the control or influence of any authority.
The bitcoin price, unlike fiat, is dependent on the fundamentals of supply and demand only. This confirms that the price of bitcoin can’t be controlled or manipulated easily. In addition to that, as mentioned by Akon too, blockchain technology behind bitcoin is very secure. Once a transaction is recorded on a blockchain, it is impossible to alter the details.
While bitcoin continues exhibiting security and decentralization, its rivalry with fiat and financial system will carry on. Although celebrities like Akon are very transparent about the flaws of fiat, this doesn’t guarantee a healthy future for bitcoin and other cryptos. Let’s see if more pioneers of industry enter crypto space in the near future in support of bitcoin.