The Future of Cryptocurrency

The global monetary system is falling apart. The Federal Reserve has dropped the reserve requirement to zero and is now buying junk bonds. This is a golden opportunity for cryptocurrencies to move into the mainstream. The question is, are they capable of performing at least as well as fiat money? Unfortunately, no.

The problem is that cryptocurrency enthusiasts mischaracterize cryptos as money. To support this notion, they often list the three main functions of money as a unit of account, a medium of exchange and a store of value. However, this list only describes the main functions of money and not what it is. Much confusion has arisen from failing to recognize that “Goods are wealth which you have, while money is a claim on wealth which you do not have. Thus goods are an asset; money is a debt.” - Carroll Quigley. Money is a security that acknowledges a debt owed. This is why cryptocurrencies are not money. Even the SEC now views cryptocurrencies, like Bitcoin, as speculative investments instead of securities because they do not secure assets. Having mostly speculative value also means that such cryptocurrencies have an indeterminate value that constantly fluctuates, making them unusable for anything besides trading.

 

So what is needed to enable a cryptocurrency to compete against fiat money?

First, to function as money a cryptocurrency has to be issued as a security, otherwise transactions will be barter. However, securities cannot be issued by a decentralized system. Only a legal entity such as a corporation can issue securities. Once issued such a cryptocurrency can be used in a decentralized manner, but it must be legally issued first.

Second, the main problem with fiat money is the fractional reserve system that permits creation of money without underlying assets, which is essentially a legalized counterfeiting of money. This is what cryptocurrencies are able to solve using a public blockchain such that the total amount of cryptocurrency in circulation is always equal to the value of the underlying assets. If the underlying assets are denominated in this cryptocurrency then it would directly represent the underlying. This approach would make the cryptocurrency creation process public, while allowing transactions to be kept private.

Third, a cryptocurrency requires a monetary system, i.e., a set of legal institutions to allow this cryptocurrency to function within the economy. At a minimum, the system must have the means for maintaining accounts, performing transactions, resolving disputes, and making and servicing loans. Such a monetary system would permit a cryptocurrency to function legally within the economy.

Finally, the system must be controlled by its members, for example, as a credit union.

Given all this, it is clear that none of the existing cryptocurrencies are suitable for use in such a system. This is why Axio was invented. Axio was specifically designed to satisfy the fundamental goals for which bitcoin was invented for and to be able to function within the economy.

For more information about the Axio Monetary System, please visit the Axios Foundation website. For an overview please refer to the Pitch Deck, with further information disclosed in the Blog, Whitepaper, Business Plan, Executive Summary and the Axio Token Terms of Sale.

 

What is Next for Cryptocurrencies?

Bitcoin was invented as an experiment in decentralized, peer-to-peer money. It sparked a revolution in thinking about finance, freedom, and trustless systems. Since then, countless projects have sought to improve upon that idea—but more than a decade later, no cryptocurrency has succeeded in becoming functional money.

The problem isn’t a lack of effort. It’s that cryptocurrencies face fundamental limitations.

Most cryptocurrencies have indeterminate value, fluctuating wildly based on speculation and hype. They may be useful for trading and certain niche activities, but their volatility makes them unsuitable for regular commerce or long-term saving. A decentralized design also means there is no one to resolve disputes, enforce contracts, or help when things go wrong. These limitations prevent crypto from supporting business operations or integrating into real-world legal and financial systems.

Despite this, many crypto advocates resist acknowledging these structural flaws. The early ideals of decentralization and censorship resistance became articles of faith, shielding the space from criticism and reform. Rather than evolving, the crypto movement doubled down on ideas that never delivered on their promise.

To move forward, we must recognize that no real progress toward usable, equitable money has been made in over a decade. Cryptocurrency as it stands has failed to solve the problems it set out to address—chief among them, breaking the monopoly of the banking cartel and giving people control over their financial future.

We need a different approach. One that keeps the original goal in mind: to create money that works outside the banking system but within the broader economy. Money that is not speculative property but actual currency—backed, legal, stable, and under the control of the people.

That project exists. It’s called Axio.

Axio began with the same inspiration as Bitcoin, but without the dogmatic belief that decentralization alone would solve everything. Axio abandons the illusion that speculation is utility and instead focuses on the core of what money is: a claim on productive effort, governed by law, issued responsibly, and embedded in a system that serves the public good.

Axio transforms tokens into money—not just in name, but in structure, function, and value. It is a full-reserve, asset-backed monetary system designed to fulfill the original promise of crypto: independent money, in service to humanity.

For more information about the Axio Monetary System, please visit the Axios Foundation website. For an overview please refer to the Pitch Deck, with further information disclosed in the Blog, Whitepaper, Business Plan, Executive Summary and the Axio Token Terms of Sale. 

 

Axio and Deflation

In mainstream economic theory, deflation is defined as a general decline in prices—typically framed as a dangerous phenomenon that leads to reduced spending, slower growth, and economic stagnation. These warnings, however, are based entirely on the behavior of inflationary monetary systems like the one we have today, where the value of money steadily declines over time and debt burdens are softened by devaluation.

Such systems are designed to erode the purchasing power of money by default. That’s why deflation is treated as an anomaly to be feared. But this view overlooks a critical possibility: what if money itself could gain value in a healthy and sustainable way?

This is the principle behind the Axio Monetary System, which is inherently deflationary by design. In the Axio system, money is created as a loan and extinguished when repaid. However, the interest payments remain in the system, increasing the value of the remaining Axio in circulation. This structure gives the currency real, measurable value over time—tied directly to productive economic activity.

In such a system, deflation isn’t caused by a scarcity of money, but by the natural accumulation of value within a fully backed, debt-issued currency. This kind of deflation benefits savers and preserves long-term purchasing power—features that are impossible under fiat systems.

Yet deflation must be handled with care. If left unchecked, rising currency value can make it harder to repay loans, potentially discouraging borrowing and productive investment. To ensure that the system remains usable and equitable, Axio introduces a stabilizing mechanism.

Each period, the difference between interest collected and losses from non-performing loans (bad debt) creates a net positive value. This excess can be used in two key ways: 

• A portion may cover the operating costs of the Axios Foundation.
• The remainder can be distributed to all account holders as interest on deposits, providing a fair and transparent method of sharing the benefits of monetary integrity.
  

By issuing this amount as newly created Axio, the system gently offsets deflation without resorting to inflation. This preserves the value of the currency, maintains loan affordability, and delivers consistent rewards to depositors—all while remaining fully backed and auditable.

This approach avoids the boom-bust cycles and asset bubbles driven by credit expansion under fractional reserve systems. It supports a stable economy where productive activity is rewarded, speculation is disincentivized, and monetary value reflects real effort—not manipulation.

In short, the Axio system transforms deflation from a threat into a feature—anchored in accountability, equity, and real economic value. Combined with Axio’s other core advantages, it creates a monetary foundation strong enough to challenge the dominance of inflationary fiat currencies.

For more information about the Axio Monetary System, please visit the Axios Foundation website. For an overview please refer to the Pitch Deck, with further information disclosed in the Blog, Whitepaper, Business Plan, Executive Summary and the Axio Token Terms of Sale.