The future of Cryptocurrency and Blockchain. Does
Cryptocurrency has the potential to replace FIAT money?
With
the rise of disruptive technologies and new methods for exchanging currency,
there are many concerns about how these changes will affect current financial
systems.
Since
Bitcoin created a whole new way to exchange money in recent years, people have
been curious as to what effects this innovation is going to create when it
comes into contact with old-fashioned banking practices. Will cryptocurrency
lead us down an uncharted path? How much do we actually know about the
consequences that come from using such currencies?
The
ground reality about Blockchain-based system
One
of the main arguments about Cryptocurrency is that they are inherently trusted
systems. What does this mean? Supporters claim it means cryptocurrencies don't
require any sort of trust beyond trusting in math and code since there isn't a
government or central bank involved with them at all.
They
would argue this makes crypto-currency superior to traditional currencies
because you can't just have faith in one entity like a country's federal
government when dealing with physical money; but rather, as long as the digital
currency has enough people who believe/trust its worthiness then it won't
fail—it will theoretically be more stable than fiat (physical) cash which could
collapse if everyone chooses not to use paper bills anymore for whatever
reason.
Libra:
The new knucklehead in the world of Cryptocurrency
Facebook
is determined to provide a cryptocurrency that will not only meet the needs of
consumers in various countries but also combat international payment barriers.
Libra was designed for low transaction costs and fees as well as global
accessibility.
Criticism
faced by Cryptocurrencies
There's
a lot of talk about the inherent worth of cryptocurrencies. Does it have any?
Well, that depends on who you ask.
One
side believes there is no intrinsic value to crypto, and instead, its perceived
worth comes from how much people want them, while others believe their value
will come from society eventually recognizing some form of the gold standard
for valuations despite not having one yet themselves.
Cryptocurrency
has no history of long-term value. Curiously, Cryptocurrency is often held for
some reason by people who are otherwise staunch supporters of the currency's
ability as a medium of exchange.
What's
the future hold for Cryptocurrency?
In
countries all around the world, many legislatures are starting to adopt
Cryptocurrency and legalize it. This not only indicates a positive attitude
towards cryptocurrencies but also looks promising for what is in store as far
as crypto's future goes.
Some
of these very same legislators have overturned bans on Bitcoin or other digital
currencies because they recognize how important financial freedom can sometimes
be. However, this came when regulations were put into play so there would still
be some control over who could buy them and from where people could purchase
them.
While
heated discussions abound about how important it is to regulate artificial
intelligence to ensure AI use ethically and responsibly, likewise regulations
on Cryptocurrency are vital. As we have witnessed recently with Google, Amazon,
Apple, et al., legal challenges arise concerning antitrust issues due to the
lack of regulated tech giants like these firms.
Cryptocurrency
is a strange thing. This young, tech-savvy generation is created by this young,
tech-savvy generation trying to find their way in a changing world economy and
society that they can shape with the power of code over physical work. The
future for Cryptocurrency looks bright, but what will happen when China makes
it illegal? Is there something we don't know about cryptocurrencies?
Conclusion
Cryptocurrency
is a relatively new technology, and it's barely been around for 10 years. Right
now, we don't have enough information to say what its future might look like
with any certainty, but the potentials are exciting so far as they relate to
other industries outside of finance - such as health care or environmental
protection.