By Steven Krohn · July 30, 2018
“Bitcoin gives us, for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user, such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate.” – Marc Andreesen
Cryptocurrency, Bitcoin in particular, has taken the world by storm. Blockchain and Bitcoin were among the most utilized keywords on search engines in 2017. So, does crypto represent the future currency.
A multitude of people were talking about these technologies and how they can be advantageous in a vast array of industries.
The excitement over Bitcoin seemed to be dwindling just recently due to its declining price. However, the enthusiasm has bounced back as the price continues to increase. Once again, it appears that crypto is the future currency.
People continue to find great utility for blockchain technology. There are countless new platforms being built on the Distributed Ledger System (DLS).
In this blog, we briefly review how Crypto can effectuate business and why it could very well be the future currency. We will also look at obstacles expected in it’s attempt to garner broader acceptance.
There is a timeless principle that holds true for every industry. That is that good technology always drives out bad technology. It happened with the printing press, mass production, paper money and computers.
The same is happening today with digital currencies as an abundance of people expect it to supplant fiat currency. It appears that crypt is potentially the future currency.
One of the primary reasons why crypto is superior is that it allows global transactions to be consummated within minutes. Even the most remote locations on the planet will benefit.
Fiat currency is limited in its reach but digital currency is truly limitless. This is exactly why crypto is considered the first global currency. Is crypto the future currency?
Crypto is also superior because it can improve e-commerce. Cryptocurrencies can significantly reduce the risk of fraud for shoppers, etc. It provides the equivalent for vendors and sellers.
In addition to the mitigation of risk, cryptocurrency creates additional opportunities for world-wide business. Cryptocurrency transactions are permanent and very secure.
Crowd funding is another function that cryptocurrency is increasingly being utilized for. It represents an effective way to raise funding for new projects.
International investors around the world can participate in raising revenue while improving new businesses.
A big benefit of cryptocurrency is anonymity of transactions. Some people believe it is the panacea in the defining features of cryptocurrency.
This is what makes the new-age currencies attractive to a lot of people. Is crypto the future currency?
Others, such as government regulators, believe crypto has designed a mode for money laundering. They specifically mention drug lords and cyber-criminals in their comments.
Cryptocurrency also improves accountability for businesses and individuals. They allow for a complete record of transactions. That documentation is kept in the blockchain ledger.
The instrument cannot be manipulated by one individual or any group. Developers say that they can adopt this function to improve reputation and perception.
Fiat currencies in many countries tend to fluctuate due to unstable economic conditions. The public in these countries now has an alternative. Crypto coins are often seen as a stable means of exchange.
Crypto is extremely popular in countries like Zimbabwe and Venezuela.Potentially, crypto will first begin to replace regular currency in these countries. That will actuate into a global effect going forward.
Smart contracts are specialized self-executing contracts that automate transactions. This cannot be executed with existing currencies. Smart contracts can significantly improve and revolutionize currency.
Will crypto be the future currency?
Crypto appears to be in a strong position to replace fiat currency eventually. Certain developments must eventuate before existing currency models are replaced.
First is the transaction cost. This is something that some people can have a problem with. Each transaction in crypto results in the network operators and exchanges receiving a small percentage.
While the cost is at an all-time low, it is still not zero. Depending on how you look at it, we don’t have to pay an extra percentage when using fiat currency. A $10 pizza costs $10. With crypto, it costs $10.20.
It may not seem like a big deal but it is could be an obstacle in adopting crypto for day-to-day use. Of course we must consider taxes on fiat currency for the purposes of this discussion.
Second, we need to see improvement is regulatory support. Most are in favor of a decentralized cryptocurrency every bit as much as any crypto enthusiast.
Yes, it should be free from government intervention. That said, reality and experience demonstrate that if/when regulators get involved in digital exchanges, prices plummet.
Existential questions get raised about the future of crypto. Ironically, it might be that without government support, cryptocurrency can’t get very far.
Third, manipulation of crypto currencies needs to be reduced, if not eliminated. The crypto markets are plagued with hundreds of schemes and scams. Hacking, fraudulent ICOs, manipulation and scams litter this industry.
Hopefully, we will make the necessary improvements to eliminate these issues in the future. The sooner the better.
Crypto presents plenty of opportunities for improving business transactions. There are also challenges that must be overcome.
We believe it is a revolutionary technology that has presented itself at the perfect time. It’s at the cusp of a digital revolution.
Crypto represents the next logical stage in the evolution of money. We’ve see barter to coins, coins to paper and then paper to digital money.
So the question is whether crypto is the future currency.
Only time will tell if the answer is yes!