What is a cryptocurrency, first of all? A cryptocurrency is a property that “uses powerful cryptography to safeguard monetary operations, regulate the creation of extra units, and validate the transfer of assets” On CoinMarketCap, at this time, there are 5,737 cryptocurrencies listed.
Many of the 5,737 cryptocurrencies run on a blockchain, simply a collection of connected informational units in a chain-like fashion. Blockchain is important primarily because it makes cryptocurrencies possible. Cryptocurrencies like Bitcoin, which is being traded in the bitcoin revolution, have been this technology’s most successful use.
The possibility that one or both of these 5,737 digital assets will replace the dollar, as well as other fiat currencies, is the only aspect of cryptocurrencies, in my view, that will significantly alter the world. If and when that occurs, central banks will end up losing their influence, many of the world’s private banks’ managers will lose a significant portion of their ability to generate profits, inflation as we currently know it will virtually vanish, and governments’ opportunity to pay by printing more money (or by trying to add zeros to bank accounts, as they currently do), will virtually vanish.
The expansion of the supply of money allows the government to spend more while avoiding our attention or at the very least making it more difficult for us to do so. It’s more difficult to comprehend why people seem to always be struggling financially when the state is covertly producing money.
For example, how many men and women are employed today compared to when each home only required one wage earner? Several of us now have twice as many employees per home with higher pay, even though the salary should be around two times when there are twice as many employees. Think back to 50 years ago when many homes could manage with just one person working outside the home.
A cryptocurrency can eliminate “money power” on a global scale. Those who own banks are among the super-wealthy who are part of the money power. National governments are also a part of it, almost all having a national currency that creates money without any form of backing.
As long as unbacked money has been printed, the power of money has been unnaturally powerful. Strong enough to contribute to wars, runaway government expenditures, and exploding asset bubbles.
Blockchain technology is being used by businesses to manage pharmaceutical data, track freight shipments, and track the provenance of food, among other things. Each application highlights how blockchains can maintain an accurate record of data in the system that is difficult to alter.
Even still, some people are skeptical of the technology’s usefulness. Yes, it is excellent for cryptocurrencies. But detractors laugh at the notion that it will transform anything. According to Weaver, someone who claims blockchain can be utilized to solve Problem X is misinformed.
It’s not so much because countries have bad leaders, and that’s why their governments must default because of so much debt; instead, they were able to obtain that debt via one or maybe more central banks in an unnatural way. Unfortunately, when given power, people often abuse it.
The chain has been called the most significant technological advancement since the internet. Investments valuing billions of dollars have been made in projects developing blockchain technology.
(Full disclosure: My company owns Bitcoin, Ethereum, XRP, and other cryptocurrencies.) Cryptocurrency is unique because it offers the anonymity of traditional currency without the need for centralized oversight from a bank.
However, anyone wishing to enter the blockchain industry should know that the technology has many subpar uses. I’ve observed businesses utilizing blockchain technology purely because there is so much excitement surrounding it. A centralized database is frequently a preferable option for data storage. Therefore, carefully analyze the usage of bitcoin for your business or for a particular project to ensure that there is a real need for the technology.
People have yet to learn what decentralized applications will emerge from the blockchain industry, but it’s a field to keep an eye on in the years to come.