Cryptocurrency: A New Economy
We are currently living in one of the most fascinating eras known to mankind. We are in the age of the digital frontier with the ever-evolving nexus that is the internet.
With the monumental ingenuity that is the internet, a vast new world became available to every individual at their finger tips with a smartphone device. So much opportunity of unknown discoveries awaiting to be explored have been granted to us, as well as unknown dangers. The internet is a powerful utility that has forever changed human civilization.
Enter cryptocurrency. The digital currency that will revolutionize our understanding of monetary value, exchange, power and utility. Most people however simply know it as Bitcoin.
Bitcoin came into existence after the devastating economic housing crash of 2008 (which I know many lives were impacted by, myself and family included). The creator(s) of Bitcoin aimed to achieve at least one massive goal: to remedy and prevent such an economic collapse to never ensue again, by removing the very root cause of such financial turmoil: 3rd party, centralized financial institutions, such as banks and government.
See the White Paper of Bitcoin here: https://bitcoin.org/bitcoin.pdf
Central financial authorities create heaps of issues such as inflation, debt, economic instability, fees, interest etc. Therefore every individual depends upon or trusts in these financial institutions to handle, secure, and control everyone’s money.
Bitcoin has introduced to us a technological system that has made it possible to avoid the need of trust and dependency upon central financial authorities, to be brief creating what is called a peer-to-peer network with alongside a proof of work system, no longer requiring a 3rd party (such as a bank) to manage monetary transactions.
Cryptocurrency has come into the mainstream culture as of 2017, gaining a lot attention from well, everyone, and rightfully so. The potential technology behind digital currency is becoming more of a reality than ever before.
Bitcoin has been designed to prevent inflation from ever happening. It has a market capitalization of 21,000,000 coins, which means that a limited supply of only that amount of coins can exist. In turn, this means that Bitcoin cannot be continued to be reproduced after that amount, making it incapable of being inherently inflated in value.
A major key factor as well in the reproduction of Bitcoin is the method by which a Bitcoin is created. Cryptocurrency is made to be mined, which is a layman’s term for the actual process. In the most basic understanding, it is simply an algorithm problem that is designed for a computer system to solve, with the freedom for anyone to be able to contribute to a large scale mining operation. See picture below:
All of this has enabled one incredible transformation in economic systems: decentralization. Decentralization is the return of power to the collective group of all the individuals who own Bitcoin. It’s kind of a like an economic democracy, restoring power to all people. If there is any desired change for Bitcoin such as updates and upgrades, it must be agreed upon by the majority of the entire network.
With all people in mind, Bitcoin can become globally accepted by all nations of all people, bringing to life a global economy that would be woven together via digital technology, without the restraints of fiat currencies. Transactions of all types would therefore become fast, easy, and less expensive upon acceptance of digital currency and it’s future advancements (that have yet to be made.)
This will eventually lead us into another phase entirely of service and utility based digital coins.
There have been already a myriad of digital currencies created with blockchain technology that provide other functionalities other than just the practical worth of cryptography. There are coins that also offer services and purposes of all variety, capable of being used as more than just mere money. See: Substratum, Siacoin, PowerLedger, Golem
These new types of digital coins may eventually be used for the majority of our utilitarian needs. Such as the internet web, computer hardware, digital cloud storage, advertisements, social networking, and even such basic elements of our lives as electricity, food, and fuel perhaps. I would highly recommend for everyone to learn how fundamental cryptocurrency can become a part of our daily lives.
We are possibly on the verge of a substantial economic shift in the coming decades. Therefore it is at least worth considering the potential of what the future of the world will look like.