We have mentioned just how much potential crypto could have before. They are a system wholly separate from any seen before. No centralisation means no control by traditional institutions like banks and governments. This could mean a system truly unlike anything in the modern world of nation-states. We could see something closer to systems before institutional power was so all-consuming. As such, in this article, we would like to explore the potential of cryptocurrencies in the future.
The current state of crypto
So far, the influence of cryptocurrencies has been rather superficial. People have looked at the early success of the ‘bitcoin millionaires’ and felt an opportunity arise. Bitcoin went from a valuation of below $1 and neared $20,000 at its peak. Following this, as a whole slew of copy cats appeared, offering new twists on the old formula. All of these new coins presented an opportunity to make money for people. This felt like an excellent opportunity for people to start investing and make money in this market. This is because the market it, as of yet, highly unstable and subject to wild price changes.
The original phase of huge success is now over, though, and has transformed into something else. Now, word has gotten out and everyone is trading in crypto. When everyone is investing in the same thing, you are a lot less likely to be successful. There is no such thing as a sure thing in trading. If you manage to properly predict when prices change, you can make a considerable profit still.
These original success stories, however, invested in bitcoin because they believed in the technology’s potential. They were not simply looking for a quick buck. They saw a future for the technology that very few others foresaw and therefore took advantage of it.
Many countries do not quite accept crypto so far. Some do allow it to be legal, and some don’t. Almost all of those that do allow have quite basic facilities for it. Using them for real-life services or products is difficult. There are only a few online locations which would deem them acceptable, unfortunately. Europe seems to be the only place that is putting proper systems in place. Banks are starting to offer services in crypto in Germany, for example. We still have to await further developments, however.
The potential of crypto
There are many possible advantages crypto can give the world. First of all, it can help become a medium for trades worldwide. Currently, as is, the US dollar stands as the standard for almost all international trade. It is relatively stable, but that does not change the fact that its value is tied to the value of a nation. It could become quite unstable without warning. This is why a cryptocurrency could stand as an excellent medium for trade worldwide. Especially as a safe-haven currency. It would also help make sure that no one nation has such a large influence on all other economies.
Anonymity with crypto
Cryptocurrencies also offer advantages in terms of anonymity. Due to the fact that many you have to transfer money digitally through a bank, all your transactions are on record. This means the proper authorities could find out any of your transactions at any time. This can be quite disconcerting, as no such thing existed in the past. You could trade fiat currencies (and still can), and no one would be the wiser. Currently, there is no escape from surveillance. This is especially worrying for, say, political refugees. Cryptocurrencies offer the perfect solution to this. You can transfer your funds, and no central power will know about it. Easy as that!
Crypto currencies have a supreme advantage with blockchain technology. These online ledges appear to be very safe so far. With all the oncoming cryptocurrencies coming into the market, it seems that change to the technology is inevitable. People keep working on blockchain, and it is likely we will see a future where blockchain is even safer than it is today. Remember, blockchains are quite young as is.
What needs to happened
As for the future, the main thing that needs to happen is that cryptos must find regulation. This could happen in a few different ways. State sponsorship could help. However, they could end up co-opting the currencies, and the end result would be the same. The other option is a crypto attached to a real asset, such as gold. Whatever the case, cryptocurrencies will need to be more stable before people entrust their livliehoods with them.