Cryptocurrencies are a brand new financial instrument, and that makes many people understandably nervous about them. It doesn’t help of course that the roller coaster is constantly in motion, making those looking in from the outside a little sick. Investing in something new is both scary and exciting, and there are some who believe that the ride may be over. However, cryptocurrencies are just getting started. We’ve barely touched the tip of the iceberg here, and there’s still a long way to go.
Despite the fact that Bitcoin has been around for some time, adoption is still crawling. It’s still difficult to get merchants to actually accept these digital payments. The market is also tumbling in a painful freefall, and while now it may look as though we have struck an iceberg and we’re all on our way down, the truth is that we are simply experiencing the growing pains of a new market. Every financial market has its ups and downs, and while this recent one is a doozy, it by no means is a sign of the end. If anything, it’s a sign of new beginnings, and it gives us the ability to start a new. It gives us the ability to make better investments, and to increase awareness of cryptocurrencies as a whole.
This new awareness will lead to increased adoption, and soon there might not even be a need for you to use other financial instruments. You’ll be able to pay in a variety of digital currencies at the grocery store, and your electric company will gladly accept Bitcoin for your monthly energy expenditures. People won’t ask how to cash out their cryptocurrencies to fiat anymore, and your paycheck will arrive in the digital currency of your choosing. Perhaps instantly thanks to the many new advances in confirmation times of many currencies.
The mainstream only recently became aware of cryptocurrencies, and now that we’ve got their attention, it’s time to show them what the blockchain can really do. While there are many people who only see cryptocurrency as a speculative asset for others to gamble on, at the heart of this technology it is about much more than that. It’s a living, breathing being capable of quickly evolving and changing itself to meet our needs and to shape our futures. In cryptocurrency, when something is broken, the community votes to fix it. The coin will fork if it has to, and it will adopt an entirely new codebase to better serve its users. It’s not weighed down by bureaucracy or red tape. Change can happen immediately, and that’s something that was never before possible.
Cryptocurrency is not just for buying things discreetly on the internet anymore, though that definitely helped it to secure a foothold initially. Legitimate companies now accept it in exchange for their goods, and now there’s a digital currency for almost anything you can imagine. Projects with lofty ambitions continue to churn out of the space, and they will enable nearly every industry to improve itself thanks to the underlying technology that allows cryptocurrencies to function. This includes the ability to register and protect intellectual properties, providing more efficient management of supply chains, facilitating micropayments for AI software, and the ability to send instant global remittances anywhere in the world. Why is all of this important?
Bright Future Of Cryptos
It’s because it’s becoming more and more clear that the place for cryptocurrencies in the mainstream will be as a global currency. One that is not restricted by borders and allows for people to easily transfer their wealth when they move, or to send it home to their family members quickly and easily. A currency like this can even help those in societies with corrupt governments to store their wealth and protect themselves from their government’s own crashing currency.
However, even outside of these apocalyptic scenarios, cryptocurrencies can bring a great deal of usability to financial markets. Due to their quick settlement times, they can add liquidity to various markets that would otherwise be very difficult to operate in. They can allow financial institutions and investors to make faster investments, with better settlement options regardless of where they are in the world. Businesses can quickly transcend borders without the hassle they are accustomed to currently. Companies who have partnered with Ripple have experienced this first hand, and they are very pleased with the speed and efficiency that the blockchain allows. These businesses who many believe would be enemies of the blockchain are starting to see its usefulness, and that’s a good thing.
It’s easy to paint these companies as enemies of our space. A lot of enthusiasts are afraid that if we let people like this in that soon everything will be regulated, but that’s not a very likely scenario. Cryptocurrency’s reach is too wide. A network like the one that supports Bitcoin can not just be shut down. If you don’t believe that, then ask yourself how successful the government was at stopping piracy, and then magnify that exponentially.
We Must Be Patient
It would be an impossible task, and even if they were successful, a new currency would take its place overnight. Though instead of trying to control Bitcoin, it’s just as likely that these entities will create their own currencies. A digital version of already issued fiat currencies doesn’t seem far-fetched, and it would, in fact, provide a multitude of benefits for a government including the ability to have an immutable ledger of transactions. While the thought of this may horrify cryptocurrency enthusiasts, there’s not really anything that they can do about it.
In the future, it’s likely that we will have centralized and decentralized cryptocurrencies playing nicely right next to each other because frankly, neither group will have any choice in the matter. Big banks and the government can’t stop decentralized currencies from existing, and decentralized currencies can’t stop these same people from creating their own currencies, but that’s not necessarily bad. They will be created to solve problems in a way that is suitable for those who use them, and that’s really what cryptocurrency was about from the beginning. The freedom of choice.