From the presentation of Bitcoin Whitepaper in October 2008 and the subsequent launch of BTC (A Peer-to-Peer Electronic Cash System) in January 2009, the authorities & standards of World’s Giant Economic & Monetary Systems were being challenged, although no one was aware of that gradually spreading cryptographic virus at that time. But with the passage of time, Financial Markets as well as Regulatory Watchdogs have been seen worried about the instantaneous adoption & popularity of digital currencies among the masses.
Although, present economic & financial world has admitted the benefits & innovative applications of Blockchain Technology, which is also the back-end base technology of these digital or virtual currencies, but still some features of said currencies are manifesting critical risks & alarming scenarios which have been seriously criticized & brought under considerations, with respect to multiple core issues including Money Laundering & Financing of Terrorism, by the domestic as well as international regulatory bodies.
Cryptocurrencies can certainly be very valuable to the global economy, and to society in general. Money has always played a critical role in the evolution of society. In order to understand the role cryptocurrencies can play in our future society, let’s look at what money does. Money provides four basic functions; it serves as a store of value, an exchange of value, a means of payments and a common measure of value. Here’s an easy way to remember this:
Historically, it was the invention of money that opened the doors to increased trade (effectively overcoming the challenge of “double coincidence of wants”) and economic growth around the world. But the world that money was invented in had no digital assets. With the invention of the internet and all that it has enabled, we are witnessing a steady transition away of value embedded in physical assets to value created by digital assets. Take, for example, the world’s top five companies are all technology companies, with data as a primary asset.
Cryptocurrency has already commanded a huge audience and shown us ways in which we can use the underlying blockchain functionality to improve current systems. The cryptocurrency boom, bubble, and revolution have been referenced many times, but what could we actually expect from cryptocurrency moving into 2019, having seen its benefits and changes through the past few years?
Some predict that the next few years will see a big change in crypto as institutional money enters the market. This means that those with the big enough investments to really take the revolution forward. Indeed, the number of daily cryptocurrency interactions is up year on year, which shows growth, despite some citing the waning nature of investors wanting to get involved. Moreover, there is the possibility that crypto will be floated on the Nasdaq, which would further add credibility to blockchain and its uses as an alternative to current financial options. But some predict that all that crypto needs is a verified exchange traded fund (ETF). An ETF would definitely make it easier for people to invest in Bitcoin, but there still needs to be the demand to want to invest in crypto, which some say may not automatically be generated with a fund.
Some enthusiasts expected cryptocurrencies to replace fiat money by now. Some skeptics said bitcoin was just money for geeks, and that it would never reach the mainstream. Now, 10 years on, the truth lies somewhere in the middle. Bitcoin has thrived and many other altcoins have hit the market, but the future of cryptocurrency is still vague.
While most people still don’t use bitcoin in everyday life, the number of things you can buy with crypto is growing. According to CoinMap, 14,418 venues around the world currently accept bitcoin. Obviously, that’s not enough to reach mainstream adoption. Maybe it will never be, due to bitcoin’s small supply and unequal distribution.
We need a new coin with better characteristics and a new use that best fits cryptocurrency. To find that coin, let’s look at the industry that perhaps works best with crypto: e-commerce. I don’t know anyone who hasn’t bought something over the internet at some stage. Indeed, e-commerce has grown tremendously over recent years, and it will continue to grow in years to come
Although e-commerce is growing, the obsolete global financial system represents the biggest barrier to its expansion. Currently, banks act as intermediaries between buyers and sellers on the internet. That’s not a big problem for people who already shop online. However, there are many people who could benefit from online shopping but can’t open a bank account.
I’m talking about people from third-world countries where banking systems are undeveloped, as well as disadvantaged people from developed countries. According to some estimates, there are more than two billion people worldwide who fall under this category.
Cryptocurrency could connect those people with the world of e-commerce. After all, they just need an internet connection to get started. There’s no list of requirements for downloading a wallet and using digital coins as a means of payment. You don’t even need to provide your personal information.
There are other benefits, of course. Cryptocurrencies aim to replace centralized systems such as banks, eliminating the need for an intermediary. That will greatly simplify the shopping process, as well as reducing fees for all concerned
In Conclusion, I will definitely endorse the words of wisdom that technology will change, and so must we. Every emerging & innovative technology has its own pros & cons and we must contribute as well as support the positive attributes of that technology for the ultimate goal of its implementation for the benefits of global community & stake holders. No doubt, cryptocurrencies are constituting serious threats to the world in terms of money laundering & its applications in terrorist financing & dark web platforms but still it can be used in more innovative & exploring ways in financial, economical & social platforms under certain basic rules & regulations. For example, we all know that the cross border funds transfers through blockchain technology is much safer, easier, faster & cost effective as compared to that of initiating through traditional financial setups. So, we can use & promote that benefit of cryptocurrency after devising & implementing proper KYC/AML Regulations for that particular sector. And that’s why, global regulatory bodies & watchdogs are also admitting & accepting the presence & importance of blockchain technology & cryptocurrencies with the passage of time and soon we will experience a blockchain friendly universe in upcoming future.