The internet and the digital age has slowly but surely swept aside much of the things that we once used and once cherished. Television has been replaced by the likes of Netflix and on-demand shows which we can watch on our laptops and tablets, the postal service has become a relic of the past since the emergence of e-mail and even talking on phones has taken a step back thanks to the rise of instant messaging and social media platforms.
So what is the next part of our lives which looks set to be banished to the past because of new kid on the digital block? Well, for many, the answer to that is cryptocurrency, digital currency to replace money. Let’s take a look at why this is the finance of the future.
What Is It?
In short, cryptocurrency is digital money which, whilst it can be physical, is generally nothing more than numbers on a screen with a value that can frequently change. The currency operates on a peer-to-peer style system and this means that there is no centralization of the currency, i.e. no bank or country who releases the currency. Instead, cryptocurrency is in limited supply and it is created thorough mining for it until it there is none left. Cryptocurrency is mined through the solving of a number of algorithms, once the solution has been solved, the currency is theirs. In short, cryptocurrency is defined as limited entries in a database no one can change without fulfilling specific conditions.
Why is it The Future?
The emergence of this type of currency, particularly Bitcoin, the very first decentralized cryptocurrency, has surprised many and in just a few short years, people are buying up cryptocurrency like crazy and using it as a trading asset in the same way that you would with stocks or shares. Because of this success,s more and more currencies are emerging and at the same time, many businesses and vendors are accepting crypto on their websites, the momentum is building.
What Are The Benefits of Cryptocurrencies ?
Cryptocurrency would completely abolish any counterfeiting operations in existence and render counterfeit cash redundant. Cryptocurrencies can not be counterfeited and this would give the economy much more stability.
Identity protection, cryptocurrency dealings are completely anonymous and so you can ensure that identity theft and fraud become a thing of the past.
Instant purchases, if you are buying a home or any other sizable investment, payments can take some days to go through as it passes by 3rd parties. Cryptocurrency would completely negate this necessity and the currency can actually be designed so that it can enable or include 3rd parties in the transaction for approvals or for reference purposes.
Everyone will be able to have access to cryptocurrency, over 2.2 billion people worldwide have access to the internet which means that all of these will be able to have access to the new currency. Interestingly, in Kenya alone, one in three people have a Bitcoin wallet, and that is before crypto has really taken off.
In short, these currencies will gradually take over how we do finance and in just a few decades, we could very well be saying goodbye to money as we know it.