Is Cryptocurrency Here to Stay?
Are you considering an investment in cryptocurrency? You’ve probably noticed the endless headlines praising this completely new and digital form of currency. Whether it’s Bitcoin, Bitcoin Cash, Ethereum, Litecoin, or any other, you’re wondering why it’s making such an imprint on society.
Let’s explores several reasons why cryptocurrency is becoming so focused on by investors, technology buffs, investors, and more. Learn why you should pay attention to the rise of digital coins that has come about over the past several years.
1. Cryptocurrency combats against the monopoly of banks
If you’ve ever tried to wire transfer a sum of funds to friends, family, or clients, you may have been quite shocked at the outrageous fees involved in order to complete your transaction. Money transfer companies like Western Union rely on their stronghold over the industry. They know that very few companies do what they do, and they take advantage of that by setting the price of transfer. Because very few organizations allow users to transfer instantly around the world, they make a great profit from customers who are forced to use their services.
Companies such as PayPal have come about recently to compete against businesses such as Western Union. And PayPal has done a great job at making money transferring fast, cheap, and easy. However there’ve been many complaints against PayPal for monitoring and limiting transfer activity. There have also been a few complaints regarding customers’ accounts becoming suspended without any forewarning.
The problem with both Western Union and PayPal is that they are owned by a very small portion of businessmen and businesswomen who call the shots. Policies can change at any time without notice. Fees may come into being that aren’t agreed upon by the general public. These companies have the final word in how money transfer takes place.
Cryptocurrency is the anti-monopoly. Its money transfer structure is Open Source; it’s visible for everyone to see. Additionally, its infrastructure is not easily changed. In order for a cryptocurrency to change how it operates, over 50% of the computers and networks mining that cryptocurrency would have to agree upon the new set of rules. This sort of democracy presents any one person or organization from calling the shots that everyone would have to abide by.
This 51% rule has been put into action several times in the past. For example, in August of 2017, a majority of Bitcoin miners agreed that the blocksize was too limited – a mere 1 megabyte per block. All miners agreed on a new standard of 2mb per block. This meant that more transactions would be verified per block, and that implicates both faster transaction time and reduced fees. The new digital currency that rose from this new agreed-upon set of rules is called Bitcoin Cash.
Bitcoin Cash (or Bcash by many) is a perfect example of how the democracy of cryptocurrency must occur in order for a change to take place.
2. Cyrptocurrency Promotes Anonymity
Identity is sacred when it comes to money transfer. Take into consideration the many stories of insurance providers nulling citizens’ insurance policies because of a conflicting purchase. For example, someone who receives the highest benefit from a life insurance policy may be at risk for a policy nulling based on a purchase they made for a friend (such as cigarettes). While it sounds outlandish, these invasions of financial freedom happen around the world on a daily basis.
Governments, insurance providers, and even the banks themselves are monitoring your activity. Every item you buy in person or online with a credit card is saved in a database somewhere. You might say, “But I don’t care; I don’t do anything bad,” this breach of privacy is a peephole into your personal life. You never know when or how your purchases may be used against you, whether now or in the future.
Cryptocurrency is completely anonymous when used right. There are no transaction labels; there are simply public addresses. It is true that a public address may be tied to a company or person, but that party must willingly disclose their information online in order for it to be public knowledge. Even if such an entity publishes their public address, it’s very difficult to know who the senders to and receivers from that address are unless they publish their own identities. Simply put, it’s very hard for a government or organization to map out all of the identities on the blockchain (public record).
When you send or receive a cryptocurrency, you’re adding several more layers of protection to prevent unwanted parties from snooping into your financial spending habits. As technology becomes more prevalent, there will be more purchase monitoring by the governments and banks. It’s best to get into a habit of keeping your spending habits safe, even if you are doing absolutely nothing risky or wrong!
3. Cryptocurrency Encourages Innovation
While Bitcoin is the ‘name brand’ cryptocurrency, there are hundreds others quite similar – and even different – to it. Each individual digital coin adopts its own set of rules, freedoms, limitations, and technologies. Would you believe that despite all that has happened so far that we are still in the beginning? There’s much talk about how cryptocurrencies are not only the future of finance but also the future of the digital world.
Take into consideration, if you will, an Open Source Internet. Imagine that this internet is stored remotely on each and every electronic device connected to the network. There’s no single on/off switch. There’s no single point of change or modification. This sort of hypothetical Internet is controlled by the masses; everyone has an equal say how it evolves. This is just one single example hypothesized by many cryptocurrency experts. This is a very simple vision into what could come to be.
As governing agencies impose more restrictions upon the general public, more extreme measures must take place in order to encourage innovation, stifle restrictions, and snuff out snooping and breaches of privacy!
4. Cryptocurrency Could Very Well Be The Future As We Know It
If you can remember (or imagine) the Internet as it existed in the late 80’s you’d see a world where computer nerds embraced this newfound form of communication. However, despite its amazing potential, there were many roadblocks and speed bumps, namely data transfer speeds and processing capabilities. The Internet in the early days was seen as a hobbyist’s evening project, not an integral foundation of the future.
Cryptocurrency could be to finance as the Internet is to communication. If you truly believe that we’re still living in infant years of cryptocurrency, then you understand that while there are many obstacles to overcome and puzzles to solve, there’s also a very bright and prosperous horizon to look forward to. If you believe that cryptocurrency could be the very expression of finance that the world needs, much like credit cards were for paper-less transactions, then it’s best to consider what place you’ll take in this voyage to the future. You might evaluate if an investment in cryptocurrency is right for you. Your future self might thank you for it.