What are Cryptocurrencies?
Money, and the forms it takes, has always changed and evolved over time.
The system we have today was born several hundred years ago. The basic concept moved from gold and silver-based coinage to what we have now – currencies backed by governments. But the digital age is leaving that inefficient system behind gradually. The age of decentralized cryptocurrencies is here and working well. Just as other technologies have overtaken snail mail and landlines, money too is being revolutionized.
The monetary norms are being overturned by these cryptocurrencies, which represent a better way of doing things.
It’s expected that these new and better financial systems will greatly benefit ordinary people everywhere. The cost of living will go down, financial opportunities in greater number will appear and be more easily accessible. Decentralization can even improve the services and the products we consume. Savings will appreciate in value and the widespread general effect will be greater freedom financially.
The world of money and the wider financial systems are changing inexorably. Change is a given and will happen. The world needs new services and products to guide this transition period securely and safely.
What makes Bitcoin the cryptocurrency of choice?
Bitcoin is the outstanding example of the new digital asset class. Innovation and new cutting edge technology has driven its amazing growth since it was founded in 2009. Users of Bitcoin and its like number in the tens of millions worldwide, spanning 100+ countries. Well known individuals, leaders in their field, have hailed it as the biggest thing since the advent of the Internet itself. They feel that a new age is dawning, called the Internet of Finance (IoF), which could potentially re-shape the world’s financial systems from the ground up, driven by its enabling blockchain technology.
Investors and business people are flooding to the industry. Blockchain technology, and Bitcoin itself, are now high profile opportunities across the globe. In fact, an economy built on Bitcoin and its blockchain technology is already forming gradually. This is evidenced by huge corporations such as Goldman Sachs, Softbank, Google and even the NYSE funding several startups in the industry. Undoubtedly, industries such as banking, audit, insurance, notary and securities will adopt blockchain technology within ten years or sooner. Bitcoin and blockchain technology could well generate hundreds of billions of US$ to the economy.
In 2017 alone, Bitcoin’s valuation jumped by more than 1100% and pushed its market cap to new, higher peaks. That exceeds the market value of giants like Morgan Stanley and Goldman Sachs. Observers expect it to feature on the Forbes List shortly. Market analysts pegged the worldwide blockchain sector at a total market cap of over US$ 600 billion at 1/Jan/2018.
Informed opinion has assessed Bitcoin and associated blockchain technology. The general body of sentiment can be summarized in these five views:
- Bitcoin matches the profile of many conventional assets and can be considered a virtual good
- As a valid peer-to-peer means of making payments, Bitcoin demonstrates potential to match Visa as a market leader.
- As an established recognized technology, Bitcoinblockchain can be incorporated into other public blockchain applications with licensing fees paid in Bitcoin. That would make Bitcoinblockchain the base architecture and platform on which future blockchain applications could be developed.
- As a virtual Internet currency, Bitcoin exhibits many characteristics of conventional currencies and also of methods of payment in some Internet groups.
- Just like gold, Bitcoin can be considered a reserve asset. It possesses outstanding capability for facilitating preservation cost, efficient payments and other activities due to its suitability for fast online transfer, its divisibility and its standardization. That all adds up to a potential for becoming something of a digital gold in terms of an asset. Eventually it may possibly replace gold in an Internet of Value (IoV) age.