What is the future of cryptocurrency?

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What will be the future of money? Imagine walking into a restaurant and looking at the digital menu board at your favorite combo meal. Only, instead of being priced at $ 8.99, it is shown as .009 BTC.

Can crypto really be the future of money? The answer to this question depends on the overall consensus on various key decisions, from ease of use to safety and regulations.

Let’s examine both aspects of (digital) currency and compare and contrast traditional fiat money with cryptocurrency.

The first and most important element is faith.

It is essential to believe in the currency that people are using. What gives the dollar its value? Is it gold? No, the dollar has not been supported by gold since the 1970s. So is that what the dollar (or any other fiat currency) costs? The currencies of some countries are considered to be more stable than others. In the end, it is the people’s belief that the government that pays it stands firmly behind it and basically ensures its “value”.

How does trust work with Bitcoin since it is decentralized which means they are not a regulatory body that issues currencies? Bitcoin sits on the blockchain which is basically an online accounting ledger that lets the whole world see every transaction. Each of these transactions is verified by miners (operating a computer on a peer-to-peer network) to prevent fraud and to ensure that no double costs are incurred. In exchange for their services to maintain the integrity of the blockchain, miners pay for every transaction they verify. Since countless miners are trying to make money everyone checks to see if they are working for each other’s faults. This proof of the work process is why the blockchain was never hacked. Basically, this belief is what makes Bitcoin worthwhile.

Then let’s look at security, the closest friend of faith.

What if I have a bank robbery or fraudulent activity on my credit card? My deposit in the bank is covered by FDIC insurance. Chances are my bank will refund any charges on my card that I never did. This does not mean that criminals will not be able to stop stunts that are at least frustrating and time consuming. It is more or less the peace of mind that comes from knowing that I will probably recover from any wrongdoing against me.

In crypto, there are many choices about where to save your money. It is important to know if the transaction is insured for your protection. There are reputable exchanges like Binance and Coinbase which have proven track record of correcting errors for clients. The same is true of crypto as there are fewer than reputed banks around the world.

What if I threw a twenty dollar bill into the fire? The same is true for crypto. If I lose my sign-in credentials to a certain digital wallet or exchange, I will not be able to access those coins. Again, I can’t stress enough the importance of conducting business with a reputable company.

The next problem is scaling. Currently, this may be the biggest hurdle that is preventing people from doing more transactions in the blockchain. In terms of transaction speed, Fiat Money moves much faster than crypto. Visa can handle about 40,000 transactions per second. Under normal circumstances, a blockchain can handle about 10 seconds per second. However, a new protocol is being developed that will increase to 60,000 transactions per second. Known as the Lightning Network, it could create the future crypto of money.

The conversation will not be complete without talking about the benefits. What do people usually like about their traditional banking and spending methods? It is obviously easy to use most of the time for those who like cash. If you are trying to book a hotel room or a rental car, you need a credit card Personally, I use my credit card wherever I go because of convenience, security and rewards.

Did you know that there are companies in the crypto space that provide all of this? Monaco is now issuing a Visa logo-ad card that automatically converts your digital currency into local currency.

If you have ever tried to pay someone, you know that the process can be very tedious and expensive. Blockchain transactions allow anyone to send crypto to anyone within minutes, no matter where they are. It is cheaper and safer than sending a bank wire.

There are other modern methods of money transfer that exist in both worlds. Take, for example, applications like Zelle, Venmo and Messenger Pay. These apps are used by millions of millennia every day. Did you know that they are also starting to include crypto?

The Square Cash app now has Bitcoin, and CEO Jack Dorsey says: “Bitcoin, for us, is not stopping buying and selling. We believe it is a transformative technology for our industry, and we want to learn as soon as possible.”

“Bitcoin allows more people to access the financial system,” he added.

While it is clear that Fiat costs still dominate most of our money transfer methods, the new crypto system is rapidly gaining ground. The evidence is everywhere. Prior to 2017, mainstream media coverage was hard to find. Now almost every big business news outlet covers Bitcoin. From Forbes to Fidelity, they are all weighing in with their opinions.

What is my opinion? Perhaps the biggest reason Bitcoin is successful is because it is fair, inclusive and allows financial access to more people worldwide. Banks and large institutions see this as a threat to their very existence. They are on the losing end of the world’s largest asset transfer.

Still no decision? Ask yourself this question: “Do people have less faith in the government and the bank?”

Your answer to this question may be what determines the future of money.

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