Cryptocurrency a Nowadays Economy

This article explains the future vision of economy through use of cryptocurrency. We get to understand what cryptocurrency is and how it changes the world we live in.

Cryptocurrency a Nowadays Economy

Cryptocurrency a Nowadays Economy

We use money every day but we rarely appreciate its power and its flaws. It's a tool that has been at the center of human progress. And as we build bigger and tackle complex problems, we're going to need the best tools available. We have a global economy. We're going to need a global digital currency.

Cryptocurrency is going to be a great democratizing force for the world because it's going to level the playing field and allow anybody with a cell phone to access financial services. This is going to transform how we think about a real global economy. In order to understand it, it is important that we first define what currency means.

How Cryptocurrency Affects the Everyday Economy

It's almost like a communication tool - we talk about different ways of coordinating human beings. One way that you can do that is with money - you can incentivize people to try to work on the same thing at the same time. We started off building simple systems like a bridge crossing a river to very amazing things like rocket ships. We went from interacting with our neighbors to now transacting with each other around the world and we want to make sure that people can move money freely and our current financial system just doesn't enable that.

So the current systems are very centralized and so we have big banks and big governments. There's a lot of middlemen who make things incredibly inefficient. As an example of an existing money problem, we have the example of Venezuela where money is being printed and people's savings are basically being destroyed. The value of their wealth has been completely eroded. The idea of money saving in a bank account has been taken for granted. The money is in the bank account and it's not gonna disappear or be taken away from us. There are about 1.88 billion people in the world today who have a cell phone but don't have access to any financial services.

What's really powerful about cryptocurrency is that it lets anybody with just a smartphone and internet connection participate in the global economy. Cryptocurrency changes the world in a way that it gives economical stability to the entire world in equal measure.

Benefits of Cryptocurrency and Blockchain

With one dollar bill, it can be handed directly to somebody else. Without a bank in the middle. With digital currency and blockchain, it's actually more similar to cash yet again something can get directly sent to somebody else and it does not necessarily have to go through middlemen like a bank or a credit card company.

We can go back to how we normally transacted which is direct with each other without all these giant central parties in between. When computer scientists talk about the so-called decentralization what they mean is to avoid the idea of a single point of failure. Single point of failure - all money saving is in a single bank and in case that bank fails everyone's out of money. Whereas if you have lots of different individual nodes hard drives and phones and so on that have some money, well, they're probably not all going to fail at the same time. So you no longer need the middleman to keep track of an internal ledger. All these computers are writing everything down. The network effect makes it unbreakable. So technology makes us richer and wealthier because we need less time or less money or less effort to get something done.

Future of Cryptocurrency

Right, now when people think of crypto, they think of investment. There's a lot of talk about prices and how much money has been raised. We'll shift to people actually using cryptocurrency to buy goods and services and transact in the economy.

A more global economy is important because there is talent everywhere but opportunity is not evenly distributed. In a world where technology is fully adopted, it won't matter what country you're born in all that will matter is that you have a mobile for an internet connection and you have skills and knowledge to learn and contribute to the global economy. With one globally respected currency things in a world would be done with much more ease, more investments, and more control over personal finances. 

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