Fintech Genome

5 reasons why cryptocurrencies and the blockchain will live forever


#1

Did the cryptocurrency come to the world seriously? For a long time? Or is it just a fleeting fashion? So, time will put everything on its place. And we will know the final conclusion in the cryptocurrency world very soon. But for now, we can only speculate, hypothesize, or fantasize what will be in future. For today we will tell you some reasons, why cryptocurrency will live forever.

Cryptocurrency is the era of a new economic paradigm.
There is no third party in the cryptocurrency world. It’s a big breakthrough nowadays!
What is the modern economy built on? On futures, on the ever-increasing price of real estate or on the growth of the consumption index. How does the price of real estate rise in our usual economy model? It’s really simple! Cheap loans are issued and people spend money which they will only earn in the future. People have everything and they have nothing more to buy in a global sense. Money has already been wasted for the next 25 years. Money has not been earned yet, but has already been spent. So, since the modern economic model is connected with the ever-growing demand, the price of real estate is constantly increasing, or some collapse occurs. And the main conclusion is that cryptocurrency is the way out of the impasse, which is actually a system reboot.

There is a great metaphor which describes the world economy. So, once there was a village and suddenly a person began building the tower (in the real world the tower is usual loans). And at some point the tower got so big that it started to roll. Ergo falling down, such a massive object could destroy half of the village. Then the owner of the tower came to the residents and said that he needs money for materials to strengthen this structure. But due to strengthening of the tower it only became larger. The more massive the building became, the more funds were needed to strengthen it. However, this tower can not grow forever and sooner or later it is doomed to collapse. Blockchain and cryptocurrencies provide an opportunity to leave a tower of loans and start working in a new economic paradigm.

Social factors of the transition to cryptocurrency.
An overflow of finance between different group of people has always existed. Diverse professions and various castes were leading in different historical periods. And there was an endless exchange of wealth between them. Now this exchange is realized through cryptocurrency. At the moment, the most popular profession in the world is a programmer. The age of the nerds has come.

How much has a programmer earned recently?Their salary was somewhere in the range of 2000-3000 dollars on average. Since now this profession is the most actual, programmers have come up with a model by which they can earn more. Thus, now fixed assets flow from one sphere to another, specifically in the IT technologies. This is also a social evolution. Material goods will always run from one group of holders to another, which is the most relevant at the moment. So earlier, for example, the owners of real estate and officials received more than others and now they must make room for a new sphere and give part of their savings to the caste of nerds.
The time when programmers worked as system administrators in the office and received scanty salaries had passed - now they are a “white bone”. And while the world is ruled by programmers, the cryptocurrency will live.

The constant upgrade of technology.
Right now, there is an objective technologies improvement in the world of blockchain and cryptocurrencies. The “efficiency of action” index increases. So, blockchain can improve the efficiency of almost any industry. Starting with the transportation of fruits or, for example, wine and ending with property rights, tokenization of state property, storage of government’s data and even storage of the documents register. Now it is just hard to find a large corporation that does not make steps towards acquaintance and introduction of blockchain technologies to its structure. It is even pointless to list the names of such companies. It is much easier to name those who refused this idea for some not sensible reasons.

When people talk about cryptocurrency, they basically mean bitcoin, but it’s just the first coin. The first generation coin. Bitcoin is based on the idea of decentralization and independence of emission, which is based on blockchain and gives everyone opportunity to mine new blocks.The second generation is represented by smart contracts and various tools to preserve anonymity. Of course, it is unlikely that one of the coins above will become a popular tool used by hundreds millions of people every day around the world. Perhaps it will be byteball or icon, and may be fourth or fifth generation coins. But it is obvious that this will happen sooner or later.

Globalization.
Cryptocurrency is a child of globalization process. Moreover, cryptocurrency stems from the idea of a global world. Previously, everyone fantasized about what kind of economy can exist in a united world of the future?
Cryptocurrency gives an answer to this question - the future has already come. And geographical boundaries will inevitably begin to fade soon. People finally went beyond the constraints which were created by the governments and showed that they can cope with many things on their own.

When the global Internet will be launched, and the phone will work all around the world, it will naturally make all mobile operators, internet providers, etc unnecessary. And respectively card distributors such as VISA and MASTERCARD will become unnecessary too. People will have their own wallets in their phones, through which they will be able to send money peer-to-peer to a certain person or organization for a specific services.
The same applies to exchanges. It is no doubt that classical exchanges prevail in the world at the moment. But they will be replaced by the world’s best cryptocurrency exchanges such as Chinese LoopRing and Estonean Midex soon. All these arguments are nails in the coffin of the old economic order.

The phenomenon of the ICO.
Everyone can get funding now. And since funding can be received from people’s masses, the amounts can also be very impressive. Each person throws only one dollar, but it can result in thousands or even millions of collected money. Such funding method can reorganise the whole system. Some ideas, that could not get a single chance in business before, now have a real possibility to get money and start developing. “Green energetics” can be one of the examples of such ideas. You can argue that crowdfinding existed before. Yes, it existed. But ICO is just a next level! This way is much more convenient and fast, it does not have some big and obscure commissions and it also gives opportunity to get a clear profit. If we compare it to something - there was a horse and then Lamborghini appeared. And emergence of ICOs is another evidence of evolution, which can not be stopped. ICO market is oversaturated now and probably restructuring of the process will happen soon. For example, almost every project collected millions of USD in 2017. However, nowadays people are ready to invest only in prospective and interesting projects. ICOs help to change the world and that is another reason, why cryptocurrencies would exist forever!