Cryptocurrency and the Future Economy

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The infamous Bitcoin is taking over fintech, and it’s at an all-time high in emerging markets. Investors and mainstream media from around the world are embracing and endorsing Bitcoin. People’s Daily, China’s largest mainstream media company, defined Bitcoin as digital gold. Brave, a startup company, launched a coin offering to fund a new web browser which led to the successful raise of $35 million in just 30 seconds!

Amid all of these exciting developments, authorities and key financial institutions have debated the future of cryptocurrency and its place in our society. Several commentators compared cryptocurrency to a bubble in the making. Yet, there are other players who see a huge potential in “cryptocurrency once proper things are in place.”

Viable Alternative to Replace Reserve Currencies

Investment firms in South Korea, Japan, India, and even Australia discuss the possibility of Bitcoin surpassing the value of certain reserve currencies in the future as a viable alternative to replace reserve currencies. All these talks of how it can be an alternative monetary and financial system definitely warrant serious evaluation. According to ABC News, it is now possible for Bitcoin to replace reserve currencies such as the US Dollar in the next 10 years if it can sustain its current exponential growth.

Jameson Lopp, a BitGo engineer suggested that investors and traders should consider basing off the dominance index of Bitcoin on the global M1 against currencies such as USD. As the concept of Bitcoin overtakes existing government-backed currencies becomes the alternative financial network of investors, entailing Bitcoin will be on its way towards the new economy. As financial experts bring up the M1 money index into discussion about Bitcoin and its relevance, there is an obvious indicator that Bitcoin will eventually surpass the value of reserve currencies.

With the age of technology comes the new economy; the future in cryptocurrency is taking over the financial industry.

The Land of the Rising Sun Leads the Way

Japan is the country where the mainstream adoption of Bitcoin is imminent. The country’s established companies, from retailers to airlines, have accepted Bitcoin as digital currency rather than digital gold and investment. Tens of thousands of convenience stores will start to accept Bitcoin as a method of payment!

The Japanese pursue the strategy of making agreement with big, specialized companies that provide terminal services to shops. Instead of having to deal with lots of individual retailers, such strategies have increased the adoption rate of cryptocurrency. Japan advocates for Bitcoin as a long-term asset, as digital currency have been rising exponentially across the world.

Myths about Cryptocurrency

There are strong misconceptions that cryptocurrency serves a tool of crime, vice, tax evasion or fraud. Cryptocurrency in fact, is a powerful tool in battling financial crime and other related matters. Opponents of cryptocurrency believe that there would be no way to trace shady dealings and people could get away easily. Authorities and law enforcement agencies disagree that cryptocurrency can help solve financial crime.

The irony though is that cryptocurrency can generate abundant public data. Regulators can connect transactions that are publicly recorded in Bitcoin blockchain to sales on online drug markets. In fact, the steady shift toward adopting cryptocurrency by law enforcement leads to increased arrests and convictions around the world.

Evolution of Bitcoin

Most people do not realize that Bitcoin is a financial currency software. Its ability to become monetized is just a part of the big picture. Bitcoin will continue to evolve and get replaced by impressive Altcoins (alternate cryptocurrencies): Ethereum, Litecoin, Dogecoin, Dash, and Ripple. Interestingly, some people have gone as far to compare Bitcoin to rise and fall of Netscape. Netscape is known for Javascript and SSL (Secure Sockets Layer Protocol), but will eventually lose dominance to Internet Explorer. Similarly, Bitcoin has the chance of losing its crown to other viable contenders. If Bitcoin dies, there will be other Altcoins that will quickly improve upon Bitcoin’s recipe.

The entire process can be further simplified so that buying bitcoins will be a simple and easy task. Unsurprisingly, even this simple mechanism could revolutionize the whole cryptocurrency economy. What was notoriously known for its high volatility, cryptocurrency is now minimized to an acceptable degree. At the same time, arbitrage will almost be negligible. Bitcoin will most likely be welcomed with open arms in parts of the developing world where payment systems enable instantaneous person-to-person payment are not available.

There is a large population that does not have access to buying bitcoins. Yet, most of them are eager to adopt and accept bitcoins. The only thing that stands between them is the regulators. These will soon change in the coming years as regulators will examine cryptocurrency practices to provide better regulation. Large corporations started to offer Bitcoin as an alternative payment, others will soon jump into bandwagon. It is just a matter of time before Bitcoin will unleash this chain-reaction trigger that leads to its mass adoption.

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Written by Aaron Tam, editorial writer at iPrice Group. iPrice Group is operating as a one-stop shop e-commerce aggregator across seven markets in Southeast and East Asia with key feature in price comparison. It’s meta-search collates products: home and living, cosmetics, grooming, fashion and electronics, its key feature price comparison caters to electronics.

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