I know many people who don't understand what cryptocurrencies are for. I don't find this situation strange. Even though I spend 60 hours a week, I don't quite get the gist of the issue either. We know we can make money from crypto if we approach it wisely. However, we need to go beyond that.
I can understand that blockchains solve the trust problem. Thanks to distributed ledger technology, the parties can collaborate without a central authority.
My acquaintances, who state that they do not understand what crypto is, also ask me the question of who is behind the coins. All kinds of political movements have come to power in different countries so far. But there was no country ruled by anarchism. The main factor that makes cryptocurrencies incomprehensible is their anarchist essence.
The fact that there is no obligation to obtain permission from any central authority increases the innovation capacity of crypto ecosystems. Central authorities have now become the main obstacle to development at the level of development reached by the economy. This is particularly evident in financial matters. Strict regulation of the crypto ecosystem would mean condemning them to death.
By the way, I do not assume that states have absolute power over crypto. Due to their decentralized nature, it is almost impossible to stop the functioning of crypto networks. The only thing states can do is to make it difficult to enter and exit funds into the system.
One factor that keeps the crypto train moving is the international nature of these structures. In this way, crypto networks can easily access cheap and qualified workforce in developing countries. It is also a significant advantage to appeal to investors from all over the world.
Crypto networks democratize the money supply, enabling micro-economies. Thus, the price mechanism, which forms the basis of the liberal economy, is used more effectively. This way, micro-projects can be funded and constantly evaluated according to supply and demand.
The fact that cryptocurrencies are programmable makes a significant difference. Crypto infrastructures pave the way for detailed financial setups' easy and reliable implementation. This way, we can know at what level the Bitcoin emission will be in 10 years.
While open-source software is not unique to crypto, it plays an essential role in its development. Open source code ensures that the value generated by that code is rapidly consumed widely. Also, in this way, various pieces of code can come together like Lego blocks to create much more advanced structures.
Although it is difficult to grasp in all aspects, it is not difficult to predict that the future economy will depend on crypto ecosystems.
The value of crypto assets has been declining for a while due to the macroeconomic difficulties experienced worldwide. Price predictions of cryptocurrencies have also become more conservative. However, nothing significant has changed compared to last fall.
Most of the rich of the future will come from those who understand the change and take the correct position.
Thank you for reading.
Posted Using LeoFinance Beta