LOOK OUT WORLD, HERE COMES CRYPTO!
Time to move on to more basics on cryptocurrency. Today we'll talk about how it will change the world as we know it. But first, let's talk a little more basic stuff about why they call it "cryptocurrency".
Cryptocurrency is basically electronic money that is designed to be used safely and securely, and with privacy in mind because it is anonymous. It's predominately used online, and it uses cryptography in order to convert information on purchases, transfers, and balances into an impenetrable code.
It involves using computer science, math theory, and also computer languages to transfer cash, communications, and information over the internet in the most secure and unhackable way. Governments, regulatory agencies, and banks can't get in the middle of it because the transactions can be made completely anonymously. That's the big draw.
Enough of the new basics. Now let's talk about 3 areas where cryptocurrency will change the world in the very near future...
1. Money Transfers
The way banks transfer money from one to another is ridiculously archaic. It can take upwards of a week to complete a transaction. The system is old as dirt. Have you ever had an experience where you tried to "wire" money to a friend or family member? If you did, you'd know how awful the process is. Those days are about to be over.
Cryptocurrency can be sent to anyone with an electronic wallet (i.e. an app on your phone) in as little as 4 seconds. There's no more need to go stand in line at Western Union, and wait 24 hours for money transfers to clear. In fact, you don't even need a bank or other go-between to send cash to someone on the other side of the world. Crypto changes the entire ball game.
2. Anonymity & Shift of Power
The arrival of cryptocurrency has major implications when it comes to the potential shift of power from the governmental institutions and banks to the general population. It takes the power out of the hands of the traditional rulers and hands it over to the common people.
Bitcoin and other cryptocurrencies are transacted on the Blockchain. It's like an electronic ledger that lives on an independent network of computers on the world wide web. Banks and government institutions can't get in the middle of it, because they are not needed. Transacting business on the Blockchain without the IRS watching your every move just might be an attractive thing that could possibly catch on (sarcasm intended).
The banks can't squeeze their way in either, and might be obsoleted by this new process. If you count up the ways that banks charge you to have your own money, and how microscopic of a sliver they give back when you let them use your money, it doesn't leave much motivation to stay with the plan when there is a free and anonymous alternative in crypto-commerce.
3. Safe Money Transfer for Developing Countries
Smartphone use is exploding in Africa, in the most under-developed areas. Africa is a "goldmine" for technology growth, and the fact that smartphone use is becoming so common, it creates the perfect platform for tapping into the power of cryptocurrency.
Right now many people in Africa are using mobile phone credits as a medium of exchange for commerce. There are obvious disadvantages, like the time it takes to make transfers, and the hefty fees that are snatched out for each transaction. Fees can be as high as 20% per transaction. Cryptocurrency will level the playing field and revolutionize commerce in Africa, and it will provide a much safer platform for commerce as opposed to phone credits or storing cash.
The implications of cryptocurrency adoption throughout the world go far and beyond these three examples. I'll be adding to this list in future posts, and it will leave you no shadow of a doubt that cryptocurrency is here to stay. From what I have learned thus far, I'm convinced that this is not a passing fad. The advantages are far and beyond fiat currency, and each passing day we see proof that the trend towards crypto is just getting stronger and stronger. Watch the birdie!