Why Cryptocurrency?The craze for cryptocurrency can be explained by a host of factors: the opportunity to get rich quick; the criminal society living off the grid and performing near-anonymous transactions; But more importantly it gives us, ordinary folk, the chance to get one over on the banks! Right!?
Despite Blockchain cryptocurrencies’ wild volatility to date, we would still argue that the more underlying attraction is to be a reliable store of value. Cryptocurrency investors may not recognise their motivation as such, but the impulse behind computer-generated currency is to take the production and control of money away from government.
Call it a conspiracy theory, or what you will, banks have a lot to answer for with their control over economies that goes back centuries to the days of the Italian city states and Renaissance. More recently, the Rothschilds made their first huge "market killing" during the Napoleonic era. This ushered in the modern age of Big Banking and ever since we have been wondering what Banks are doing with our hard earned cash.
Now that we live in a world of 100 % fiat currencies that are backed by nothing, the Central Banks can print their hearts out... and they do. The rounds of quantitative easing since 2008 are essentially money-printing on steroids. London and New York property markets, fine art, collectibles, equities, and Bitcoin are all asset bubbles, which are hitting or recently hit historic highs and are all evidence of financial bloating.
There’s too much fiat money in the world right now, spilling over from investment to investment and bloating every currency escape plan one can think of to stash with capital. As a result, a phenomenal proportion of this money is founded on debt, because it costs central banks nothing to turn on their printers and print till the cows come home.
What makes cryptocurrency extraordinary (i.e., Bitcoin) is that it is limited in quantity, thus functioning more like precious commodities. Producing a single Bitcoin takes a massive amount of energy much to the dismay of many environmentalists. Therefore, every Bitcoin mined requires more computing power than the one before, meaning that the total coinage in circulation quickly approaches an absolute mathematical limitation.
Contrast that with the fiat currencies. Even primary schoolchildren can grasp that keeping your capital in cash in a bank is a fool’s game. For years central banks have cheerfully informed us that they aim for an inflation rate of 2%. Taking into consideration that the consumer Price Index in UK is around 3% meaning your cash will be worth half again in just 25 years.
The public has grown bored and wise to the notion that a functional economy mysteriously requires their currency to rot like eggs. This is where even ordinary working people are ‘wising up’ to the notion that something is not quite right with the way governments are managing economies.
One British pound in 1797 was worth about exactly the same amount in 1914 meandering up and down a bit, but averaging zero inflation whatsoever for 117 years. The Industrial Revolution would be regarded as economically functional. When we look at the big picture, the pound took 164 years between 1750 and 1914 to roughly halve in value. Yet in the century since the First World War the British pound has plunged to be worth about a penny.
The ‘almighty dollar’ has fared similarly. One dollar today is worth one cent of a century ago. Traditionally the primary purpose of a currency is to act as a store of value, modern currencies are no longer intended to do so. The dollar retains its coveted status only because other currencies are corrupting even faster. Every other country is also playing the printing-press game, competing over whose money is the more worthless.
In recent memory we’ve seen an explosion of interest in Blockchain, cryptocurrencies, ICOs, bitcoin and Ethereum like never before and a slew of banks and countries have proposed Blockchain payment solutions and cryptocurrencies.
While we are still trying to grasp the reach of Blockchain in many industries, the impact upon the future is becoming clear, it’s a technology that belongs with the group of technologies known as Exponential which belong to the 4th industrial revolution.
With the rise of ICOs and the movement of Banks to own Blockchain on their own terms, there are a lot of mixed messages. Banks are cautious on Bitcoin, going as far to call cryptocurrencies a "speculative bubble". These are typically the same financial institutions that are trying to capitalize on their own Blockchain payment systems.
J.P. Morgan CEO Jamie Dimon, was famously quoted in the fall of 2017, saying that cryptocurrency is "a fraud" and that he would fire any employee trading bitcoin for being "stupid". However other financial establishments are much more positive about Blockchain tech itself.
Blockchain isn’t just about added security, shared memory, and improved speed and efficiency, it’s about trust. Blockchain thus can and should be used to create technologies that increase trust with institutions. That’s why concepts like decentralized are so impressive and salient to millions of people (especially young people) around the world. Many of us feel we’ve outgrown the centralized power of banks, government and even corporations on our lives.
Imagine a secure international cryptocurrency whose steady value was not subjected to deliberate, systematic decay, whose supply was strictly limited, whose coin was universally accepted, and whose production was beyond the control of the state. Even if the investment couldn’t be expected to appreciate in the slightest, makes it more palatable, and as it stands seems to be putting the power back to the people.
Don’t get us wrong… a rebellion against banking, central banks, and centralized government authority is not something that we espouse. Business is built on law and order and the smooth and efficient facilitation of financial transactions. Therefore Bank’s are a necessary part of society, but in today’s environment, particularly Big Banking, they do little to alleviate the pain and suffering of people living on the margins, make worse various societal aspects, and are frequently used as another weapon of geopolitics (i.e., Zambia/China, sanctions etc.). And it's these banking issues where we want to influence change.
With the world moving closer and closer to technology, the ability to make financial decisions in real time will become a standard, and one such phone app is making the future possible today. Winstantpay is a phone app that gives you full control of Cryptos, Blockchain, fiat and commodities instantly on your phone 24/7 bringing the power to you wherever you are. Sign up for a free account today.
Find out more about WinstantPay here and how it blends traditional banking with Fintech.
WinstantPay is a global payment network providing merchants and individuals a reasonably priced global final payment in an instant, in any currency, anywhere, anytime, with integrated anti-money laundering (AML) compliance that reduces time, costs, risks associated with payments. Serving financial institutions of all sizes for the last 18 years with financial services, software development, and business support, WinstantPay is also a founding member of WorldKYC-AML. For more information on how WinstantPay can deliver cutting edge business, visit our website and follow us on Linkedin, Medium, Twitter, Facebook, Medium, and Github.