Why do we need Cryptocurrency?

why do we need cryptocurrency
Evolution of Cryptocurrency & why do we need it?

Blockchain

Why do we need Cryptocurrency?

No matter what area of life, Evolution is Inevitable”. According to the World Bank over 40% of the adults population and more than 2 billion people worldwide are outside the banking system today, limiting many to a state of poverty and discouragement. This is a major problem in the world today however challenging times are also the most powerful times as they make us creative searching for newer and better solutions.

The current banking system was developed over 60 years ago but new born ideas and innovative technology has opened the door to a financial evolution that holds the power to transform our entire world.

The money we used today is called fiat currency, the term came out of the idea that a claim check or a dollar is backed up by gold. This changed in the seventies when the US government canceled the direct convertibility of the US dollar to gold, no fiat currency has ever retained its value over time and the principle is easy, every time the central bank prints more currency, the currency we have in our pockets losses its value and is called inflation.

After years of inflation over loaned markets and irresponsible unregulated financial management the consequences were huge and finally led to the financial crisis of 2008, the crisis that was also the beginning of a great financial revolution “Cryptocurrency was born”.

The idea of cryptocurrency was to create a new currency that was free from inflation and based on the same principles as gold, where supply and demand is creating the value, an idea based on the perks of technological advancement that could provide us much faster, cheaper and more secure transactions. Since then a lot has happened and around a decade later cryptocurrency has started to impact our entire world.

Read More: What is Blockchain Technology?

It’s legally seen as a commodity in the United States while in the European Union it’s classified as an asset. Today all major banks have realized the impact this type of currency will have on our monetary system and banks around the world are now looking for innovative ways to implement cryptocurrency and the underlying technology the blockchain in the existing banking system.

Cryptocurrency is still a new concept to a lot of people but the innovation is becoming an accepted new form of money – just in a digital form, however it is the underlying technology the blockchain that holds the power to transform not only our monetary system but the whole way we operate in society today, not many people believed in the Internet 30 years ago, today around 40% of the world’s population is connected to the World Wide Web, in 1995 it was less than 1%, what made the Internet so successful was that it was open for anyone and we could start sending information instantaneously worldwide, the blockchain on the other hand is the Internet of value and it gives us the ability to transmit not information but value in the blink of an eye worldwide.

The Internet is a communications protocol while the blockchain is a protocol for value exchange, the blockchain technology – the foundation of cryptocurrency is right now being implemented in most areas of society the stock market, in sales records, in contract processing and of course within the financial sector of payments and transactions to name a few examples. The New Era our finances that you are about to discover is the second generation of Internet and the blockchain, cryptocurrency the future of payments is about to revolutionize the economy as we know it today.

Read More: Why the Blockchain is such a Revolutionary Technology?

Bitcoin had an incredible increase of value from 2009 till the end of 2013 – the price of a single Bitcoin went from 0.1 US dollars to over 1,100 US dollars and many people worldwide made a fortune. At the same time many missed out on the opportunity because they lacked information but also the skepticism cryptocurrency initially was looked upon with. The pioneers soon showed that there was plenty of room for improvement in the future and with the development of new cryptocurrencies it has opened the door for a much safer and friendlier cryptocurrency.

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I am a Sr. Android App & Web Developer having 5 plus years of extensive hands-on experience in Object Oriented Programming, Database Design and Implementation using Agile & UML. Pro in Yii2 PHP Framework, Android App Development, MYSQL & a Blockchain enthusiast.

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