While blockchain might be one of the most innovative and propelling technologies for data so far for the 21st century, the thing it upholds is way more important. The creation of cryptocurrency, Bitcoin specifically, stands to topple some of the worlds most powerful financial systems, standards of trade, and offer a new currency for reserving. Therefore, cryptocurrency will impact the world more than blockchain, but let’s still discuss what both of them can do.
Nothing should be considered investment or financial advice. Enjoy the ride.
Crypto or Blockchain
While it is not a fight between the two techs, it is interesting to think about which one will offer the world more innovation. There is a strong case for both long-term, but the fact is they are actually combating different industries.
Blockchain Industry Disruption
For instance, blockchain’s main purpose is to store immutable, verifiable data that can be retrieved and protected if needed. This means there are specific industries like healthcare, insurance, and AI that blockchain will eventually be disrupting. Over time, these industries will slowly realize the potential for housing and storing data across networks of nodes while also protecting the authenticity of the data from being tampered or destroyed. For instance, if political campaigns were run through a public ledger system or if government funding was run similarly, there would be less fraud. This leads to more accountability, bringing trust back into the political spectrum.
Blockchain could start to restore trust in all of humanity, but humanity is the issue in the first place. The issue more precisely is that humans can not be trusted. Someone will eventually try to gain the system as history has shown.
That is where cryptocurrency comes into play. While blockchain could help keep things trust worthy and impact industries through data solutions, decentralized cryptocurrencies can remove the human side of banking and disrupt the entire financial industry. That is because every single transaction is recorded on the public ledger and authenticated through a random process called proof of work which makes the banks obsolete. The peer to peer network utilizes blockchain so that transactions can not be removed, denied, or controlled which also means no more need for certain audits and protocols for authentication. The proof is in the transactions already.
Crypto will also make the distribution of wealth fair. It keeps any one person or nation from solely controlling the currency. In particular, the additional printing of money is a huge problem as the governments pour hundreds of millions and even billions back into markets almost every other day in some cases. Whether this is for a bailouts or for funding a project, the problem is greed and inflation. The ability to just create wealth ends up causing the wealth everyone else has to devalue. Cryptocurrency solves the human condition of greed which pushing a new age of financial services and solutions.
This takes me back to the title, which means Satoshi was right. You see, Bitcoin is doing much more than just offering people a new form of money. At its very infancy only a few years into it’s existence, Bitcoin was already changing the landscape for women in the middle east that were not allowed to own bank accounts. These woman would use Bitcoin wallets in order to hold some monetary value to their name and purchase items online.
Likewise, Bitcoin is offering countries a solution to the power the U.S dollar has over the world economy. While the U.S tries to support the world economy, the ability to harm another nations by sanctions or freezing their USD reserves in international accounts, lends to the fact that they have control over the currency around the world. Sadly, the U.S continues to create USD whenever they please inflating the supply and leading to constant devaluation of its currency. Effectively this hurts the entire world’s reserves as well over time.
The true solution to the greed, banking pandemic, and future machine to machine payments is Crypto. The future is coming quickly, and the world needs to adopt a more seamless and efficient form of exchange, crypto.