Is Cryptocurrency The Future? Our BS-Free Answer
Back in December 2017 the query ‘is cryptocurrency the future’ has reached its peak on Google Trends. Hundreds of millions of dollars were being poured into crypto space at the time like there was no fiat tomorrow. We didn’t have to wait long for the reality check to come.
Cryptocurrency prices went down really hard. The selling season has begun, leaving herds of crypto enthusiasts with the very same question, yet asked with a flavor of a doubt. The following text is being written from a ~$200bn market cap perspective, which is approximate -75% down from its all-time height.
In a span of 7 years, Bitcoin went from few cents to almost scratching the surface of $20k. Bitcoin chart pretty much mimics the whole state of cryptocurrencies. Whether it goes up or down, the rest follows.
Cryptocurrencies ain’t perfect. In fact, more serious projects are not older than 3 years old. Crypto is still a baby that just learned how to walk. We can’t expect cryptocurrencies to replace FIAT at this stage as just like the child, they need to grow up and mature.
Maturation will be achieved through constant development, meeting the regulations and its ease of use. Developers from all over the world are working hard on this three aspect spontaneously. They are the ones whom you provide coffee and produce code for the good of all of us.
The interest in cryptocurrencies has been lost only among seasonal enthusiast. At the beginning of November 2018 Devcon4 – the Ethereum conference for devs and researches took place in Prague.
3,000 people attended while the general admission ticket costs 1,000EUR.
The tickets were definitely not cheap, but this clearly indicates, that even during the rough times of the great crypto crash of 2018 the interest for cryptocurrencies is still there among bright, young minds.
Cryptocurrencies are like a piece of steel in the hands of a blacksmith. It needs to be massively heated and then instantly cooled down from time to time in order to turn it into a perfect sword. In our case, steel represents code and blacksmith barely got his hands on it.
Aside from the code that far from perfect in each cryptocurrency, we should talk more about regulations.
Many think that cryptocurrencies are here to spark the revolution where governments and banks suddenly give up and knee before cryptocurrencies. All hail to crypto!
That’s not gonna happen.
Cryptocurrencies are here to bring our monetary system to a whole new level. Banks and governments are pretty aware of the fact that they can’t fight decentralized networks as they would have to shut down the whole internet in order to achieve that.
What you should be really asking is:
Is blockchain the future?
The blockchain technology is what stands behind cryptocurrencies and they are needed for decentralized networks to function. The latest bull run has put this tech so much in the world’s spotlight that it can’t be avoided anymore.
It will be a slow process, but blockchain is fated to be adopted piece by piece into the structures of governments and all kind of institutions. And so, cryptocurrencies will follow increasing their value as decentralized networks are being used more and more.
If you think it is too late to invest in cryptocurrencies, think again of a 3-year-old baby that has the potential of infinite life. At this moment there is no way to invest in cryptocurrencies as a whole. (Here are some good articles on the investment strategy and how much to invest in crypto).
There is Coinbase Index which covers Bitcoin, Ethereum, BCash, Litecoin, Ethereum Classic and recently 0x.
Oh, btw. we wrote about 0x and the possibility of it being added to Coinbase months before it actually happened. You can read more about 0x in our full report.
Here at London Letter we do the research for you and pick the best cryptocurrencies to invest in.
Heading back to the aspect of regulations we should keep in mind that the people who are on the very top of govs, banks etc. are old and they oppose changes. They want to keep the things as they are in order to stay in power. Objectively it is pretty much understandable.
But these people are going to die and be replaced with younger generations who understand the potential of the new technologies. This is how the world works and no one can argue with that. For all kinds of institutions facing blockchain on the horizon, it will be either adapt it or lose the battle.
How are we so certain that the cryptocurrencies and the blockchain technology itself are the future?
Here is a short reminder of what we can do thanks to blockchain already:
Being able to transfer $300,000 in DAI from Thailand to France in under a minute.
Being able to possess money that no government or bank can’t limit access to whenever you are and whoever you are. That’s why they are also so afraid of this technology!
Need a real-life example? Take a look at the current state of Greece. The country is so deep in crisis that the banks had to limit the daily withdraw of cash from ATMs.
Bank account holders in Greece, can as of Monday (June 4) withdraw a total of 5,000 euros from 2,300 euros per month from ATM machines and banks, according to a finance ministry decision published in the Government Gazette. 
Imagine working all your life, saving money and your government does that to you because of their own fault! That’s nuts.
With currencies, you can hold any amount of money in Bitcoin or a stablecoin and you can do whatever you want with it.
And that’s just what a 10-year-old bitcoin has to offer.
We should not forget what a barely 4-year-old Ethereum has to offer. It takes the term of programmable money beyond allowing to tokenize literally everything. Be it real estate, a company share or a contract. These assets can be brought into the digital world.
Imagine you could buy a piece of a hotel in Thailand in form of token for only $500 and receive dividends from hotel’s profits. What about becoming a shareholder of one of the DaVinci’s art?
These and much more scenarios are theoretically possible, but reality brings us down as currently, the legal side is not ready for such things performed on the blockchain. Regulators are still figuring out how to tax our crypto gains not to mention such things as shredded ownership of a hotel somewhere in Asia.
As more people realize the full potential blockchain technology has to offer, legit and useful cryptocurrencies will spread like a virus. It will take many years ahead to get the swords polished by the blacksmiths but once they are ready the masses will come.
The ease of use is the last of the three aforementioned aspects that need to be improved. That is the widest gap that needs to be filled between crypto and ordinary people. In order for your neighbor Joe to get himself involved in crypto, the user experience must be seamless.
Remember buying your first crypto? It ain’t easy.
Coinbase has made the most user-friendly interface to purchase crypto instantly with a credit card and today there are evaluated at around $8bn. And that’s only for a service to buy crypto with fiat.
There is a race among developers from all over the world to be the first Uber or PayPal in the crypto space. That’s good, as the race fuels the development of the blockchain technology as a whole. In the upcoming years, we can expect a waterfall of new companies and interesting projects on the horizon.
These herds of nerds can’t be stopped.
You can either join their journey by buying a piece of their project in form of cryptocurrency or you can step aside and watch their companies make it to Inc 500 without you.
Decentralized networks which are fueled by cryptocurrencies cannot be stopped. No one has the turn-off button. The people who develop that technology and built upon it can’t be stopped either from making it to the top of the Forbes and reshaping the existing monetary systems and beyond.
It will take years if not decades for our society to educate about blockchain and cryptocurrencies.
As with every invention, there are people who will oppose change for whatever reason. Aside from people who are in control, there are ordinary people who will laugh at some virtual money. But hey, don’t we already use this virtual USD currency found behind the pixels?
Cryptocurrencies are here to stay without a doubt and it is not a matter of ‘if’ but ‘when’ as we need more time to fully grasp the possibilities this technology brings and more people to realize that it’s worth it.
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