Bitcoin startups have raised over $343 million in the first half of 2017 and more than $2.2 billion from all sorts of investors. Cryptocurrencies evolved so much that they now pose a threat to centralized control systems such as banks, payment systems, law firms, insurance companies, and governments. With now more than a thousand new cryptocurrencies, they are here to stay. With Bitcoin at value over six and a half thousand USD dollars, early users earned millions.
Big businesses drive innovation. And the newest is that blockchains are now the middleman used to execute complex business deals, agreements, and automated data exchange. IBM and Microsoft are using this technology for customers, and researchers are exploring it for projects that include various fields, from digital identity to insurance and medical records. Even more startups businesses are using this, from global payments to tracking diamond sales. The potential is vast because you can put anything on a block in a blockchain.
Ignoring is loosing
The threat that this kind of currencies poses for traditional financial systems, central banks, and governments is the fact that cryptocurrencies undermine authority, and decentralize the system. It surpasses banking process and all the third parties. So it seems counterproductive ignoring this technology and all that it promises. Instead of ignoring it, or not knowing how to act, governments should be adapting for the benefit of humanity, and evolve.
There are so many countries that are still not taking seriously this new modern world we are living in. They are averse to using even some of the elements blockchain technology has to offer. The real threat is this – if they continue to fail in understanding cutting-edge technologies, and they start putting rules and boundaries, they will lose. Not only that they will be one step behind, but they will also lose control over the money supply.
Instead of trying to regulate this almost ten-year-old world of virtual currencies, central banks are just warning of its risks. In the meanwhile, they are trying to get some advantages from a blockchain technology, or distributed-ledger system as it is called, for their payments systems.
Cryptocurrencies are still growing and developing, but yet central banks doubt the overall stability, value, and privacy of digital money. It is almost ten years since Bitcoin was created and now there are over a thousand new cryptocurrencies. And it is still developing. The government will be forced at some point to draw clear policies about the use of blockchain and cryptocurrencies. The doubting period should be over. In Japan, Bitcoin is a legal method of payment. This is a technology from which global economy could benefit.
This unregulated currency is used to store wealth, and it can do it for very long periods of time, with its price now six times larger than a year before. And it has the promise of being more reliable and faster than the current currencies, banks, and governments. And the greatest thing is that it is unregulated by government institutions.