The year 2017 gave us a taste of what the next paradigm shift in technology and finance would be. After the revolution brought on by the applications of the internet and mobile technology, blockchain technology is slated to be the next concept to rewrite the rules of tech-evolution.
Cryptocurrency modules like Ethereum and Bitcoin have been on an upward surge with investments pouring in from all corners of the globe. Top business experts from various industrial sectors have been closely following the Bitcoin revolution along with its contemporaries like Ethereum. There’s a great deal of speculation about how traditional markets will respond to the pressure that is being put on by the cryptocurrency trend.
Cryptocurrencies are now way beyond a trending concept. It’s something that is poised to do a complete reset across business verticals and change the way we manage our lives.
The number of people investing in cryptocurrencies is growing with every passing day, with key global investors choosing it over traditional stock and financial systems. The decentralized currency system certainly provides an alluring promise of quick and convenient risk-free global financial transactions, something that traditional banking systems are far behind in achieving right now.
Ethereum certainly looks on its way towards causing a revolution in legal, asset exchange, and finance sectors. With several cryptocurrencies coming into the mainstream, the scenario of banks adopting blockchain technology doesn’t seem far fetched any more.
Though an out-and-out doomsday scenario for traditional banks and financial systems may not be imminent, it’s fair to say that major changes can be expected in how investors prioritize their investments for cryptocurrencies in the coming years.
Though traditional large corporate and financial institutions have been publicly dismissing cryptocurrencies as a “flash in the pan” concept that has no reliability quotient, the fact that a significant portion of their users have adopted cryptocurrencies has been causing a great deal of concern for them. In the present setting, their only option seems to be to adopt a “wait and watch” strategy.
Cryptocurrency offers a wide range of benefits over the traditional financial systems
1. Unparalleled Protection – If you look at the sheer magnitude in numbers of bank fraud, theft, and online financial crimes being committed on a daily basis, you can never really rest assured that your hard earned money is safe. In the present scenario, cryptocurrency systems provide the best possible security for your cash holdings. It’s practically impossible for anyone to steal unless you enable them to!
2. No-Middleman Business – With traditional transactions through existing financial systems, it’s always the middlemen, brokers and banks, who get away with a good chunk of the change, eating into profit and efficiency. With cryptocurrency in the equation, there is no room for middlemen. This works out particularly well for sectors such as real estate where high volume transactions are the norm. Cryptocurrency facilitates access to an extensive property rights database, which in turn enables you to implement a contract that involves just two parties – the buyer and the seller.
3. Always in Control – In the traditional system, you are constantly at the mercy of banks, brokerage houses, or credit unions for accessing the money that you entrusted them with. You enter into a contract with these institutions that essentially enables them to prevent you from accessing your own funds if they deem so. It could be a scenario where they assume the terms have been violated or a fraud has been committed.
They have the liberty to change their terms of service whenever they please, which could result in you having to pay them more money or being subjected to restrictions that you never signed up for. With cryptocurrency, you hold complete control of your funds at any given point in time and are free to transfer or receive funds from anywhere in the world without any interference from a third party.
4. One Global Currency (Zero Hassles) – If you have a business that takes you around the world, you need to conduct financial transactions through the traditional currency system. Factors involved include currency exchange rates that keep fluctuating, charges associated with overseas payments and collections, and much more.
Not to mention the delays and bank approvals that go into a transaction. When you carry out transactions with Bitcoin or any other cryptocurrencies, this is completely a non-issue. You have a universal value across the globe that does not fluctuate at any point. This makes overseas transactions amazingly quick and ridiculously easy.
Cryptocurrencies hold great promise going ahead and in 2018, the trend is most likely to spread out into a green revolution of sorts. You can expect a proliferation of new green cryptocurrencies designed based on blockchain-powered worldwide datasets for the life cycle data to execute environmental-related transactions.
Another effect of evolving cryptocurrencies is a possible solution for “rebound effect.” This is essentially the phenomenon through which the environmental benefits that are achieved through our careful and planned actions get nullified by negative behavioral patterns. For instance, we save electricity by installing energy-efficient appliances, but then blow it up by keeping on the air conditioning extensively.
An effective counter for this kind of behavior could be provided by providing incentives to consumers in the form of green cryptocurrencies for saving resources. These rewards could be exchanged as a means of payment for green electricity, charging your electric car or any other environmental service that could be verified by a blockchain-powered database.
This is just the tip of the iceberg as far as how cryptocurrencies are going to impact our lives and environment. The key factor to note is the amount of time cryptocurrencies will take to be accepted as a mainstream currency solution and consequently blockchain-powered technology and related applications to be integrated into every facet of our everyday lives.
Mohit Tater is the founder and CEO of BlackBook Investments through which he helps people invest in online businesses and digital assets. Apart from advising clients on SEO and marketing he also blogs at mohittater.com.