Cryptocurrency Is Here To Stay: What It Could Mean For The Future

Cryptocurrency Is Here To Stay: What It Could Mean For The Future

The word cryptocurrency likely sends a shiver going down your spine. You’ve heard so much about it, and very little of it is good. You’ve probably heard it mentioned as a scam; a Ponzi scheme designed to cheat the hard working out of their money with promises of a return on their investment that will never come. Or perhaps you’ve heard it compared to an ever expanding bubble that has dipped and soared over the past few years and now seems set to burst completely. Maybe you’ve even heard of it as a means by which criminals can trade in all manner of unsavory and illicit dealings on the dark web. It’s in our nature to be critical of what we don’t understand and while this impulse is understandable, and even admirable, it can lead us to cut off our proverbial noses to spite our (equally proverbial) faces. Cryptocurrencies began with Bitcoin in 2009 and have since grown in number, popularity and diversity of use. Needless to say, many have been skeptical and dismissive of Bitcoin, decrying it as a bubble that’s set to burst at any moment.

Cryptocurrency Is Here To Stay: What It Could Mean For The Future

While they certainly have their detractors, as long as people continue to trade them, cryptocurrencies will continue to have value. As long as people continue to trade in these decentralized digital currencies they will continue to have a value that’s not dictated by the economic stability of any one country or the fiscal success of any private company but by the economic staples like scarcity, utility, supply and demand. That means that cryptocurrency is here to stay. And this means that their use will only ever become more widespread and its uses will only ever become more diverse. Here, we’ll look at just a few of the ways in which the use of cryptocurrencies, and their parent technology blockchain, could help to transform your future (for the better). But before we can do this, we need to put paid to some of the fundamental misconceptions about cryptocurrencies which continue to blind people to their many benefits.

Slaying The Dragons Of Ignorance To Reach The Pot Of Gold

Since their inception a great many persistent myths have arisen around blockchain technologies and cryptocurrencies, many of them unflattering. Unsurprisingly, many of the biggest naysayers have been those in the financial services industry whose livelihoods and bloated salaries would be most adversely affected by a decentralized currency which could cause them to seriously reform their practices. The banks are threatened by cryptocurrency and this alone should give you pause for thought. If cryptocurrency were just the fad that it’s so often dismissed as, would the banks really be trying quite so hard to discredit it?

Take, for example the social media smear campaign instigated by Poland’s National Bank,Narodowy Bank Polski sponsored a video in which a young man is depicted investing in cryptocurrency and losing all of his money (with socially embarrassing consequences) as a result. Many have tried to discredit cryptocurrencies by associating them with the criminal element. Others have tried to insinuate that cryptocurrency is a mere flash in the pan that will shortly lose its novelty value and soon after its inherent value. But in an era where major players like Microsoft, eBay, Expedia and even McDonald’s and Subway now accept Bitcoins as a form of remuneration, we can’t really take this scaremongering too seriously.

Cryptocurrencies are too diverse to be dismissed out of hand. There are a multitude out there, each with its own inherent advantages. Check out this article on whether you should opt for Stellar or Ripple for just one example. Their use is too varied and widespread for them to simply fade away because people have gotten bored of them. The fact is that cryptocurrencies represent a threat to the status quo and as such are unfairly derided. Blockchain based cryptocurrencies are not owned by anyone. They represent a peer to peer sharing network and why this may understandably make the financial services sector nervous, they have the potential to help you to create a brighter future in the following ways…

Saving For Retirement

In an increasingly capricious economy, retirement is looking like an increasingly untenable prospect, especially for a generation of millennials working in the gig economy bereft of employee benefits like sick pay, paid vacations and a competitive 401(k) which were taken for granted by previous generations. Even those lucky enough to have a 401(k) provided by their employers have come to the realization that an IRA is also needed to help save for a comfortable retirement. Over the past few years have seen an increase in IRAs that use Bitcoin to potentially provide greater growth. Check out this Bitcoin IRA review for more information. The value of cryptocurrency could not only provide greater gains than saving in your native fiat currency, there are also potential tax advantages. Unlike investing in stocks, the value of cryptocurrency does not suffer from fluctuations created by the changing fates of businesses. The value of cryptocurrencies is not lowered by changes of leadership, scandals or whistle blowing. Plus, as cryptocurrency are taxed at a similar rate as property and precious metals rather than fiat currency the tax advantages speak for themselves.

Cryptocurrency Is Here To Stay: What It Could Mean For The Future

Democratizing The Sharing Economy

We often hear the sharing economy used in conjunction with Uber, Lyft or AirBnB. It’s a nice term that makes it sound like these intermediary companies are working towards a fairer economy by brokering between those who have an asset worth sharing (a property, a vehicle etc.) and those who have need of that asset. But the truth is that these companies represent nothing more than a slightly different (and potentially more insidious) form of capitalism. These companies have eliminated competition by under cutting them and scooped up the majority of the profits for themselves.

Blockchain technology could potentially democratize the sharing economy by enabling goods and services to be exchanged without the need for an intermediary to syphon away a chunk of the profits. This makes for a better deal for the service provider, the customer and the economy as a whole.

Everyday Purchases

Investing in cryptocurrencies now is an especially prudent idea since more and more reputable and trusted businesses are starting to accept it as remuneration for their goods. We’ve already discussed how even the likes of McDonalds and Subway are beginning to accept Bitcoin. As other businesses like Amazon or Starbucks follow suit, we will likely see more people using cryptocurrencies to pay for life’s essentials. As such, the different cryptocurrencies will race to add value in making themselves safer, more secure and more desirable to investors. This could see you get more with your cryptocurrency than you would using fiat currency to pay for life’s essentials.

Buying And Selling On Online Auctions

eBay has already begun to allow trading in Bitcoin, but why would trading in cryptocurrencies be more advantageous for you than trading in fiat currencies using a digital intermediary like Paypal? Well, first of all, your cryptocurrency may be of a higher intrinsic value than your dollars and cents, meaning that if the value of your cryptocurrency at the time of trading eclipses the value it held when you first came by it, you’ve essentially bought more for less. Moreover, a cryptocurrency wallet has one big advantage over a Paypal wallet… You actually own it. As per Paypal’s terms of use, they reserve the right to freeze any assets held within it if they suspect wrongdoing on your account. This can lead to considerable assets held in stasis by the company while you jump through the necessary hoops for them to free it back up again.

Starting A Business

In an era of corporate wage suppression and career stagnation, starting your own business could be the perfect way to revitalize your career and take your financial future into your own hands. And cryptocurrencies could help to make raising the necessary startup funds much easier. In the post-financial crisis economy, we all know that banks are getting more and more prohibitive when it comes to granting necessary business loans and this economic reality has given rise to the use of crowdfunding platforms to fund business endeavors. And as more crowdfunding platforms are turning to cryptocurrency to allow entrepreneurs to achieve their dreams, you could see more generous and widespread investment than you might soliciting fiat currency.

Making Business More Ethical

In an uncertain future, where profit seems to increasingly come before people, we all want to help ensure that our children grow up in a fairer and more ethical world. We don’t want our children to grow up giving their money to unscrupulous businesses that use equally unscrupulous practices like third world slave labor. While many characterize cryptocurrencies as an unaccountable no man’s land where anything goes, the truth is quite the reverse. Cryptocurrency transactions offer complete transparency and can be traced back to their point of origin. This could potentially make businesses more accountable and transparent leading to more ethical operations.

Who knows what more uses for cryptocurrency the future may bring?

*The preceding is a collaborative post.

About Dawn McAlexander

Dawn is a full time travel and lifestyle blogger. Besides Cheap Is The New Classy, she also owns and writes for EatPlayRock.com, an entertainment site. Her interests include traveling, home decor, DIY projects, organizing her home and enjoying a nice cup of coffee {or two}. She currently resides in North Carolina with her dog, Daisy.