It was my senior year of senior high school and something of our teachers called us in an area full of new computers. We were instructed to sit back and “surf the web.”
“Browse the net?” What did that even mean? At that time I did so not live anywhere close to the beach and couldn’t really understand this concept of web surfing. It was clunky and pages were slow to load. There was no way that this would be useful. I went back to the library later that day during study hall and read the newspaper. You know, the ones you see in hotel lobbies and occasionally outside of restaurants.
All kidding aside, when people are used to doing something a particular way for so long it truly becomes part of who they are. I’ve operations management experience and each time I attempted to change the procedure or way of doing something to create it more efficient I was typically met with resistance.
Some people are more married to certain ideologies than others. We see it everywhere. I see it with the older generation at church not liking the newer music. Or, for instance, the National League baseball purists despising the thought of the designated hitter. Think about even simple things like when Facebook or Twitter changes the user interface? Don’t mess with my timeline! LOL.
Why then should it be any different for Krypto Bitcoin or any cryptocurrency? I talk to people every day who are educated and successful and yet still can’t wrap their heads around cryptocurrency. If you ask me it is like explaining how to browse the net to people in 1994.
For centuries people have had it ingrained in their brains that money issued by the government meant it had value.
Fiat currency (money issued by a government – USD, Euro, Ruble, etc) has this connotation behind it that as the government printed this it Should be of value. While it is true our dollars have value, most people think it is because it is backed by something. As a society we’ve decided that shiny minerals we find out from the bottom are “valuable” and for that reason so is our money.
When economies are humming along and governments aren’t overbearing and folks have a relative “trust” in them then yes, fiat currency works quite nicely. What happens whenever we tip that scale and things don’t go so well? Economists have varying opinions on that, but most of the time governing bodies will step in and make an effort to stimulate the economy. That is done by manipulating the economy via tactics such as for example lowering interest rates or quantitative easing. Governments love to turn on the printing press when things go bad.
These types of scenarios can cause distrust, or far worse. Recessions can change into even bigger problems such as for example price controls or food shortages. Just ask individuals of Venezuela who are protesting in the streets on a regular basis. This is due to their government backed Bolivar now has seen triple digit inflation and it’s not worth the paper it’s printed on. Let that sink in.
The distrust of centralized banks, governments and corporations has resulted in people seeking financial refuge elsewhere. It could be incredibly difficult and costly to go money around the world as well. I used to manage banks and the procedure was tedious and required many eyeballs onto it for verification purposes.
Blockchain technology is changing all that. It really is completely decentralized meaning that no-one President, Dictator, government or corporation can control it. The online digital accounting ledger known as the blockchain maintains trust and multiple persons nearly instantly verifying transactions for every other. Folks are financially incentivised to do so. It is a genius peer to peer operation that relies on people’s greed to verify each transaction. Due to this, blockchain transactions are also the safest & most secure transactions ever invented.
What the internet did for information, blockchain technology does for transactions. Bitcoin is not backed by any shiny material in the bottom, but by something far greater. The lack of rely upon traditional fiat currency is causing people from all over the world to go their money into cryptocurrencies. This can be a secure and relatively easy approach to payment. I could send Bitcoin to anyone on earth for almost no fee at all and they receive it instantaneously. They can keep it in Bitcoin or they can instantly trade it on an exchange back into the local currency of their choice.
Not just that, but merchants around the world are starting to take notice and many are now accepting Bitcoin as a method of payment themselves. EASILY owned a store, I would be BEGGING visitors to pay me in Bitcoin. Those who accepted Bitcoin because the start of 2017 have now TRIPLED their profit.
And it is only getting started. Right now only about 1% of the populace is confident in conducting regular transactions with Bitcoin. Imagine when that number moves to 3%. Then to 10%.
What many people don’t realize is that the more folks that jump into cryptocurrency the more value it will have. This is because the volume of Bitcoin that may ever be created is FINITE. And you also can’t have a Ponzi scheme with a finite resource. That number is actually 21,000,000. That’s it. Once that occurs there will never be another Bitcoin created again.