Money is a tool that has been at the center for human progress. As we build bigger and tackle complex problems we will be needing the best tools available. Cryptocurrency is taking the world by storm. Many say this is the future of finance and money. In this digital world, cryptocurrency will allow anyone in the world to access financial services online. Cryptocurrencies are digital tokens that lets you purchase goods and services or trade them in exchange of a profit.
What is a currency?
What currency does is that it allows us to agree upon the value of something. It’s very familiar to a communication tool. It’s a tool that coordinates people. We want to make sure that people can move money freely. Our current financial system doesn’t enable that. The current system is very centralized. We have big banks and Governments. There is a lot of middlemen who make things inefficient. What is powerful with cryptocurrencies is that it lets anyone with just a smartphone with Internet connection participate in the global economy.
What are the benefits cryptocurrency and block chain?
- If you have money you can just hand it to somebody else. There’s no middle man like a bank or a credit card company.
- When we talk about the concepts of decentralization, this means that we avoid the possibility of Single Point of failure. If you have a single bank and that banks have all your money, when this bank fails, everyone is affected. Whereas if you have lots of different notes, hard drive, phones and so on that have some money, not all will probably fail at the same time.
- You no longer need the middleman to keep track of an internal ledger since the computers are writing everything down for you.
- The network effect makes it unbreakable.
- This technology would make us richer because of the lesser time and effort to get something done.