Real Issues in Cryptocurrencies
Brief History of Coins Driven Economy
While barter system (before coins were introduced) was perfect on many grounds, it was rigid and limited, it forced us to have a transaction only when both parties had what other didn’t have but wanted it. There is more to this but in nutshell coins (currency) became a great engine to fill the gaps in the barter system — giving birth to a much flexible economy.
Currencies, however also gave rise to an issue. Currencies were essentially a printed resource. There are regulations around printing currencies, however it is always subjective and at the mercy of the “expert”, there are also various forms of pressure from stakeholders and not more than often the resources are exploited and more currencies are printed, giving rise to a never ending Inflation — in which few benefit but society as a whole loose.
- That there will be a logical cap to the bitcoin which forced it to become a finite resource like Gold and can be safely traded.
- That it can be rapidly transferred irrespective of locations or countries and with no extra fee that we are forced to pay to the Banks.
- That this is the new way the countries that are drowning in inflation can fight back and get a stable economy running again.
Entire cryptocurrency market has erupted on the ground that it is finite like Gold and its logic controls the number of coins that will ever circulate in the eco-system. Let's see if that is true.
- That there is a logical cap - which is not there because of infinite division a coin can go into.
- and for the fact that there are multiple cryptocurrencies in the market.
The architecture it is built on is not energy friendly.
An entire underground market can flourish with the help of the virtual Coins. Even with cash this can happen, but cryptocurrency specially made for such purposes makes it a lot more easier to operate and harder to trace.