What’s the future of money? Is cryptocurrency really the future of money? Well, to answer this question, we have to look at what money actually is and what it does. Money was first introduced as a medium of exchange for goods and services that wasn’t directly used in them but could be easily converted into something that was usable; meat has calories, but you don’t want to eat it, so you exchange it for something else instead.
Proof of Work (PoW)
With that said, there’s another method which works more like real-world mining. Called proof of work (PoW), it requires an immense amount of computing power to solve complex mathematical problems in order to verify transactions on a blockchain and generate new coins. PoW systems make hacking bitcoin through brute force nearly impossible. The upside is that proof-of-work currencies are decentralized and have no need for a centralized banking system or federal governments. The downside, however, is that it makes transactions slower and much more expensive than other types of payment methods. Despite these downsides, cryptocurrencies like Lite coin and Dogecoin still remain popular alternatives to bitcoin because they offer faster transaction speeds for users who don’t want to pay as much in fees. What do you think? Does crypto has a future? Can bitcoin be the future of money? Probably not. Bitcoin’s main purpose is to serve as a store of value, rather than transactional currency. On top of this, many people question whether Bitcoin can really become the world’s single currency with high volatility and how few merchants accept the digital coin. But will crypto ever become the future of money? Yes! It’s just too early to tell what form that might take right now.
Proof of Stake (PoS)
Proof-of-stake cryptocurrencies—like Tezos and Dash—are trying to solve consensus issues in a different way than proof-of-work cryptocurrencies. With PoS currencies, minters (aka miners) aren’t required to spend massive amounts of electricity on an expensive piece of computer hardware like they are with bitcoin. Instead, minters are paid for their contributions if they can prove that they own a certain percentage of coins in a given network (with rewards then coming from transaction fees, not newly created coins). Proof-of-stake systems are still a long way off from usurping proof-of-work currencies as most popular forms of online payment, but it’s an intriguing model worth keeping your eye on. In particular, some PoS currencies have the potential to be even more lucrative for investors than bitcoins. A lot will depend on how these digital assets can help facilitate actual purchases and smooth out international currency exchanges in the years ahead.
Other cryptocurrencies
Many new cryptocurrencies have been popping up in recent years. The jury’s still out on whether any others will truly reach Bitcoin-level popularity, Lite coin (abbreviated LTC) features faster transaction times and lower fees than Bitcoin. Still, it’s unlikely to unseat Bitcoin anytime soon as both currencies continue to grow in popularity—and in market cap. Dash. Dash was created by former PayPal developer Evan Duffield, who wanted to make a cryptocurrency that was faster than Bitcoin—and more private too. You can use a process called Masternodes to hide your IP address when you send coins, which helps if you don’t want governments or anyone else to see where your coins are coming from. It also costs just $1 to send $10 worth of DASH, which makes transactions super fast. There are about 5 million DASH in circulation right now with an inflation rate set at 7% per year until January 1st 2021 when it goes down to 0%. Like bitcoin, this isn’t an unlimited amount – so if the value does rise significantly we may see people hoard DASH instead of spending them.
Ethereum and smart contracts
Like many new industries, there are both pros and cons. While cryptocurrencies have grown increasingly more popular, there are still some major flaws with them that should be considered before investing any money. It can also be a bit overwhelming as there’s so much to learn about it all at once. Many people have gotten in over their heads and ended up losing a lot of money quickly due to uninformed decisions about crypto currency trading. Just like anything else, a little knowledge goes a long way when it comes to trading cryptocurrencies like Bitcoin or Ethereum; make sure you do your research before buying! However, if you want to trade with confidence, knowing what you’re doing will really help. That’s why our blog exists: we’re here to provide you with information on what’s happening in the world of cryptocurrencies and how to take advantage of these changes without making too many mistakes along the way. We can’t predict the future for these things, but we can help educate those who wish to become involved for success!
Crypto Pros
Although there are no fundamental benefits to using cryptocurrencies over regular fiat currency, they do have a number of advantages when it comes to transferring value. Cryptocurrencies can be transferred with relative anonymity, as most transactions are recorded on a public ledger rather than in names. They’re also easy to store offline and don’t require trust in any third party for safekeeping—especially useful for anyone living under repressive governments or economic sanctions that make traditional financial institutions unreachable. Cryptocurrencies can be exchanged globally and at any time (for now), without having to wait for banks to open and close. And while bitcoin has been the face of cryptocurrencies since its release in 2009, other players like Ethereum, Lite coin, Monero, Dash etc. are gaining ground quickly due to their innovation within blockchain technology. Ethereum was released only three years ago and already has more coins available for trade than bitcoin.
Cons
The main con to cryptocurrencies—and blockchain in general—is that it’s a relatively new phenomenon. People are still figuring out how to best use it, and there are some barriers to entry (such as high initial costs when starting up on an exchange). However, these barriers can be overcome by using cryptocurrencies in everyday transactions—like shopping at a grocery store or buying gas. Over time, it becomes easier to use cryptocurrencies like cash while also learning more about their strengths and weaknesses. And with so many companies now accepting cryptocurrencies for payment, there’s never been a better time to start using them. All that said… does crypto have a future? Can bitcoin be the future of money? It’s possible, but there are major hurdles to overcome first. For one thing, most people have no idea what bitcoin is because they don’t know what cryptocurrency means. That lack of understanding could make it difficult for bitcoin to become mainstream enough to take over currency as we know it today. Plus, it would take a lot of time and resources to get governments around the world on board with this change too.