Future of Cryptocurrencies

Since the emergence of Bitcoins there has been a widespread debate on its future and that of other cryptocurrencies. Since the inception of Bitcoin in 2009, it has led to the formation of more digital currencies. So far, other than in remote situations; cryptocurrencies haven’t been used in facilitating commerce in many places. However, they have emerged as a by-product of another invention and they are really gaining traction due to the power of internet commercialization. In this text, we are going to look at digital currency and its future in today’s market.

WHAT ARE CRYPTOCURRENCIES?

Cryptocurrencies are digital records in a database that no one can edit without meeting specific conditions. This may seem ordinary but imagine you take your money to the bank; this is the same as making entries in a database that can only be altered under specific conditions. Notes and coins are also limited entries in a physical database that can be altered if you equal the condition than you physically possess the coins and notes. Money is simply a verifiable entry in databases of balances, accounts, and transactions.

Like Bitcoins and other cryptocurrencies entails a system of peers. Each peer contains a history of all the transactions and balances in every account. Therefore to make it easier for the uninitiated, a cryptocurrency is an entry about token in a decentralized consensus-database. They go by that name because the consensus keeping procedure is held together by strong cryptography. Cryptography is secured by math and not by people as some may think. Therefore, in essence, cryptocurrency is digital currency. With digital currency, social and economic possibilities were unimaginable 15 years ago can now be created. In the same way that internet has enabled people in remote parts of the world to access boundless opportunities, digital currency will also afford everyone an opportunity to participate in the world economy.

THE FUTURE OF CRYPTOCURRENCIES

While studying the future of digital currency is important to put into consideration possible deterrents that could emerge. Local governments and central banks are likely to pay keen attention to these emerging currencies.

ADVANTAGES OF CRYPTOCURRENCIES

  • They are digital and cannot be reversed or counterfeited arbitrarily as with charge-backs and credit cards
  • Digital currencies use a push mechanism whereas credit cards operate on a pull mechanism. With the credit card, the merchant has full access to your full credit information even though the transaction is small. With the cryptocurrency, the holder sends exactly what he wants with no further information.
  • Most people can now access mobile phones and internet. Such individuals are now primed to use cryptocurrency.
  • Cryptocurrency transactions are not charged. This is due to the fact that the miners are usually compensated by the network.

DISADVANTAGES OF DIGITAL CURRENCY

  • Cryptocurrencies are a bit technical for people to understand them. The mechanics of their key management are quite confusing
  • Since no one knows which currencies are to be adopted at scale, most people are uncertain on how they ought to use them
  • Cryptocurrencies lack widespread adoption which could cause volatility and thin markets.

The advantages of digital currency far outweigh the disadvantages. That is why we need a more advanced way in carrying out our transactions. Presently, the greatest challenge to the adoption of cryptocurrency is their widespread adoption by ransom extortionists, drug dealers, terrorists and human traffickers among others who maneuver in the underground economy. This is a proven way of hiding illicit commercial activities and profits from the curious eyes of governments across the globe.

However, this might change soon. Many transport hubs and international ports are considering using digital currencies in making their payment structures since they are the trend of the future. San Francisco is one such port. Marcus Andrade recently met with the San Francisco port leaders for deliberations into a possible transfer. Andrade, a software entrepreneur with AML Bitcoin is negotiating with port officials on ways to utilize digital currency as a mode of payment from the blemish of criminality and abuse attached to the concept. AML stands for Anti-Money Laundering. According to Andrade, most ports will become adopters of the AML Bitcoin. Given the innovations that this technology brings to the current technology, the American Department of Homeland Technology could also have an interest in it. The whole idea is moving like wildfire contrary to what most people suspected. The American Congress was exploring the possibility of drafting a legislation to permit a wider use of the currencies in the daily transactions if they met the existing banking standards. Tech-Industry insiders believe that this technology would revolutionize the world currency.

Sites for digital currency can be very helpful to the vast majority of music lovers who do not want to infringe on the law. These will have a legal way of accessing their favorite music. AML Bitcoin, for instance, will offer a majority of its fans around the globe a means to utilize their digital currency without going against the banking laws.

Banking laundering has been a menace today, however with the idea of digital banking, which is in line with anti-money laundering and other banking laws will likely act as the bridge across what we think of as money with bytes and bits that change hands.

For these goals to be achieved, the digital currency has to be transparent enough for it to become a staple store of value. Criminal elements have to be stopped from using it as a means of financing their operations. Since the use of digital currency has become popular in private sectors by governments, it will soon be accepted as a medium of exchange which will eventually be the downfall of any currency currently in use. The uses of cutting-edge technologies that are AML compliant are in the works as San Francisco looks to evaluate the new digital currency. If the port of San Francisco adopts Bitcoin as a payment mode, it will be a huge step towards Legitimizing digital currency. Meanwhile, only time will tell when the rest of the world governments will say yes to digital currency!