Is Cryptocurrency the Future of Money?
What will the future of money look like? Imagine walking into a restaurant and looking up at the digital
menu board at your favorite combo meal. Only, instead of it being priced at $8.99, it's shown as.009
Can crypto really be the future of money? The answer to that question hinges on the overall consensus
on several key decisions ranging from ease of use to security and regulations.
Let's examine both sides of the (digital) coin and compare and contrast traditional fiat money with
The first and most important component is trust.
It's imperative that people trust the currency they're using. What gives the dollar its value? Is it gold?
No, the dollar hasn't been backed by gold since the 1970s. Then what is it that gives the dollar (or any
other fiat currency) value? Some countries' currency is considered more stable than others. Ultimately,
it's people's trust that the issuing government of that money stands firmly behind it and essentially
guarantees its "value."
How does trust work with Bitcoin since it's decentralized meaning their isn't a governing body that
issues the coins? Bitcoin sits on the blockchain which is basically an online accounting ledger that allows
the whole world to view each and every transaction. Each of these transactions is verified by miners
(people operating computers on a peer to peer network) to prevent fraud and also ensure that there is
no double spending. In exchange for their services of maintaining the integrity of the blockchain, the
miners receive a payment for each transaction they verify. Since there are countless miners trying to
make money each one checks each others work for errors. This proof of work process is why the
blockchain has never been hacked. Essentially, this trust is what gives Bitcoin value.
Next let's look at trust's closest friend, security.
How about if my bank is robbed or there is fraudulent activity on my credit card? My deposits with the
bank are covered by FDIC insuranc