We keep hearing opinions pro and against Crypto. Here’s the Achilles tendon of the Cryptocurrencies market
Many economist say there’s nothing with value in Bitcoin and other crypto’s.
They also suggest the fact that once there will be a tax on carbon, the crypto value will turn into negative and the price will drop.
But how can you apply a tax for a decentralized system? A system that lets any person who wants, no matter who he is and where he’s from, to mine crypto on his own computer?
And people aren’t doing this for free. No, it’s not free. Since they behave as a 3rd party, there’s a complex yet flawless commission system, that takes a small commission out of any transaction and passes it to the miner, and to prevent an inflation in crypto value, the system also halves the commissions the miner gets every 4 years. So if just a few years back you would get several Bitcoins commission for every verifying transaction, now it’s only a small portion of a bitcoin for same commission, and it will keep splitting every 4 years for more than 100 years from now.
Governments and treasure departments all over the world are worried with Crypto’s market.
Mainly fear. You fear what you don’t understand. They also worry about all the unregulated, dirty money, coming into the system, making criminals and terrorists thrive.
They are not wrong. Crypto does let you send anonymously funds around the world without any 3rd party (such as bank a involved). In crypto the people are the 3rd party and that’s why it’s not likely anyone can hack its system. It’s simply a decentralized system, with copies spread all over the world.
What it means is if I send some $100 worth of bitcoin, this action will always be inside the system log (the chainblocks), and in all the copies out there in the world. If, say this person would like to try and scam me and manipulate the logs to send himself other amount than I sent him – he will not be able to do so, because they’re too many copies out there that state the truth (that I sent exactly $100 to this person).
It’s similar to the fact that we have 8 billion people in the world. If one person will have his DNA manipulated by any reason or way – the rest of the world population’s DNA will remain the same. So that’s why crypto cannot be hacked.
Another incredible feature is the anonymity.
Sure, it can cause a lot of headache to governments, but the fact is the anyone in the world can have their funds managed, without any tyranny or corrupt government that can decide who has access to bank account and who isn’t.
In that matter – I think we’re not yet understanding the potential of crypto’s anonymity on many non-democratic countries.
Creates the option to easily send funds across the globe.
If you’ve ever wanted to send money to someone in another country you found it’s expensive and frustrating if you get lucky and simply impossible in many other times.
For example, if you want to send money to someone in China, you most likely will not succeed as most of them don’t have access to western banking systems and they all use WeChat app to send money inside China. Hard to transfer money = bad for business = bad for the little people.
Crypto does just that! You can send funds to anyone in the world, no matter where he is, what’s his government rules, what his bank decides, and simply in one word: EASY.
And probably the best advantage is that this fund cannot be inflated.
In general, there isn’t anything in the world that cannot be inflated. Regular everyday money can be printed by governments, that’s obvious.
But also Gold can be inflated too. If a new technology to locate and extract gold from the ground will be invented, or chemists will find a hypothetically way to generate gold in a lab – Gold’s value will be inflated.
Yes, I know it’s not something to happen anytime soon, but just for the sake of argument.
Crypto cannot be inflated. Once it’s generated in the first place, it has an unchangeable number of total crypto to be in the system. It can never be more and no one can add more into the system.
So the 3 main reasons that if any of them happens – the crypto market will crash are:
If it will turn out to be hackable. If you can hack it – it doesn’t worth anything anymore.
If somehow it will not be anonymous anymore
If a way to generate more crypto than should will come up