Cryptocurrency: 21st Century Bane or Boon?

Satoshi Nakamoto, inventor of Bitcoin, never intended to invent a currency. It was a “peer to peer electronic cash system”. The key part was that he found a way to build a decentralized cash system with every peer in the network having a list of all transactions.

A simple definition would be “limited entries in a database no one can change without fulfilling specific conditions”.

 Source: Blockgeeks

The transaction is known immediately by the whole network and gets confirmed after a specific amount of time. It can’t be reversed and is not forgeable. It is part of an immutable record of historical transactions – the so-called block chain.

Crytocurrencies are built on cryptography. They are not secured by people or by trust but by math. We could describe properties of crytocurrencies into transactional and monetary properties.

Transactional properties will include: irreversible; pseudonymous; fast and global; secure; permissionless.

Source: Blockgeeks

Monetary properties will be controlled by supply and no debt but bearer – it’s a system of IOUs.

It is revolutionary in impact. It is an attack on banks and governments over monetary transactions of their citizens. It is an attack on the scope of monetary policy – i.e. central banks control of inflation or deflation is now irrelevant. Cryptocurrencies are changing the world. Step by step. We can either standby on the sidelines and observe it or become part of history in the making.

Notes:  There is a follow up on previous article "India’s GST of 28%:  Is This A Valid Benchmark?".  Please go to this link (Read more here) for the update.