DO YOU WANT TO BECOME YOUR OWN BANK?
Over the last couple of years the term cryptocurrency has been rapidly gaining the public eye.
You might be more familiar with terms like Bitcoin, Litcoin and Ether. These are all cryptocurrencies.
In fact, there many!
Just take a quick look
Just a simple google trend search shows you the start of the growth
But before you continue reading, I want to give a short primer of cryptocurrency
HOW WILL CRYPTOCURRENCY WILL HELP YOU?
The world is becoming more and more economically unsafe.
This is not to say we are not growing. But asNassim Taleb states in his book.
Antifragile. Our economic machine is like a glass jaw.
one small punch to it and it all comes crushing down! Both long term and short term this is not good for you and all of the hard working citizen of the world.
“FRAGILITY IS THE QUALITY OF THINGS THAT ARE VULNERABLE TO VOLATILITY.”
– NASSIM NICHOLAS TALEB
So below, I will outline some pros and cons of us adopting a global acceptance of Cryptocuurency.
And my hopes with this is…you will walk away with having found new found respect for cryptocurrency.
PROS AND CONS OF CRYPTOCURRENCY
The benefits of cryptocurrency over current fiat currency tech
Example: Central governments can’t take it away
Let’s take a look at some of the improvements that can be made to fiat currency by shifting towards digital cash:
ADVANTAGES OF CRYPTOCURRENCY
“THE BLOCKCHAIN KEEPS EVERYONE HONEST, AND A WHOLE LAYER OF BANKING BUREAUCRACY IS REMOVED, LOWERING COSTS.” — PAUL VIGNA
YOU OWN IT
There is no other electronic cash system in which your account isn’t owned by someone else. Take PayPal, for example: if the company decides for some reason that your account has been misused, it has the power to freeze all of the assets held in the account, without consulting you (Trust me, this has happen to me many times) It is then up to you to jump through whatever hoops are necessary to get it cleared, so that you can access your funds.
With cryptocurrency, you own the private key and the corresponding public key that makes up your cryptpcurrency address. No one can take that away from you (unless you lose it yourself, or host it with a web-based wallet service that loses it for you).
THE BAD THINGS ABOUT CRYPTOCURRENCY
Overall, cryptocurrencies have a long way to go before they can replace credit cards and traditional currencies as a tool for global commerce.
Bottom Line: Cryptocurrency is a baby.
It will needs years and years of exposure to the global system, before the masses start accepting it.
HIGH RISK OF LOSS
The benefits of cryptocurrency trading
Lee, adjunct scholar at the Cato Institute and regular contributor to Forbes.com, identifies four reasons to be cautious about bitcoins:
There are always pros and cons to any situation in life. To be able to make a good decision, you need to weigh the good and bad thoroughly before finalizing your choice.
With Cryptocurrency, it’s more about mass acceptance than technology. The technology is here.
Only time will tell when the rest of the world (governments, citizens) will say…YES!