Feb 9, 2019 08:34 UTC
Feb 9, 2019 at 08:34 UTC
Cryptocurrencies Will One Day Threaten Financial System – A Lie?
It has been a decade since the arrival and the farthest that the Bitcoin has gone in term of threatening the financial system is in Venezuela whose financial crisis lead to the abolition of its national fiat and allow the usage of Bitcoin and cryptocurrencies throughout the country.
However, the Petro cryptocurrency which was created to counter the financial crisis and sanctions put on by the United States has been an outright failure. The government was in so much hurry to launch a digital currency that it skipped major parts in the development process and at the time of its release people were not even sure how the cryptocurrencies work or which technical consortium it uses.
As a result of this mismanagement, the United States also put sanctions on the newly formed crypto making its use illegal.
This article would track down the vision of Satoshi who saw the Bitcoin and cryptocurrencies as a revolutionary tool especially in developing nations where the centralized institutions and the governments are corrupt and do not hold any responsibility towards the declining conditions of the citizens.
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Cryptocurrencies Vs Financial System
Cryptocurrencies are based on the Blockchain and follow the principle of distributed ledger technology where the control of the system is distributed in the hands of the peer instead of being concentrated in the hands of few at the top.
Satoshi’s white paper for Bitcoin and his previous online activities led us to a conclusion that he was not a big fan of centralized banks and financial institution and believed they have no right to hold a monopoly over people’s money.
However, even today when the Bitcoin has turned a decade old and have reached the pinnacle price point of around $20k, the adoption is limited to a few online marketplaces. In order to become a force to reckon with in the financial system, the biggest challenge comes from various governments and regulators.
While the majority of the governments are ready to explore and understand the benefits of the cryptocurrencies, there are only a few who wants to make it a legal entity in the current financial systems.
Even in places where the use is semi-legal or have friendly crypto regulations, the early vision of cryptocurrency being the disruptive force for current centralized institutions seems a far-fetched dream.
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It’s not Just Regulators Who are a RoadBlock, The Community is Equally Responsible
No matter how strong the technology is, or how it can be used to implement major reforms, it’s always the ‘bad apples’ that spoil it for everyone. The major reason for the governments around the globe to discard the potential of cryptocurrencies is because of the few unpopular incidents which are used as a tool against the larger good.
Take gun laws for example, even though many pro-gun peeps can shout all they want about the second amendment but they need to realize that it’s the bad ones, because of whom the whole community suffers. Same holds true for Bitcoin, its early use in the dark-web market place already gave it a bad repo and a tool of defense to centralized institutions which they can use for as long as they want.
We all can be a part of the blame game and tell the world how regulators are being the roadblock in the next financial revolution. But at the same time, we must realize that most of us are not in the crypto game “for the technology”, but for the immediate monetary gains.
You cannot fight with the institutions which have been running in the same fashion for 100 years with your “beliefs”, you need to have concrete reason and the backing of a majority to do so. In order for cryptocurrencies to become a threat to financial institutions, the community needs to unite and look beyond the tokenization and immediate monetary gains.
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Cryptocurrencies and the crypto believers can surely dream of winning the battle against the financial systems, but the pretending must stop and the crusaders of the technology should focus more on improving the technology rather than focusing on the next bear market or how much they can make with their next token sale through Initial Coin offering(ICO).
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