Why blockchain applied to cryptocurrencies is still a game changer
Blockchain applied to finance through cryptocurrencies is still a game changer for the finance industry.
I know that there is a ton of “crypto bashing” now everywhere from people who claim they are expert but there is advantage that classic finance will never have.
In finance, all is question of trust.
There is no “bad currency” or “good currency” or even “true currency” or “virtual currency”; there is only a value you give to something. This something can be material or immaterial ; nobody cares really.
We are speaking a lot about the centralized plateform like FTX who are dying but technically blockchain applied to cryptocurrency bring trust at another level then any other bank can do :
Indeed like with Bitcoin, the ledger is public.
It means that that everybody can count what money you have and what money you can spend.
It’s better than any credit scoring system can bring you.
On top of that it is certifying, under some conditions, that you are not lying to the people in front of you when you are showing intention to buy. It’s the best “trust system” we can imagine.
Banks may have similar options to garantuee the seller that the buyer has the money he needs to have but we need to trust the bank itself too…and we do not a have clear view of really the situation is.
SEPA is considered as very good system to transfer money in EURO and you can make wire now in 3 or 4 hours between 2 banks who take it. It’s a true value but it tooks a lot of time to bring finance at this level. Other currencies are still based on quiete archaic mechanism based on old computer and languages (Cobol ..)
Blockchain is only limited by the power of computation of the network of computers behind. It means that we will have , it’s sure, instant and secure payment with it when we will want it.
Keep your coins in a centralized exchange like Binance, Coinbase or any other is a personnal choice for pratical reason but nothing and nobody stop it to hold your wallet at home or in your pocket.
You have to know that majority of cryptocurrencies just check if you have the right to use the balance they compute in the public ledger .
This right is usually a crypted string but could be in the future or now an hybrid item with a physical and a logical side that can garantuee you that only you can use this “balance”.
The fact that there is no more “deposit” at the first sense of the term : we only compute what you have, what you sent and what you receive is also a big advantage because nobody can “steal” a deposit if the key is enough secure and the key is more or less you and you can decide it.
Go at your bank branch and ask ot have access immediatly to all your funds “right now” and you will see what happen and i don’t speak about possible states “taxes” that will tell you that you have no money anymore.
This “only” 3 main advantage would have been enough to kill all the finance industry in 2 weeks if the power of the old system is so enormous that the “physical gravity” of its failure drive all the journey in this industry.
Then , yes, cryptocurrencies is still future and the classic old banking system is dead yet. There is no reason that this system will survive.