Since introduction of the first cryptocurrency (Bitcoin) about a decade ago, more than four thousand alternative coins have been founded.
While it is widely expected that more forms and types of cryptocurrency will continue to capture headlines in the future, it is the invention and utilization of the underlying system, blockchain that has made it all possible.
The great appeal of anonymity involved in the transfer of money to and fro from a given node at a certain point in time, while ensuring the transparency and authenticity of the payment mode and route, is only going to add to the value of cryptocurrency.
It makes more sense to consider cryptocurrency as a branch of what the blockchain tree is capable of. This can revolutionize the way people interact with markets. As the connections are peer to peer based, this means that in the future, cumbersome business expenses due to payment validation and security can be eliminated by utilization of the continually validated and updating blocks interconnected through chains of information. It carries important pieces of digital information that forms the basis of cryptocurrency. One can envision the potentially vast applications of this technology from complex genome modifications in genetics engineering to voting systems. One can even mine these crypto currencies at home, so long as they have a strong internet connection like Comcast deals if you’re in need.
Currently, little legislation exists around cryptocurrency, which results in less reliability and even lesser trust from potential customers and investors who would still prefer slow, but proven methods of online payments. This is all set to change, as the government and financial institutions have started realizing the potential and utility of cryptocurrency, as evidenced by the change in the thinking of Goldman Sachs and the New York Stock Exchange, both of which are considering exploring the possibility of putting up a crypto exchange platform. The rapid transaction rates of mere seconds, along with other benefits, are too good a chance to be overlooked. It was suggested at the G20 summit held in Argentina to start work on regulation of the crypto market.
Recently, the International Monetary Fund released a positive study regarding cryptocurrency, offering a stepping stone for policy makers to start working on a system that is stable and self-regulatory in nature. The European Electronic Money Supervisory Commission’s active involvement to educate, streamline, and regulate companies under Initial Coin Offering certification will only help to establish stronger and more reliable platforms for future crypto markets, as only select companies will be approved for ICO certification. As several companies gathered massive funds through crowdsourcing, it was time that legislative measures be introduced and explored upon safeguard the people involved in crypto-based markets.
In addition, several countries like Russia and Iceland have started giving incentives to the rapidly growing mining community, realizing their potential as taxpayers. They also offer attractively low electricity rates, and their extremely cold climates are suitable, as minimal cooling infrastructure is required to optimally run the computing power set up for the crypto mining operation.
Challenges in the Future
As of right now, cryptocurrencies are poorly regulated, thus the general public is surrounded by fear of being scammed. The prices rise and drop overnight, and there are a number of faulty brokers who conduct illegal business activities that hurt their investors. Countries are coming up with updated policies to cover these gray areas.
There is also a large amount of energy consumed through the data mining process, which is another concern. The large amount of specialized devices needed to perform the mining process are also major environmental threats, as a lot of heat is generated as a byproduct. If we are to see a clear future of this technology, environmental concerns need to be kept in mind.
The banking system is aggressively resisting the entrance of these cryptocurrencies into our systems, since they are accustomed to dealing with flat currency systems. If this digital currency becomes strong enough, it will become exceedingly difficult for these banks to hold, transfer, and invest this commodity, which is quite volatile in nature.
Although it might be somewhat difficult for hackers to edit and alter entire blockchains, they still manage to cause enough damage. Hackers can access entire mining operations of various organizations, which results in less output and higher operational costs.
Despite the various fears and hindrances, these currencies have the potential of becoming even stronger and to replace the conventional currencies we use in our daily lives. Cryptocurrencies can even become the new medium of exchange in the future. Large mining corporations are being established with the sole purpose of developing and promoting these cryptocurrencies, and they are progressing at a rapid pace. It is only a matter of time before we see an even higher involvement of these commodities in our daily lives.
Robert James is an MIS with a vast experience and research on personal and home security tech and gadgets. He also write on Comcast Internet Packages. He is an MMA Fighter and Technology enthusiast with a will to act. Tech Writer and Researcher with a flare to review the latest security tech and gadgets