Cryptocurrencies are really making a fuss in the news lately. Not just because Bitcoin is constantly reaching record highs. Cryptocurrencies pose big problems for governments and banks across the globe. Why? The fear is that they allow people to trade with a certain level on anonymity, making it difficult for governments to tax income. They also remove the need for banks to keep track of transactions and records, since all Blockchain records are public.
The obvious problem with this is Money Laundering, though that's only an issue when a Central Bank or Government is involved. In terms of the every day person, it's a beautiful thing. No one other than you and the person you are trading with is involved in those transactions. There isn't a central agency that can dictate the value of your currency to you.
I'd like to keep the political arguments aside and look purely at how this idea could possibly shape our culture and how we view the value of trading with each other. A Cryptocurrency would allow people to trade their goods and services based on an agreed upon value in that currency.
A painting that is worth fifty space bucks to one person, may not be worth anything to another. That's the point of currency. Yet central banks and governments do everything they can to regulate currencies and how much of it is available. This effects the overall value of your currency, even if you didn't agree to those changes in that system.Read More