As we continue to state, Bitcoin is the largest news story of the century to date. Now of course Bitcoin is not the only game in town or in the world. Litecoin is also a new contender on the market and there are others already popping up. Crptocurrency as it is now being called is here to stay. Based on all present research, what our own opinion is at this time, paper currency will not be going away in any country anytime soon. Debit cards may disappear, however, credit cards will continue to flourish.
What we are also looking at will be an entire new series of laws and regulations that will come up around these new currencies that will also invade privacy as well as change the way services are rendered which will mean price increases on many services. Trying to protect your privacy in the future will become a crime. This is a given. What you presently take for granted will be going away. It's based on the technology. (Not really, that's just the excuse that will be used).
There are many areas of the technology that we like, however, there are now many areas of the technology that are really starting to concern us. The invasion of privacy that will follow is our biggest concern. How will this new technology invade privacy? It could and will be used to prevent anyone from remaining anonymous. Only criminals have something to hide. Are you a criminal? Now of course you will be allowed to conduct certain transactions in an anonymous fashion, however, you will go through a great deal of scrutiny, questioning and audits. You may or may not be found guilty of some form of conspiracy however. This is how privacy will be invaded then taken away.
Now it's not to say that it will be fully taken away, it will at first be made a major risk to anyone who wishes to try and remain anonymous for whatever reason. Cash will become a rare commodity in the next 10 to 15 years if not sooner. It still has uses, but they will become more and more limited. Why cash currencies will not go away. Imagine a major power grid goes out for days on end. Cryptocurrencies depend on the ability to conduct transactions electronically. How does anyone continue to conduct any form of trade without some form of payment in exchange? Battery backups? That is simply to limited. Some form of alternative payment systems will always be needed. Cash is the only means for that.
Other issues of cryptocurrencies, they devalue cash. When transaction and conversion fees apply one of the forms of payment must be devalued in order to value another. If cryptocurrencies become the main form of transacting business, then it's the cash that gets devalued. Now the cryptocurrency may be tied to the cash, one still has to take a hit. So a question now comes up. Is Bitcoin and other cryptocurrencies now starting to impact the value of other currencies? It has to. All of the cryptocurrencies have transaction and conversion fees. Those need to be paid for in cash. Add to it the country where you are conducting business and then take into account that they too want monetary conversion fees. To reverse the cryptocurrency back to cash? Yup, more fees.
So who is going to lose with the new age of cryptocurrencies? White collar workers as they get phased out of the offices as they will no longer be needed. That in itself is yet another full post for a later story.
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