Why can’t you ignore cryptocurrencies and blockchain
Cryptocurrencies have evolved over the past eight years to such an extent that they have become a serious threat to centrally managed systems such as banks, insurance companies, crypto payment system and, most importantly, to governments. Senior bank executives should not be blamed for ignoring this technology for many years. With the huge amount of money flowing through the banks every day, they couldn’t really imagine that one day they would have to face competition from the unstable digital currency. Distributed metering technology was not taken seriously in timeUnfortunately for centralized control systems, the cryptocurrencies have been strengthened and recognized. Now that early Bitcoin enthusiasts (see Bitcoin’s chart) and blockchain have raised millions of dollars, those who are too late can only talk about the shortcomings of the cryptocurrency and the threats of blockchain to the current financial system. However, it is impossible to ignore the obvious advantages. Perhaps the greatest threat from digital currencies to traditional financial systems and governments is the erosion of their credibility and the loss of “control and enforcement” mentality. Ordinary money remains valuable, in large part because it is guaranteed by the state and the availability and exchange rate of currency is controlled by central banks. Meanwhile, the cryptocurrency, relying on supposedly impregnable blockchain, is going to completely replace the traditional banking process.Taking into account the processes taking place, it seems counterproductive to ignore cryptocurrencies and everything related to them. Governments and the community must find new ways to adopt cryptocurrencies and blockchain for the benefit of the world economy and humanity as a whole.
Read it too:
- «Cryptocurrencies with huge growth potential in 2018. Part one. Monero, Ripple and Dash.”
- «Cryptocurrencies with huge growth potential in 2018. Part two. NEO, Stellar Lumens, Zcash»
- “What kind of cryptocurrencies will survive in the market?”
- “State regulation of cryptocurrencies in the world.“
- “How to choose a promising cryptocurrency for investment“
- “How to create an investment portfolio from the Altcoins in 2018.“
- «How to choose the right cryptocurrency exchange»
- «The future of IOTA: Why does Tangle beat Blockchain Iota’s forecasts for 2018»
Most governments do not deal with cryptocurrencies
Many countries are still not inclined to use blockchain technology. Nevertheless, China, Russia, the Netherlands and some other countries seem to be getting closer to using the new technology. For example, the People’s Bank of China is developing its version of the cryptocurrency. Reliable results are not yet known, but China may be the first country in the world to fully approve the state’s cryptocurrency in circulation. Given all China’s efforts with regard to the development of digital currencies, this does not sound entirely unrealistic.The Netherlands, meanwhile, has created a cryptocurrency to critically examine technology and functionality in the real world. An example of progressive attention to digital money is shown by Japan, which has equalized the rights of the cryptocurrency with the national currency. Conversely, South Korea has banned trade in cryptocurrencies.Russia has launched a pilot program based on Ethereum. Intermediaries in our Russian Forex brokerage rating 2018 that do not offer trading in cryptocurrencies are licensed by the CBR. Central banks in Europe and Japan follow the same path, but seem to be more interested in the potential benefits of blockchain technology to improve their market infrastructure. It is not yet known how different governments are going to take advantage of blockchain and reform their digital currency policies. But one thing is clear: if we continue to ignore these advanced technologies instead of clearly defining the rules of their use, then states will lose control over the international monetary system. It is not for nothing that many highly developed countries are preparing the legal framework for the use of cryptocurrencies.
Cryptocurrencies may suffer from political problems
In the financial sphere, the rules of the game are established by the state. And the authorities are still stronger than any other cryptocurrency. They can no longer eliminate the impact of Bitcoin, but they should adjust the functions of cryptocurrencies to prevent global currency chaos. Central banks, including the Central Bank of the Russian Federation, have claims to the overall stability of digital money and consider the danger of fraud and cyberattacks to be disadvantages. In March 2017, Fed official Jerome Powell voiced these policy issues and demanded detailed consideration of them.A particular danger of decentralization of money circulation is the lack of control of finances by the state. This weakens tax systems and makes it difficult to fill the budget and combat shadow business. Any state, through laws, can leave only the functions of accumulation to cryptocurrencies, still using national currencies to control taxes, budgets and the social sphere. There is no doubt that governments will have to come up with a clear policy on the use of cryptocurrencies and blockchain.
Blockchain is good news for small businesses
Cryptocurrencies and blockchain are in their infancy, but they have the potential to become the greatest technological advancements that the Internet has become. This is good news for small and medium sized companies that are suffering from fierce competition from corporations. The appearance of the cryptocurrency is caused, in particular, by the desire of economically independent citizens of developed countries to simplify financial operations. Small businesses are undesirable because of government interference and control by tax authorities. Cryptocurrencies decentralize the financial system, as the parties to the transaction are in contact at the horizontal level.Blockchain promotes small business by creating a fair environment for every player in the market. In particular, these advantages are manifested in blockchain Efiryum, by the way, the schedule of the airtime is on our website. Digital Autonomous Organisations (DAOs) enable the development and execution of smart contracts by decentralized, self-governing small business communities. Blockchain technology removes intermediaries (e.g. courts, lawyers, insurance agents) from the business process and significantly reduces maintenance and overhead costs. It seems unrealistic, but some small businesses have already begun to use blockchain to their advantage
Conclusion
Blockchain technology and cryptocurrencies can be very useful for the world economy. Japan, the third world economy, is a vivid example. Bitcoin is now accepted as a legal method of payment in Japan. Major Japanese banks have also invested in cryptocurrencies on stock exchanges and in projects related to blockchain technology. Finally, watch the video on the prospects of cryptocurrencies in relations with the state
Read it too:
- «Cryptocurrencies with huge growth potential in 2018. Part one. Monero, Ripple and Dash.”
- «Cryptocurrencies with huge growth potential in 2018. Part two. NEO, Stellar Lumens, Zcash»
- “What kind of cryptocurrencies will survive in the market?”
- “State regulation of cryptocurrencies in the world.“
- “How to choose a promising cryptocurrency for investment“
- “How to create an investment portfolio from the Altcoins in 2018.“
- «How to choose the right cryptocurrency exchange»
- «The future of IOTA: Why does Tangle beat Blockchain Iota’s forecasts for 2018»
Brokers who have Bitcoin trading available
- XM.com
- Etoro
- Plus500
- Instaforex
- FXTM