“No bank operates for the good of the people, they operate to make an unlimited profit (as interest) on each loan they give out”, writes Khunsha Javed, editor of BlockPublisher, in a piece titled ‘Fiat Currency is Designed To Put You In Debt, Bitcoin Will Save You‘.
One of the world’s most famous tech entrepreneurs, Elon Musk recently appeared on ARK Invest’s podcast as he said that bitcoin’s (BTC) structure is “quite brilliant“.
…crypto is a far better way to transfer value than pieces of paper. That’s for sure. Without a doubt.
said Musk during the podcast.
With spearheads like Tesla’s CEO, Elon Musk stepping in and appreciating cryptos, a more positive vibe for cryptos is likely to be established among the general public. As we are moving towards a more digitized world, it becomes only natural that there will arise the need for a digital monetary framework. Cryptocurrencies are stepping up to take the charge as faults and shortcomings in the traditional banking system rise up.
Just recently, we saw Venezuela struggle with getting back its gold reserves stored in the Bank of England. This shows that much freedom is not given in the traditional banking system as compared to cryptos. International transactions with banks also take up a lot of time and excessive fees. With cryptos, the entire scenario changes as they are not controlled by any central authority, transactions fees are low and the networks formed by them are global.
Venezuela just tried to withdraw $1.2 billion of their own gold out of the Bank of England.
They were denied this request by the bank.
If you don’t think uncensorable, unseizable money is going to become the standard, you’re absolutely nuts.
Long Bitcoin, Short the Bankers!
— Pomp ? (@APompliano) January 25, 2019
We also saw the CEO of Twitter, Jack Dorsey steps in on the concept of money for the internet. He was of the view that the internet deserves its own native currency and said;
The Internet deserves a native currency; it will have a native currency. I don’t know if it’ll be Bitcoin or not, but I hope it will be.
It has just been over a decade since cryptos erupted on the scene. Some issues are associated with them such as excessive energy consumption. The Proof-of-Work (PoW) is a mining algorithm that is used at the core of the world’s largest cryptocurrencies right now, bitcoin & ethereum. It involves solving a complex computationally demanding puzzle before generating the next block in the chain. Once a miner in the network solves this puzzle, he is able to mine the next block and get a reward. On average, a new block is generated after every 10 minutes in the bitcoin blockchain. As a reward, 12.5 newly minted bitcoin are given to the miner and new coins come into circulation. But in this entire process, a lot of power is consumed. As Musk pointed out:
I think actually one of the downsides of crypto is that computationally, it’s quite energy intensive. So there have to be some kind of constraints on the creation of crypto.
Just like every technological innovation, time is needed for cryptos to grow and mature. Solutions to issues like energy consumption are already springing up in the form of algorithms like the Proof-of-Stake (PoS). With big names like Elon Musk and Jack Dorsey talking positively about cryptos, it can be inferred that they are here to stay. Paper money or fiat’s time has ended and the era of Bitcoin has arrived!