Question

You think Cryptocurrencies have a future in this world?

Answer 1

A cryptocurrency is a digital currency that is created and managed through the use of advanced encryption techniques known as cryptography. It is indeed changing the future of finance.

2017 had been an excellent year for cryptocurrencies, especially Bitcoin, which had recently hit the USD 20,000 mark in mid-December 2017 before crashing down to USD 11,000 and then bouncing back to USD 15,000 since start of the new year 2018.

As of today, 28th of February'18 the value of Bitcoin is USD 10,523. Nevertheless, not a day goes by when one does not hear about cryptocurrencies in media. Bitcoin septics think that it is a ponzi scheme and that the bubble is popping while supporters think that it is the greatest innovation to happen in a really long time and the downfall is just another blip.

WILL OUR FUTURE BE IN CRYPTOCURRENCIES ?

Those who are hopeful about the rise of Bitcoin may have noticed its popularity in countries like Zimbabwe and Venezuela, where it is being used as a major means of exchange when government issued currencies have failed due to hyper inflation. The value of such currencies are much stable as compared to the govt issued currencies.

Others say, cryptocurrencies cannot be used on a national scale because it supports only 7 transactions per second. Issue of privacy also stops it from becoming the future of money.

some of the limitations that cryptocurrencies presently face- such as the fact that one's digital fortune can be erased by a computer crash, or that virtual vault may be ransacked by a hacker- may be overcome in time through technological advances. Although, we need to consider the basic paradox that bedevils cryptocurrencies- the more popular they become, the more regulation and government scrutiny they are likely to attract.

While there has been an increase in the number of merchants who accept cryptocurrencies has increased, they are still in minority. For cryptocurrencies to become widely used, they have to first gain acceptance among consumers. However, their relative complexity compared to conventional currencies will likely deter most people.

A cryptocurrency that aspires to become part of the mainstream financial system may have to satisfy widely divergent criteria. It would need to be mathematically complex but easy for consumers to understand ; decentralized nut with adequate consumer protection and preserve user anonymity without being a conduit for tax evasion.

Since these are formidable criteria to satisfy, it is possible that the most popular cryptocurrency ina few years time could have attributes that fall in between heavily-regulated fiat currencies and today's cryptocurrencies.

Thus, there is little doubt that Bitcoin's success or failure in dealing with the challenges that it faces ay determine the future of the other cryptocurrencies in year ahead.