Cryptocurrency is the talk of the financial world right now. There seem to be just as many people arguing for it as against it. Let’s analyze what crypto really is and see whether it is worth it to use or invest in this type of digital coinage.
First, some basic definitions are in order.
Crypto currency is created from what is known as “blockchain technology.” This is a type of finance-based tech that decentralizes the banking system and takes control away from the central banks. This is a good thing since much of the problem we have seen recently within the country and the world has been a result of central banks obtaining too much control over the wealth of the common people.
Socialism threatens to take even more control of the individual and in its fullest form, it would completely rule over someone’s life by controlling all of their money, their healthcare, and their wealth.
But America is not and will never be a socialist country as long as there are good people like many of you reading this blog who believe in yourself and others to take charge of your own lives. You are smart, independent-minded people who would never want to turn that control over to anyone else to decide.
That’s the good thing about crypto, too. It attempts to return control to the People just as President Trump has been trying to do since his election in 2016. But the problem with crypto is that, while it offers a way to take the power away from big banks, it relies on everyone in the “blockchain” being honest and sincere in their transactions. When you purchase Bitcoin or any of the other many crypto coinages that are starting to turn up lately, everyone along the chain is required to work together to verify the transaction and they approve it based on their interpretations.
This would be okay in a perfect world. But when you have a political climate where conservatives and “truthers” are often silenced due to the other side’s political views of how things should be, it can be something that endangers, rather than empowers common people.
Who will decide how crypto will be approved? There are, no doubt many different people who would be involved in this type of transaction. So the confidence that you give this type of transaction is dependent upon the unbiased attitude of all members involves in the blockchain.
Think of a blockchain as an internal money network which cuts out the middle man (the big banks), but fails to be impartial in the decision-making process in terms of which transactions get approve and which do not.
Remember there is a database on every person in the United States due to some things the Democratic party did in the past and how technology has been used at times in unscrupulous ways. So everything we do needs to be filtered through this situation and you should decide whether getting rid of the banks as a middle man is worth the risks involved in crypto’s unique money network operation that may lack integrity at times.
This has made the investment of crypto volatile, to say the least. Some people have purchased large amounts of crypto based on future predictions that have it topping the monetary charts, only to dump the same stock the next week when a new article comes out about its unpredictable future.
Further, it is easier for criminals to get away with purchases or transactions that are unscrupulous. This is because the crypto transactions cannot be traced the way banking transactions can.
While most people are ethical in their fiduciary responsibility, many are not.
I predict that the crypto world of digital coinage shall have to provide a solution to this conundrum before it becomes a mainstream method of payment if it ever does.
For now, we’ll have to keep dealing with the banks and try to avoid the fees by keeping better financial records.
It is important to develop good financial record-keeping habits now as this will be needed more in the future when you launch your career and start building your financial portfolio.