Hello I’m Mike, and I’m NotYourAverageMillennial….
In today’s article I will be discussing the good and the bad of cryptocurrencies and blockchain technology. The point of this website is to explore all possible alternatives that will lead us to liberty. However, I am not trying to sell you or urge you to take advantage of cryptocurrency or the blockchain technology. This article will touch on the following:
- What is cryptocurrency and blockchain technology
- The pros of cryptocurrency and blockchain
- The cons of cryptocurrency and blockchain
Cryptocurrency and Blockchain: A Crash Course
Cryptocurrency, according to dictionary.com is:
” a digital currency in which encryption techniques to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.”
Cryptocurrencies make used of blockchain technology. This now leads us to ask : What is blockchain technology? The best way to answer this question is to quote authors Don and Alex Tapscott:
” The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value”
This is how cryptocurrency and blockchain works hand in hand: An individual downloads a cryptocurrency wallet which consists of two keys, a public key and a private key. They are both used to encrypt and decrypt data within the blockchain.
The public key can be shared with everyone, while the private key is kept secret. The private key is how someone who receive their cryptocurrency is order to make use of it.
Cryptocurrency has great potential and some enticing benefits.
First, the blockchain technology is decentralized. This is quite the benefit for someone who is trying to break away from using the centralized banking system. There is a quote that was said by Mayer Amschel Rothschild:
“Let me control and issue a nation’s money, and I care not who writes the laws.”
This quote applies to the financial system today. The money supply of American, Britain, and Canada are all under centralized control of the International Monetary Fund. On top of that, they are fiat currencies back by nothing of true value. Better stated, they are backed by military force. Not really a good way to do business.
With cryptocurrency you are basically your own bank and you control your own money supply through the P2P (peer-to-peer) blockchain technology.
Second, blockchain and cryptocurrency is available to everyone. All you need is a digital wallet and some cryptocurrency and you are good to go. The blockchain technology makes use of something called “smart contracts” where two people can deal with each other rather than a third party. No middleman involved.
Third, cryptocurrency protects against fraud. There is a limited amount of cryptocurrency that can be created so the money supply can’t be inflated like the U.S. dollar, or any other cryptocurrency for that matter. It also cannot be counterfeited. This is also a huge plus.
Fourth, this is a good way to take your wealth with you no matter which country you choose to relocate to. This eliminates the need for off-shore bank accounts or the red tape involved in order to transfer you wealth to another country can be an absolute headache. All you need is a cell phone/laptop/tablet and an internet connection and you can take your wealth with you.
Now I don’t think I would be fair if I didn’t touch on some downsides of cryptocurrency. Just to reiterate, this is not about urging you to get cryptocurrency, but rather to educate you on it so that you can make an informed decision on whether you would like to go this route.
First, cryptocurrencies aren’t mainstream yet. There are still so many people who are not caught up or those who may be aware of cryptocurrency but have not yet fully embraced the idea. It will still need some time to fully catch on be acceptable to the public. Also, most retailers and businesses do not accept cryptocurrency which does not give you a lot of options as far as purchasing goods and services.
Second, if the electricity goes out and you have no access to internet service, your cryptocurrency becomes useless.
Third, government agencies are labeling it as a form of money laundering. This would give governments a reason to heavily regulate or even outlaw the use of cryptocurrencies in the name of “financial security”. They may even go as far as to call cryptocurrencies “financial terrorism”. This may sound preposterous, but keep in mind that governments are known to go to any measures to maintain its control, specifically financial control.
Fourth, cryptocurrency, in also honesty can be considered a fiat currency. Just like the U.S. dollar, it is not really backed by anything of value. To add to this, the first cryptocurrency (Bitcoin) was started by someone with the alias Satoshi Nakamoto. Apparently, no one knows who this person is which may caused people not to have too much confidence in Bitcoin.
Finally, some people believe that cryptocurrencies are leading up to a one world currency. If you are a religious person this may give you some pause. After all, if cryptocurrencies do become of interest to more and more people, cash will be done away with. This may alert the religious minded to a “mark of the beast” situation. Of course if you are not religious (or do not subscribe to the one world currency conspiracy) this may not apply to you.
I hope that I have given you some food for thought regarding cryptocurrency and blockchain technology. I myself am by no means an expert on it. I do see the value that it could provide if it were to be accepted on a wider scale. And the potential of a currency that is not controlled by the banking cartel makes it worth considering. In the end, the decision falls on you because individual liberty is all about doing what you feel is right and what works for you provided that you do not hinder anyone else’s liberty.
In my opinion I would highly recommend investing in at least a small amount of cryptocurrency.