And so we come to the end of our ABC Crypto. After 25 lessons that we hope will have served to introduce in the world of cryptocurrencies and the Blockchain. However, we cannot say goodbye to this series, without having a few moments to discuss an issue of concern to everyone in the crypto community. What will be the future of cryptocurrencies?
The technology Blockchain: a safe bet
To answer this question, as almost always when we talk about criptoactivos, we must distinguish between the technology of Blockchain and the cryptocurrencies. Therefore, although the chains of blocks are the foundation for the operation of virtual currencies, are not equivalent between themselves. Therefore, when we talk about the future of the chains of blocks, we are not referring to the prospects of the crypto world as a whole. And is that, in the case of technology Blockchain, the security is much bigger than the talk of cryptocurrencies. The chains of blocks, in the years that have passed since the birth of Bitcoin, have been transformed by their own right-a pillar of the modern world. Spearheading a revolution that has affected not only the sectors most immediately associated with the digital world, such as the finance, but society as a whole. Today, and a step quicker than ever, all areas of our daily life are incorporating the Blockchain. Whether it’s the hospitals that use it to protect and share the medical records of the patients, the schools who use them for educational purposes, or the agriculture and the industry, who use it to streamline their processes, the Blockchain is everywhere. Thus, if there is a safe bet to make with respect to the crypto world, that is certainly the Blockchain. Therefore, regardless of the position that has a government with respect to cryptocurrencies as Bitcoin or Ethereum. There is not a single State which does not recognise the vital role played by the strings of blocks in the modern world. And that, in consequence, do not seek to strengthen their capacities in this field, investing millions of dollars to get it.
The race of the cryptocurrencies
The cryptocurrencies do not possess this degree of certainty with regard to their future. Therefore, in the world of virtual currencies, we are witnessing the start of a competition that will define the future of the international monetary system in the decades to come. We refer of course to the race of cryptocurrencies. A competition between the cryptocurrencies traditional currencies, virtual business and virtual currency and government control the sector of digital assets. This is a trend that we observe in the year 2019, and especially after the announcement of Libra, to the middle of last year. Therefore, the same aroused fears in all sectors of the crypto world, those who saw him appear on the horizon the challenge of a new competitor. So, Pound has driven an increase in the investment of the governments of the world in technology, Blockchain, including the acceleration of the projects aimed at the creation of virtual currencies by the government. Being at the head of this effort, the chinese government, with the already announced launch of its own virtual currency of the government in the coming months. The cryptocurrencies are in a crucial point of its development, generates a situation of competition to multiple bands, with clashes intra-and inter-sectoral. That is to say, while the cryptocurrencies (Bitcoin, Ethereum, Tron, etc), the virtual currency business (Pound, XRP, Corda), and the coins of government (Yuan virtual euro, virtual, etc) compete among themselves, they do it to the other currencies in their sector. So, we would be at the gates of one of the confrontations most important of the last decades. Where we see all these business groups, governments and communities, struggling to incorporate the best features, attracting more users, and bypassing the limitations imposed by the governments, to provide a better product and a better service.
What, then, does The cryptocurrencies?
This scenario leaves the cryptocurrencies in an interesting situation, but uncertain. Because, despite the fact that the competition between virtual currencies is not something negative in itself, to encourage competition and, therefore, the progress in the sector. The insistence by governments to maintain the monopoly that they possess it until the day of today in the field of monetary policy. Leads to the criptoactivos have to face hard obstacles in your way. Either a total ban cryptocurrencies as discussing whether to implement the India, or an attempt to harass the crypto companies in countries such as China. Organizations related to criptoactivos have to deal with barriers by the government for their income in the market. Which also applies, moreover, to virtual currency business as a Pound, which is not well received in most countries of the world. What, however, does not mean that the cryptocurrencies have the fight loss. On the contrary, the decentralization and the dynamism of the community of users behind of the cryptocurrencies. It is the best guarantee that these assets will have the ability to adapt and thrive in the new times. If, therefore, we must give our opinion on who will be the future of the criptoactivos, to finish with our ABC Crypto. We must say that the us looks bright, therefore, the cryptocurrencies would be reaching a point of technological maturity and economic, that will allow them to move forward and consolidate in the medium term. Even though they face a strong group of competitors from both the business sector and the government. Because, the most likely result of the race of the cryptocurrencies it is not mutual destruction, but the coexistence. The following two tabs change content below. Student of International Studies, interested in issues of economy and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and the cryptocurrencies in particular.