Why The World Needs Cryptocurrency

Why the World Needs Cryptocurrency

The future of finance

For many of us, cryptocurrency is everything we don’t understand about money combined with everything we don’t understand about computers. So, today we’re going learn, once-and-for-all, WHAT cryptocurrency is and WHY it’s here to stay.

You’ve probably heard of Bitcoin. There’s a good chance you’re sick of hearing about it. Still, most people fall into the category of kind-of-knowing-what-it-is-but-not-really, and there are few new technologies as shrouded in misconceptions as crypto and the Blockchain technology behind it.

Sure, Bitcoin has undoubtedly allowed more 17-year-olds to purchase Lamborghinis than any other technology in the history of the world but in reality, Bitcoin is a game-changer for reasons far beyond that. And it affects everyone.

The real reason for the rise of Bitcoin

A cryptocurrency (like Bitcoin) is a form of digital money that does not rely on a bank or government.

While Bitcoin won’t be replacing regular money anytime soon, the reason cryptocurrencies have become such a popular and lucrative investment is simple: There is a very real demand for what they offer, including:

Less dependence on banks & financial institutions
A new way to do business directly with each other, without the need for a third party like a bank or real estate agent
True privacy & ownership over our assets & information, beyond the control of tech giants, corporations and institutions
Better access to financial services such as savings accounts, loans, insurance and international money transfers (especially for the billions of ‘unbanked’ people around the world)
A fairer, more efficient alternative to the current financial system – faster & cheaper transactions and a whole world of new financial possibilities
The opportunity for regular people to make highly profitable investments in a new asset class that lies outside the stock market

The value of any asset or industry can be boiled down to supply & demand. The rise of crypto in the last decade has made it abundantly clear that this new technology offers something that people genuinely want and need.

There’s no simple solution the world’s financial problems. But there’s a really good start. And everyone from governments to tech-savvy billionaires to your Uber driver are waking up to the potential of cryptocurrency.

But before we dive into how crypto will change the world, let’s go over some fundamentals.

Crypto & Blockchain in a nutshell

Cryptocurrencies (like Bitcoin) are a form of digital money created to give financial control back to the everyday person, completely removing the need for a bank to be involved.

Money passes directly from me to you (along the Blockchain), making the transaction highly secure and free from any of the usual fees or waiting periods.
Blockchain is the technology that powers crypto. At its core, it is a shared online database that offers us a safe & trustworthy way to do business directly with each other, without the need for a fee-charging-third party like a bank or insurance company.
With Blockchain, trust is built into the network, meaning you can reliably trust & do business safely with someone you’ve never met, something completely unprecedented in human history.

While digital money (Bitcoin) was Blockchain’s original application, Blockchains can now be used to securely record, store & transfer virtually anything of value (money, land titles, digital identity, electoral votes, medical records, music & video, etc.)

Cryptocurrencies & their Blockchains are completely decentralised, meaning they are not owned or controlled by any single person or entity, and instead maintained by a global network of computers.

Why the hype?

In the last 50 years, few new technologies have struck a chord in the way Bitcoin & crypto has. Since Bitcoin’s inception in 2009, what began as a fringe internet movement has now matured into a worldwide phenomenon and the fastest growing financial market in the world.

Crypto & Blockchain technology are rapidly making their way into the mainstream conversation, with companies such as Microsoft, Mastercard, JP Morgan, Paypal and Visa, to name a few, jumping onboard.

The world wants and needs cryptocurrency. In the next 10 minutes we’re going to explain why.

We’ll cover:

How crypto came about & why it will change the world
A number of real-world examples of how cryptocurrency can improve our lives
Why the Blockchain technology that powers crypto is the most important technological development since the Internet

In the scheme of things, crypto is still very much in its early stages. So, if you’re here to learn about this exciting new technology, congratulations! You’re well ahead of the curve.

If you’re brand new to the world of crypto and want to know more, check out Crypto Simple, starting with our ‘What is Cryptocurrency’ and ‘What is Blockchain’ articles, where we get you savvy on the fundamentals in as little time as possible.

By the people, for the people

Let’s first recap where crypto came from and the context in which Bitcoin, the original cryptocurrency, arose.

Bitcoin burst onto the world stage in 2009. The housing market had just crashed leaving thousands of people in ruin. The Occupy Wall Street movement was accusing big banks of rigging the system, misusing borrowers’ money, charging exorbitant fees and tricking innocent people.

There was a very real dissatisfaction with our financial systems and ‘business as usual’. The world watched as countless people lost their homes while the bankers who caused the crisis were bailed out by governments with our taxpayer money.

Bitcoin emerged as the first digital currency that did not require a bank. It was designed to give power back to the everyday person by lessening our dependence on banks and institutions who seemed to prioritise profit over the people they serve.

While Bitcoin quickly became infamous for making people overnight millionaires (due to the incredible speculative demand for such an unprecedented asset), it remains rooted in the idea that our systems should be by the people, for the people (hence the Blockchain).

To this day no-one knows who the creator or creators of Bitcoin are – is there a humbler beginning than not taking credit for completely changing the game? Over a decade after its inception, the original cryptocurrency is more valuable and widely accepted than ever.

The crypto space has grown exponentially in the past few years, and with thousands of innovative new cryptocurrencies available, each offering their own unique utility to the world, we are beginning to see Bitcoin’s legacy play out as the creator intended.

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What crypto offers that regular money doesn’t

The evolution of Bitcoin and other cryptocurrencies have undermined the foundations of the financial system as we know it. Here’s a couple of reasons why.

Cryptocurrencies offer:

Better security – Blockchains store unalterable records (of virtually anything) that make it incredibly difficult for fraud or tampering to occur, due to the network’s decentralised nature
A faster way to send money locally and internationally, with significantly lower transaction/conversion fees
True ownership & decentralisation, meaning your assets are not controlled by any single person, entity or government
Accessibility – All you need is an internet connection to use crypto (especially useful for the many who don’t have bank accounts)
Privacy and anonymity – While the Blockchain’s records are permanent and transparent (making it harder for corporations to engage in under-the-table business), your personal identity is not revealed to anyone

Why are there so many cryptocurrencies?

Thousands of cryptocurrencies (some better than others) have been created since the inception of Bitcoin. The idea is that each crypto should provide a unique utility to the ecosystem, or solve a real problem in the world. For example:

Monero aims to address privacy concerns, leading the way in anonymous and private digital money.

Ripple seeks to replace the SWIFT interbank payment system with an instant and less expensive international payment system.

Audius connects fans directly with musicians, giving anyone the freedom to distribute, monetise, and stream music & audio.

Ethereum provides a platform for smart contracts and dApps (decentralised applications) to be built, creating a space for a range of innovative and decentralised financial services (DeFi) to evolve.

Theta offers next-level video streaming, allowing users to earn rewards for sharing their bandwidth and relaying video to other users on the Blockchain.

Stellar attempts more efficient international transactions, with the added goal of banking the ‘unbanked’ people around the world.

Enjin Coin leads the way in Blockchain Gaming, offering a digital currency that gamers and in-game economies can utilise.

Why we need Cryptocurrency

Much of the hype around Bitcoin & crypto has been based around making life-changing investments. However, the money-making element forms just one (albeit large and very attractive) part of the crypto movement.

Currently, we have little choice but to submit to banks and insurance companies. With almost no say in the matter, we pay the exorbitant fees that cover the costs of an outdated and corrupt financial system from skyscrapers to tons of unnecessary paperwork to the ridiculous salaries of executives.

Shareholders of these financial behemoths demand big returns, and with regulatory costs and the salary of high-up employees at an all-time-high, it’s no surprise that we, the general public, are left to pick up the bill.

Cryptocurrency offers an alternative to the current system, and we are now seeing these digital currencies being accepted, adopted and invested in by governments and some of the biggest companies in the world (IBM, Tesla, JP Morgan, Facebook, Mastercard, to name a few).

By now you’re probably wondering, but how does it all work? How does cryptocurrency achieve all these advantages over regular currency? The answer lies in the incredible Blockchain technology its built on.

What makes Blockchain so special?

Here’s what Blockchain does on a practical level, without getting bogged down in the technical details:

In the past, whenever a serious exchange of value needed to occur (buying a house, sending money internationally, claiming an insurance policy), we would need to bring in a trusted third party (real estate agent, bank, insurance company, etc.) to oversee the process. And we would pay them for their service.

Blockchain allows you to safely trust and do business with complete strangers because trust is inbuilt into the network. For the first time in history, people who have never met before can safely exchange and transact virtually anything of value directly with one another.

And Blockchain has many real-world use cases and applications beyond just finance & cryptocurrency including online voting, supply chain management, digital IDs, food safety, corporate social responsibility, medical record-keeping, weapons tracking, tax regulation and much more.

How will crypto & Blockchain change the world

You would need a thesis (we’re working on it…) to explore all the ways in which crypto & Blockchain will change the way society operates.

Although the benefits of cryptocurrency will be unmissable through things like faster international payments, an alternative place to store money for those living in precarious economies, and safer & more efficient E-commerce, these improvements are just the tip of the iceberg.

Before we dive into some of the broader impacts of crypto and the Blockchain, here’s a quick summary of why we believe that we are witnessing one of the greatest technological revolutions of the modern age:

Blockchain & crypto can completely change the way we think about money, assets and information in terms of ownership, trust, earning interest, sending money internationally and much more.
Blockchain allows us to trust and do business with complete strangers (because trust is built into the system), without the need for involving a ‘trusted’ third party like a bank or real estate agent
With Blockchain’s applications extending far beyond just finance, we are seeing the foundations of how we do business revamped in an innovative and empowering
Records on the Blockchain are public, transparent, continually reconciled and easily verifiable, increasing accountability and decreasing fraud and corruption at all levels of society.
Blockchain technology can change the way we interact as human beings, giving us a reliable way to share and track information like never before.

Blockchain has already proven to have highly useful applications in online voting, supply chain management, music & video streaming, digital IDs, food safety, corporate social responsibility, medical record-keeping, tax regulation and much more.
Central banks, monetary authorities and third parties are undermined by cryptocurrency, We are seeing many scrambling to adapt to the more transparent, efficient and democratic system that digital currencies are paving the way for.
Decentralised finance (DeFi) is one of the major drivers of the crypto movement. DeFi essentially recreates financial services like insurance, loans & savings accounts on Blockchain networks completely outside the control of banks, governments & companies.

Billions of ‘unbanked’ people around the world will now have a way to easily send money overseas, while also having a place to safely store their assets and land titles, protecting them from the precariousness of their economies.

But enough grand, philosophical statements. You want some tangible real-world examples. Here’s a couple to get you started.

How cryptocurrency & Blockchain can be used to improve the voting process

Let’s take something as fundamental as the voting process – a cornerstone of any democracy.

Currently, voter apathy is a real concern. Many have suggested that moving the voting process online (and onto mobile devices) would increase voter participation and make it far easier for everyone to be involved in their country’s election.

Along with making the actual voting process easily accessible from your smart phone or any computer, the nature of the Blockchain being an incorruptible digital record means that fraudulent voting would become far more difficult. This means a system that is far more secure and better protected from outside manipulation (as the record is not controlled by an entity and is completely transparent and unalterable).

Given the recent controversy over the legitimacy of government elections in America and abroad, this added security is badly needed at a time when faith in institutions and democracy is declining, and elections can be too easily manipulated by tech giants, private corporations and foreign influences.

The actual counting of the votes would also take much less time (as it would be done digitally) and would allow us to see, in real time, what is happening as votes are cast. No more long and drawn out elections where votes are counted and recounted (by the same people…)

Here’s a simple example of how the voting process would work:

A citizen of a country is electronically issued a single cryptocurrency token by their government. Let’s call the token Vote Coin.
They would then be given two (or more) encrypted digital wallet addresses to send their Vote coin to. Each address would represent one of the candidates they have to choose from.

After deciding, they would simply send their crypto token along the Blockchain to their desired candidate’s address (and from the comfort of their home).
When the voting process was complete, we could easily see which candidate received the most Vote Coins, and we would have a trustworthy, unalterable and time-stamped record of when every vote was cast. Not so bad when you compare it to the current paper system!

What are some other examples of how Blockchain & crypto will make the world a better place?

Encourage Crowdfunding

Cryptocurrency and crowdfunding go hand-in-hand. Crowdfunding allows a large number of investors to make small investments in different ventures, mitigating investors’ risks while providing more entrepreneurs with the capital needed to make their idea a reality.

Traditionally, access to capital and loans have not been available for a huge portion of the world, especially those without bank accounts or successful past businesses. Now, cryptocurrency makes raising money for a project or business a whole lot easier and more common than ever before.

Real estate & property ownership

Blockchain technology removes the need for intermediaries in real estate, offering a more efficient and direct way for buyers and sellers to connect with one another. Along with brokerage fees and transaction costs being greatly lowered, Blockchain also allows for fractional ownership of real estate, making the barrier to entry far more accessible.

Land titles and property ownership is another area that Blockchain could improve. While Blockchain isn’t going to replace the government anytime soon in terms of how land is registered and monitored, it will make the actual ownership and governance of land much more secure and freer from corruption.

For many in the developing world, proving property ownership and land titles can be extremely difficult. By having a permanent, secure and easily accessible database to store land titles, the Blockchain makes this process more efficient, empowering countless individual across the globe in a very real way.

The music & entertainment industry

Protection of rights and the distribution of earnings within the music industry is an area Blockchain and crypto could revolutionise. By storing music (and any content for that matter) on the Blockchain and allowing people to pay artists directly for their content with crypto, we would see a substantial decrease in piracy, with artists receiving a far bigger cut of the money as there would be no (or at least one less) third party involved. Compared to the current cut they get from services like Spotify, this would be a big step in the right direction.

Musicians such as Bjork and Imogen Heap have begun to adopt this technology, and there has even been a growing market for limited edition merchandise and digital content from musicians that can be only bought with cryptocurrency. Theta Network and Audius are two crypto projects leading the way here.

Food supply chain, safety and provenance

Inefficiency in the food system is a pervasive global problem. This was made painfully apparent by the COVID-19 crisis, which put incredible stress on the global supply chain. On top of that, sustainability matters more than ever to the consumer of today and many only want to engage with companies that source their products in an ethical and environmentally responsible way.

Tech giant, IBM, has embraced Blockchain technology and has created a supply where harmful, ‘business as usual’ practices of dubious sourcing, manufacturing, distribution and recycling processes are being replaced by complete transparency, responsibility and accountability.

Solutions built on the IBM Blockchain offer consumers the ability to follow the life of a product from beginning to end in a way that has never been done before. In terms of corporate social responsibility, the Blockchain is a big step towards a more trustworthy system that keeps corporations accountable for their actions.

How will Blockchain & crypto help the developing world?

While many are interested in cryptocurrency solely to turn a profit, the reason this is such a lucrative space is because of the real-world utilities that certain cryptos possess.

For instance, Bitcoin and cryptocurrency are huge in Venezuela, where their national currency became practically worthless in a short period of time. Cryptocurrency, and ‘stablecoins’ in particular, provide a safe place to store money during times of economic turmoil. RSR is a great example of this. For developing countries with precarious economies, cryptocurrency represents a new world of possibilities.

Considering there are literally billions of people in the world without a bank account, Blockchain and cryptocurrency have begun a fundamental shift in how developing countries operate. Some areas likely to see huge positive change include (but are not limited to):

Efficient money transfers (without the fee-charging third party)
Land title proof
A safe place to store assets
The ability to earn interest without a bank account
More effective humanitarian aid
Better access to loans, capital and real estate investments
Micro loans and small business funding
Access to insurance and other financial services

Perception vs Reality

There are A LOT of misconceptions in this industry. If you are interested in investing in crypto, here are a few things to note:

While crypto can (and does) make millionaires out of regular people, it should not be seen as a get-rich-quick scheme.
Making big gains in a short period of time is possible, but like traditional investing, slow and steady is the best strategy over the long run.

Additionally, due to news coverage and Bitcoin’s early popularity on the dark web, many associate Bitcoin & crypto with scams & illegal activity. Let’s clear up a few common misconceptions.

The Bitcoin network has NEVER been hacked. Some people have lost money in crypto due to a lack of understanding of what they’re getting into and how to manage their crypto and conduct themselves online.
Crypto is not used for money laundering and illicit purposes any more than the US dollar. While the space undoubtedly has its issues, crypto is just a technology that can be used for both good and bad.

Most people have the basic understanding that crypto is digital money without a bank, but fewer people understand the true implications that crypto will have on society. While no-one can say exactly what the future will hold, there is good reason to believe that crypto is here to stay.

Cryptocurrency as an investment

While this article gives a broader perspective of cryptocurrency and Blockchain, a big part of what has driven the crypto craze comes down to the fact that investing in cryptocurrency can be extremely lucrative.

Unlike other investment markets, there is a very low barrier to entry (all you need is an internet connection), and there is the unique potential to make A LOT of money in a short amount of time – if you know what you’re doing and have a bit of luck on your side, that is.

People have (and do) get rich off crypto, but like any investment, there is plenty of risk involved. You should do always your research before investing in a project and never invest more than you can afford to lose.

To find out if crypto investing is for you, click here. If you’re ready to get started, you learn about which crypto investing strategy is right for you.

In the scheme of things, the crypto market is still in its infancy. The last decade has shown how a crypto with very little proven track record can skyrocket in price due to the speculative interest in the utility it possesses. If you’re thinking about investing in cryptocurrency, we recommend getting the lay-of-the-land before diving in headfirst. And we can help.

At Digital Surge, we are committed to bringing crypto education to everyday people so they understand, invest and take full advantage of this exciting new resource that evolving at breakneck pace. Check out our education hub, Crypto Simple, to start your crypto journey off right.

A passing fad?

For over a decade, people have been saying that Bitcoin is nothing more than a passing fad. But to be honest, it kind of looks like it’s going in the opposite direction. Major institutions, governments and some of the world’s smartest, richest people are coming to and realising that the future of money is, like everything else, digital. Something to the tune of 2 trillion dollars now lives in Crypto-land. And this is just the beginning.

As we speak our financial system is being reimagined in ways that are hard to fathom. Faith in institutions having been waning for years and the desire for a better financial system is growing. Luckily, there is a very dedicated, very smart group of people making it happen. And they’re getting support from all the right people.

Final Words

The tide is turning. We are witnessing history in the making. Mainstream adoption and government and institutional interest are on the rise with no signs of slowing down.

While it may seem like the Bitcoin ship has sailed (which sceptics have been saying for a decade now…), we disagree.

When you consider the long-term potential and societal implications that cryptocurrency and Blockchain technology will have on the world, it is pretty clear to us that the party is just getting started. And it’s not too late to still be early.

At Digital Surge, we believe crypto is the finance of the future. Which is why we’ve created Crypto Simple, a Crypto Education Hub that demystifies cryptocurrency, giving everyday people the knowledge and tools they need to make the most of this exciting new asset class.

For the easiest way to trade over 250+ cryptocurrencies, check out Digital Surge – the no. 1 place to buy, sell and store crypto in Australia. With an incredibly user-friendly interface, extremely low fees & a customer-support team you can rely on, getting involved in crypto has never been easier. Sign up today and enjoy safe, stress-free trading.

The future of crypto is bright. We hope you’ll come along for the ride.

See you around!

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