Cryptocurrency is Here – And It’s Frightening

Most people who purchase a home or a car, or purchase things on Amazon, never think about “paying” with the digital currency. Most people have no awareness how many digital currencies there are (over 1,000), though a lot of people have heard some information about Bitcoin.

Very few people comprehend that cryptocurrency is an instantaneous currency, a speculation and a technology: you can buy a house with digital currency, speculate with some of your retreat money in digital currency (and eventually invest in cryptocurrency ETFs), and capitalize in cryptocurrencies primary technology (blockchain).

Amazingly, banks are cleverer than politicians about digital currency, and many individuals and startups are keen than the banks. The rise of digital currency is incompletely analogous to the rise of medical and recreational marijuana. How long will it take “authorized institutions” – banks, companies and the government – to discover cryptocurrency chances – and threats? Their finding journey is already well underway.

What do you need to know about cryptocurrency?

Identify theft is principally impossible with cryptocurrency.

It’s possibly nefarious: money make legal, among other transactions, is easy.

Governments cannot control it – though they can – and will – regulate and tax it (principally through investment instruments).

It’s available and immediate.

More and more businesses will accept it – because they will have no choice.

It’s volatile: the value of Bitcoin and Ethereum, for example, have swung wildly over the past couple of years.

It’s facilitated by a technology named blockchain, which according to Portia Crowe provides an alternative to traditional deal processing: “Blockchains are ledgers (like Excel spreadsheets), but they receive inputs from lots of diverse parties. The ledger can only be altered when there is a consent among the group. That makes them more protected, and it means there’s no need for a central authority to support transactions.” […]

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