But what most cryptocurrency fanatics like you miss in explaining cryptocurrencies, what problem are your fixing with cryptocurrency?
Internet was fixing the problem that information couldn’t be shared across the entire world and published globally. Furthermore it made worldwide communications way easier. A clear benefit when you compare it to books, telephones and the post.
But what does cryptocurrency do? Make the current financial system that everyone understands (to the extend that they need to understand) and that works great in the western world more difficult and place it somewhere without governance so it will become the wild west again. Don’t get me wrong, I find the invention of the blockchain technology very interesting and it will be a game changer in some areas but I don’t see the added value as a currency.
For example for the replacement of a notary, by making it the system for registering who owns what piece of land for instance, it makes tremendous sense. The costs can go down quit a bit and the reliability can go up, so a great benefit. It could also work as a background currency for banks, so international transfers of money could be sped up.
But why should my grandma learn how the system of crytocurrencies work and use the cryptocurrency itself? We already have a system with digital and anolog currency side by side. We already have a limited number of currency in the system, that is controlled by central banks. The central banks are important in our current system to steer the economy in the right direction. Cool it down when it becomes overheated and fire it up when it cools down. Without that steering the crisis that would occur will only end after a system meltdown like when there is hyperinflation in the current system. I can use my digital money all around the globe and convert it to cash money in ATM’s around the world. I live in Europe and can easily buy Chinese goods directly at the Chinese stores. The iDeal payment system reserves the money from my account immediately and notifies the seller that they can safely send the goods to me. Off course there can be improvements in our current system like sped up payments and more verifying of the counterparty but overall the system works just fine.
What will a cryptocurrency with private keys, storages on USB and local verifying add to my process? What game changing effects will there be on my everyday life? Please enlighten me because I can’t see it happening with the cryptocurrencies that are available now.
