Having faith in trustless decentralized financial systems, and building for blockchain, is one of the smartest things you could do.
My name is Mark and I developed Notional.Finance, a new DeFi application built on Ethereum. Join my Facebook group “6-Figure Blockchain Developer” to get the latest training on blockchain development for Ethereum — the largest Smart Contract platform on the planet.
Firstly, I nor anyone else can fully predict the future. But as a blockchain developer who believes in the conscious use of technology…here is how I feel about the future of crypto built on top of decentralized systems.
The name of the game today is “trust”. And if you listen to what people are saying, there’s a significant lack of trust in the financial systems that are in place today. That’s primarily due to the fact that these systems are controlled by just a handful of people.
And this handful of people have been profiting greatly, while the rest of us are starting to experience the repercussions of a damaged ecosystem.
That’s why looking deeply into crypto and decentralized systems is a wise thing to do. These are systems that are “trustless”. The trust we place in them with regards to how we conduct business transactions is built into code and available for everyone to see. There’s no need to trust a group of humans who are inherently fallible. And it’s all kept secure because everyone is financially incentivized to do the right thing in order to maintain the system.
Crypto built on top of fully decentralized systems is like removing the human ego, and the human penchant for power, from one of humanity’s greatest inventions: money.
It’s important to note that once you develop faith in the inevitable future of decentralized crypto, the next step is to drop the idea of “get rich quick”. Once you drop “get rich quick”, you’ll be in a good position to gain from a decentralized future in the long-term as you put your hard earned money into systems that are highly relevant in today’s “lack-of-trust” climate.
As you learn more about decentralization and crypto, and as you learn how to build for blockchain, you’ll gain a greater understanding of the inherent value of crypto built on top of fully decentralized systems. And you’ll start to see how its value far exceeds that of fiat currency.
You know what fiat is, right? It’s the word we use to refer to money that’s backed by the government. It simply means “decree”, and that dollar (or other government-backed currency) you have in your pocket is really just a piece of paper. It only has value because the United States government says it has value.
The only problem with fiat is that if you invest in it, you’re basically betting on the government that issues it. You’re gambling on the “full faith and credit” of your country’s government.
If you’re American, you should be aware that the debt of the United States government (as of June 26, 2020) is now $22 trillion.
Think about what happens when a government’s credit rating is no longer good. What happens when your government has borrowed too much and it can no longer pay its debts or keep up with interest rates on the loans it has received?
What happens is massive inflation of your government’s currency that you’ve worked so hard to save. One day, people of a country wake up to realize that nobody wants to lend them money anymore. And then they realize that their fiat currency has lost all its purchasing power.
I wouldn’t want to be in that position, and neither would you.
The value of crypto built on decentralized systems is based on the fact that it works, it’s secure, and no corporation or government simply decrees that it has value. Crypto is money for the people, by the people, and it’s “trustless”.
Once you realize the situation we’re currently in, and you see the future that’s almost here, you become empowered to make smarter investment choices. And better money can potentially lead to better and more equitable lives for all of us.
At the end of the day however, you still need to realize that crypto is just “numbers in a computer”. And while the value of crypto built on decentralized systems far exceeds fiat, it’s still just bits and bytes.
The real value we get as humans comes from the life support system on the planet. And at the end of the day the most valuable thing we could do is establish harmony with nature. Is there a way to connect our money to our main life support system? I bet there is…