The Future of Crypto: Balance of Power by the Beginning of a New Decade
By Coinmatics on Altcoin Academy
This year, the blockchain industry — and cryptocurrencies in particular — has been experiencing rapid development. It is becoming more and more integrated into different aspects of our life these days.
The development of cryptocurrency is gradually causing the processes leading to the emergence of the global cryptoeconomy.
The growing cryptocurrency world is colliding with state interests, and we can observe how differently governments react: some are using the oppressive potential of their regulation bodies; some are being confused; the others are trying to adjust to the new conditions of technological development and to plan a modernization of their financial systems.
Corporations haven’t fallen behind either, and are taking steps that turning social media into competitors of the financial systems of the world’s major economies. The ongoing processes are making more and more people wonder what comes next?
As for now, we can distinguish three rival vectors of development, each of them can become the dominant one in the decade ahead and change the lives of millions of people all over the world.
The first approach can be characterized as “open finances”. These finances are provided by the companies building a natural cryptocurrency ecosystem and betting on stablecoins (often backed by fiat).
The endeavors of the companies create a basis for decentralized loan markets, which will help cryptocurrencies to open up new financial horizons.
Despite being decentralized, the category of players cannot be considered as free. To achieve sustainable development, they should cooperate with regulatory authorities and comply with the banking rules of the USA and the EU. Only in this case, they can have legal status and pursue the development of an open cryptocurrency market.
This variant can be called partially free, but it holds a possibility of natural development.
An alternative concept of cryptocurrency development is a centralized approach. China claims leadership in it.
In a completely supervised system like this, cryptocurrency will be an analogy of China’s internal Internet, which has been quite successfully developed during a few previous decades.
However, it is unclear how will it fit the rest of the Internet, in which global cryptocurrency processes are already developing.
One more approach is now being implemented by global corporations, the most profitable of which is Facebook. It is based on providing other players with a highly convenient and transparent technological platform, inside of which they can develop.
As in the case of open finances, the role of regulators and governmental control is highly important, but the interests of the host corporation set the direction for the development of the financial field. If successful, the corporation becomes superior to a government and is able to dictate the financial terms for the whole world.
These are the main players of the cryptocurrency development. Each of them has its own peculiarities and strengths.
Now we can already start watching the beginning of their fight: western countries are counteracting the development of open platforms using the possibilities of the Internet, while China is constructing an alternative system with the help of eastern wisdom and its already closed ecosystem, evading direct confrontation with existing trends.
It’s obvious that in the rivalry of the three, those who manage to secure the support of millions of people all across the globe are victorious.
It is us who are in charge of the future of the cryptocurrency industry.
Do we want to have an open financial system based on the free internet, confidentiality, and general availability? But it will most likely be unclear who defines the rules.
Or do we prefer a breakthrough rather than a horizontal model? But it will be due to the economy of China, which, in turn, will be defining the rules.
It is hardly an exaggeration to raise the question the following way: Can we allow the Chinese model of the Internet to become the main one?
Or what if we don’t want to deal with the regulation anymore? What happens if we hand over everything to corporations who are moving the whole modern economy ahead? That is to say, isn’t it better to entrust the development of cryptocurrency to those who will benefit from it the most?
Probably, none of these approaches will prevail, and the cryptocurrency giant will go on developing, forming three powerful financial streams at once.
Whatsoever, it is already changing our lives, and there is a lot of interesting stuff for us in the future.