CRYPTOCURRENCY AND ITS FUTURE
Cryptocurrency has gained popularity over the past ten years and is now talked about whenever there is a discussion of money, whether it be in person or online. This is because it has the ability to drastically alter someone’s financial situation overnight.
It is a digital currency that operates on the blockchain and is decentralized (not governed by a central body like a bank), making international transactions simple. Peer-to-peer trading is quick, efficient, secure, and anonymous. Like money, which is exchanged on the stock exchange, it can be listed on exchanges and bought and sold there. Because of its high volatility, the value can change dramatically.
Despite its influence and potential benefits, it is still not commonly accepted. We’re left wondering about the future of cryptocurrency since so many people don’t completely grasp it and because it’s still relatively new and has a lot of myths and people who have had unpleasant experiences with it.
Bitcoin being the most popular crypto and one of the stable profitable coins due to its volatility has a chance to lead the future and may determine the successes of some cryptocurrencies later. It is a source of investment for a lot of people to make money and secure their future with a platform for trading like Binance, WazirX, etc., to make a profit.
HISTORY OF CURRENCY
The barter system, in which products and services are exchanged between two or more people, was practiced during earlier times. For instance, someone might swap seven apples for seven oranges. Due to numerous evident shortcomings, the barter system lost favor:
• The needs of the parties involved must align; if you have something to trade, someone else must want it, and you must want what the other party is offering.
• Since not all objects can be divided, there is no universal standard for determining what something is worth. Instead, you must decide how many of your possessions you are willing to sell for other items. A live mammal, for instance, cannot be divided into smaller parts.
• Unlike our current currency, which can fit in a wallet or be stored on a mobile device, the products cannot be carried conveniently.
The money went through several modifications once individuals recognized the barter system wasn’t very effective: There was also the creation of an official currency, the introduction of gold-plated florins in A.D. 1250, and the usage of paper money from 1600 to 1900, which eventually extended to the rest of the world. This is the history of the creation of modern money as we know it.
Paper money, coins, credit cards, and electronic wallets like Apple Pay, Amazon Pay, Paytm, PayPal, and so on are all examples of modern money. There is a centralized regulatory body that sets restrictions on how paper money and credit cards operate since banks and governments control everything.
TRADITIONAL vs CRYPTOCURRENCY
Consider a situation where you want to send money online to a buddy who bought you an item as payment. This could go wrong in a variety of ways, including:
• A technical problem with the financial institution’s systems or improperly functioning devices could be the cause.
• Your or your friend’s account may have been compromised; this might have happened as a result of a denial-of-service attack or identity theft.
• Your or your friend’s account might have gone above its transfer limits.
The bank, or the central body in charge of the money, is the single point of failure.
The use of cryptocurrencies is the way that money will be used in the future. Imagine a comparable exchange taking place between two individuals utilizing a crypto-wallet app. For example, when someone is ready to transfer bitcoins, a notification asks them whether they are sure. If the answer is affirmative, processing begins, during which the system verifies the user’s identification, determines whether the user has the necessary balance to complete the transaction, and so forth. The money is then transferred into the recipient’s account after that. In just a few minutes, everything happens.
Thus, cryptocurrency eliminates all issues with contemporary banking: There are no restrictions on the amount of money that may be sent, your accounts cannot be compromised, and there is no single point of failure. More than 1,600 cryptocurrencies are accessible; some of the more well-known ones include Bitcoin, Ethereum, Sandbox, and a few others. Furthermore, a new cryptocurrency is created every single day. There is a significant likelihood that there will be a lot more growth given how much they are now undergoing!
FUTURE OF CRYPTOCURRENCY
How will cash be used over the longer term? Take a moment to picture yourself walking into a restaurant and scanning the digital menu board for your preferred combination dish. In contrast, it is stated to be worth 0.001 BTC rather than $1.00.
Cryptocurrency: Is it actually a more long-term form of payment? The answer to such a question depends on the broad acceptance of various crucial choices, ranging from basic usage to security and laws.
Every coin has two sides, as is commonly understood. Similar divisions exist when it comes to cryptocurrencies. On one side are proponents like Bill Gates and Al Gore, who believe that cryptocurrencies are superior to traditional currencies. On the opposing side are those who are against it, like Warren Buffet, Paul Krugman, and Robert Shiller. It is referred to be a Ponzi scam and a vehicle for criminal activity by economist Nobel prize winners Krugman and Shiller.
The two concepts of regulation and anonymity will clash in the future. Governments would seek to restrict the operation of cryptocurrencies because a number of them have been associated with terrorist incidents. On the other hand, the primary goal of cryptocurrencies is to guarantee user anonymity.
While it is believed that the first and most important component is trust, which is said to need to be created, a sudden surge in security issues, a failing technological environment, and other security problems can damage public trust in digital currencies. For instance, after TerraUSD (CRYPTO: USDT) crashed in April 2022, algorithmic stable coins gained a negative reputation.
Depending on which of these conditions is true, the revolution in digital currencies may be set back several years. And if it does, it might not at all resemble the revolutionary transformation brought on by Bitcoin in 2021. It is unlikely that any one nation or group of governments will be able to totally stop the growth of cryptocurrencies in the very long run, but they may be able to slow down the process and have a variety of different effects on the final product.
SCENARIO IN INDIA
But when it comes to India, the future of blockchain and cryptocurrency innovation is promising. The future will be fuelled by a variety of partners including:
• It will be used by India’s youth.
• The Government/RBI will be in charge of it.
• Super-innovative age with the ability to create it.
Despite the weaknesses in the laws governing cryptocurrencies, Indian cryptocurrency traders and developers remain very optimistic about them. This is due to the fact that cryptocurrency is just another innovation, and regulations for it will need to be made via investment.
A recent study found that the cryptocurrency business in India is expanding the fastest worldwide. India is the cryptocurrency industry that is growing the fastest globally, according to a recent report. Its development rate has been faster than that of some other countries in recent years, and it has done so at a rapid rate. If India continues in this way, experts believe it will have a significant impact on the development of cryptocurrencies.
Due to India’s vibrant local community and decision-making government, the future of cryptocurrencies in the country is looking fantastic. The Indian government participates actively. Web 3.0 policy is currently being developed by the Indian government. It must participate in global strategy development and adapt its plans to this fast-paced world in order to be a significant player in the global Web 3 economy. Indian WEB3 startups should fight with a generally secure administrative environment up until that moment.
Indian technological prowess is prepared to play a vital role in this industry’s global expansion. Over the past ten years, the Indian IT industry has experienced amazing growth and has attracted top talent from around the globe. 80 percent of the 4.4 million people employed in the Indian IT sector are computer programmers, and the sector will produce US$180 billion (or 7% of GDP) in exports in 2020.
My opinions on India and Web3 Cryptographic currency will eventually be part of Web 3.0, and as India leads the world in innovation, it should be at the forefront of developing a strategy for it. The fact that Cryptocurrency is fair, inclusive, and opens up financial access to more people globally may be the most significant factor in its success. Large institutions like banks view this as a threat to their own survival. Additionally, they stand to lose the largest transfer of wealth the world has ever seen.
The question still arises: “Do people have more or less faith in banks and governments with each passing day?”
Thanks for reading! Feel free to share your valuable thoughts below. ⬇️
🙏It would be nice to connect to me via my socials:
GITHUB || LINKEDIN || TWITTER || @iarchitgupta
Happy Learning !✨
