Digital Currencies: What Are They Good For?
Those not invested in the space look at Bitcoin and other cryptocurrencies and say: it’s just a bubble. Speculation. There is no value.
Are they right? Are these cryptocurrencies any good?
In the 90s, Internet was the big thing. Everyone bought into the hype. The promise of a world wide web of information turned many into speculators. Thousands of companies were launched, and as the dotcom bubble erupted in the 90s — many came crashing down.
So was the promise of Internet a fraud? Hardly.
Both Amazon and Google were formed before the crash. They not only survived but became economic juggernauts.
The promise was real, the hype was not.
The same is true for cryptocurrencies and digital assets. There is a bubble in the ICO space and it will burst. But in a 10 year timeframe, Blockchain will revolutionise the global economy in ways we can’t imagine yet.
So, what’s a digital currency good for…right now?
Digital Services
The global digital economy is rooted in peer-to-peer transactions; frequent, small-value payments, often across borders.
e.g
$40 for a graphic design.
$150 for a wordpress website.
$5 for gardening tips via Skype.
$100 for financial advice from an Investment Banker.
And so on. Now you can get paid without having a bank account, PayPal or credit card.
And how difficult is creating a Bitcoin address? It takes a minute and no identity verification required.
Money Transfers
You work in Canada and you have family in Mexico, Namibia or Philippines. You want to send $1000 every month. Sending this money costs roughly $80 to $180.
With Bitcoin, this cost is close to nothing. Currently, you still need to convert back to your local fiat currency and that has cost…but once you can use your cryptocurrency to pay for many things — you won’t need to convert. Just save and spend.
Investment
Sitting in Mongolia, you cannot invest in the NYSE. Sitting in Chile, you cannot invest in the London Stock Exchange. And so on.
But sitting anywhere in the world, you can invest in a blockchain asset. This asset could be Bitcoin, Ethereum, Zcash, Monero, Steemit or Litecoin. They may have “real usecases” or they may simply be a “hyped up token”. But the fact is…that anyone, sitting anywhere, can invest.
It’s the same as advertising was before the Internet of information came along. Everyone could not place an ad in The New York Times. But everyone can, and does, advertise using Google and Facebook.
Investing is getting democratised and globalised at a massive pace. This will only continue and it will also create incredible opportunities for turning your small savings into a potent nest egg.
Finally
It’s a bubble, but its not fake. It’s the real thing. Ignore it and you will still embrace it — just a little later.
