[av_textblock size=” font_color=” color=” av-desktop-hide=” av-medium-hide=” av-small-hide=” av-mini-hide=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=”]
[/av_textblock]
[av_one_full first min_height=” vertical_alignment=” space=” custom_margin=” margin=’0px’ padding=’0px’ border=” border_color=” radius=’0px’ background_color=” src=” background_position=’top left’ background_repeat=’no-repeat’ animation=”]
[av_heading heading=’INTERNATIONAL ILONGGO ‘ tag=’h3′ style=’blockquote modern-quote’ size=” subheading_active=’subheading_below’ subheading_size=’15’ padding=’10’ color=” custom_font=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” admin_preview_bg=”]
BY JED JALECO DEL ROSARIO
[/av_heading]
[av_textblock size=” font_color=” color=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” admin_preview_bg=”]
ACCORDING to Statista.com, there were around 15 million blockchain wallet users during the third quarter of 2017. That’s about the population of a small country.
Now that Bitcoin has become popular, everybody seems wants to know more about cryptocurrencies. As of the writing of this article, Bitcoin’s value has gone up to almost S19,000, so it’s probably not a good idea to buy in this late. Much better to try other options. That isn’t meant as financial advice by the way. Just a general observation by someone who likes charts.
However, there is an element to Bitcoin that’s worth discussing, and that element is the fact that cryptocurrencies evolved outside state control. This is in contrast with most human history where most currencies were either subject to or controlled by one state or another.
Will states be able to eventually control cryptocurrencies? We’ll see.
Cryptocurrencies don’t need government regulation. They only need users and enough hardware. They are also completely electronic in nature, which takes financial transactions to their logical conclusion: If you buy things online then it’s easier to use an online currency rather than credit from converted paper and coin money.
Moreover, cryptocurrencies are completely anonymous, which is why they have the word “crypto” as their prefix. Transactions handled by cryptocurrencies don’t require receipts. They only need a blockchain wallet, and an internet connection. It’s all done discreetly.
In contrast, that paper and coin money in your wallet is subject to the control of the Banko Sentral, interest rates, fiscal policies and many other factors. They are also subject to real world economic realities. For example, if the Philippines’ economy tanks then the peso tanks as well. Such issues don’t affect cryptocurrencies, which are not based on any specific state economies, but online transactions in general.
However, cryptocurrencies are not without their weaknesses. For starters, there is the threat of government crackdowns. China, for example, banned initial coin offerings, which helped to precipitate the fall in prices back in September. Another point of vulnerability is reliance on the internet. Bitcoin is not going to be of much use in relatively isolated places in the middle of nowhere with no internet connections.
Cryptocurrencies exist parallel to real currencies, and the former acts as an alternative to the latter. The big question a lot of people are asking is if crypto-currencies will eventually replace their real-world counterparts, and the answer to that will determine the price of cryptocurrencies in the years to come.
Like many real-world issues, the best answer to this question is: It depends. It depends on the growth of the online retail market. It depends on the number of users who prefer cryptocurrencies to traditional currencies. It depends on the number of active internet users all over the world. It depends on whether or not governments will allow ICOs in their respective countries.
Personally, I don’t think that cryptocurrencies will replace real-life money, for the simple reason that it is an internet only currency, which means that you can’t use it to buy fish and vegetables at the dirty market. However, this doesn’t mean that it won’t continue to grow in the future, and such growth could undermine the strength of state and real-world currencies. (jdr456@gmail.com/PN)
[/av_textblock]
[/av_one_full]
