Too High Hopes for Cryptocurrencies, Sweet Blockchain Dreams

Financial services are reaching their brand-new level. However, the reason for the revolution in the financial world has nothing to do with Bitcoin or any other blockchain-powered solution. The remarkable progress stems from big data, IoT, and AI.

By now, a good many renowned companies are choosing these modern advances to get rid of any kind of excessive services. Such web-based financial operators as Alipay, Paypal, WeChat Pay to name a few, provide millions of users with access to convenient and quick payments and banking.

Meanwhile, lenders are generating accurate responses to applications filed for loans on the fly instead of lingering for days and weeks – all due to the immediate availability of corporate and private credit history data, funds etc. In the long run, experts predict, those information-powered developments for loan assignments are to prevent and finally eradicate financial surges and crises.

Accuracy is growing in risk assessment, insurance applications review and handling, tracing fraud and such like tricks. Bots perform the jobs of stock trading advisors managing client portfolios. Robo-advisers prove to complete those tasks with at least the same, often higher, efficiency than old-fashioned consulting agencies.

Such advances in FinTech totally override that of the blockchain. The blockchain promoters refer its current stage to the world wide web in its cradle. This line rather misleads as the world wide web quickly conquered millions with such numerous handy features as email, online stores, and other .com ventures, while blockchain has just one relatively wide adopted implementation - cryptocurrencies. Even Bitcoin, once revolutionary digital money, does not abide by its promises.

As Bitcoin has been declared a freely convertible currency it should have been a viable accounting unit, routinely used in ongoing transactions and providing a stable store of value. Not a single of the above fulfills. Bitcoins are anything but for pricing. Traders, in general, do not accept it or set prices in BTC. As to store of value, you would hardly invest into something which price often varies within a range of 30% during a trading day not to mention longer time intervals.

The basic assumption underpinning most cryptocurrencies is wrong. Bitcoin advocates usually appeal to its featuring a fixed emission of twenty-one million coins. Thereby, unlike national currencies, Bitcoin offers a limited supply of monetary units. A closer look reveals the statement is obviously misleading. Bitcoin has already split. We have now Bitcoin Gold, Litecoin, Bitcoin Cash and even more forks. Apart from that, dozens and even hundreds of new cryptocurrencies surface on a daily basis. So forks and the steady arrival of new crypto-money provide excessive supply and debase it faster than any central bank.

The reason for buying crypto is not about using Bitcoins or their counterparts for routine spending and transfers. People hope the cryptocurrencies will grow in value. The actual use of Bitcoins in everyday transactions is virtually impossible. Bitcoin is so high in terms of fees and energy involved in their generation that even conferences do not treat Bitcoin as an acceptable payment method.

So far, the main users of Bitcoins are crooks utilizing the currency to buy drugs, accept payments from hacked users, especially in the ransomware attacks, avoid taxes, etc. Predictably enough, leading world countries are taking measures to bring the blockchain-based monetary systems under their control by ordering to disclose the identity of the parties involved, thus eliminating the key advantage of anonymity.

Money emerged centuries ago. Through ages of there has never been a system that would include thousands of simultaneously circulating currencies. All in all, money is a vehicle for trade aimed at avoiding the complexity of goods-to-goods deals. The number of currencies in circulation was always restricted be economic conditions that balanced their value.

Using multiple currencies within a single economy would badly aggravate its performance. For instance, U.S. economy does not use peso or pounds together with the dollar. A variety of currencies functioning in one place is not a solution to be adopted by any economy.

It is also silly to expect that any given kind of cryptocurrency alone is capable of replacing currencies emitted by central banks. Cryptocurrencies move toward decentralization and governments centrally issue money, collect taxes, etc.

A sound idea suggests abandoning the utopian cryptocurrencies and relies on trusted financial operators providing evidence-based, techie solutions and doing their best to incorporate real advances in technology into the financial industry. Odds are that those guys cannot double your investment in a week, but they are going to slog away ensuring the security while increasing the investor’s gains.

Views: 59


You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

Latest Activity

Nazda Pokmov commented on Boris Badenov's video

Aussie transgender athlete banned from women's league | 60 Minutes Australia

"That's one BIG pretend GIRL!!! LOL  He needs to sign up for the men's league!!"
1 minute ago
Nazda Pokmov commented on cheeki kea's blog post UK school children to be taught 'boys can have periods too'
"The UK is so messed up as it is and now this garbage being foisted upon the little kids.  Men are Men and not able to have "periods" and neither are trannys able to have periods.  WTF?  Anything to push the perverted fraggot…"
7 minutes ago
dogitydog commented on Boris Badenov's status
"Try that in front of me mother fucker!!!"
8 minutes ago
dogitydog commented on Diana's video

DSA Queer Socialists' Nude Dancing Unicorn-Man Teaching How Capitalism Suppresses The Queer Impulse

"Unicorn Man? It appears to be gender neutral. Although, being a unicorn and all I guess it can still satisfy it's queer tendencies as long as it can find someone that wants a spirally horn shoved up their ass."
12 minutes ago
dogitydog commented on cheeki kea's blog post UK school children to be taught 'boys can have periods too'
"Warning to all snowflakes: If there is blood dripping from your penis, YOU ARE NOT MENSTRUATING, GO SEE A DOCTOR!"
26 minutes ago
jim posted blog posts
35 minutes ago
dogitydog commented on cheeki kea's blog post UK school children to be taught 'boys can have periods too'
"GTFO! That's it, we are done as a legitimate species. There must be a level of stupidity that gets you kicked out of the universe to prevent contamination of other life forms. Surely we have reached that level."
38 minutes ago
dogitydog commented on the mighty bull's blog post Police to compensate grower after raiding legal hemp farm on the East Coast
"Idiots. Shoot first, ask questions later!"
43 minutes ago
dogitydog replied to Chris of the family Masters's discussion The Concept of Modern Day Slavery:
""This truly is a sad situation for good people and once you become aware of how utterly corrupt and dogged the system is, you then must live with such disturbing knowledge but not having the ability and might to correct it. To make a stand for…"
47 minutes ago
Diana commented on cheeki kea's blog post UK school children to be taught 'boys can have periods too'
""menstruation must be inclusive of all genders" Sure, if the gender has a uterus.  Insanity."
56 minutes ago
Boris Badenov favorited Diana's discussion Members of Congress Will Now Have to Personally Pay to Settle Sexual Misconduct Claims
57 minutes ago
Boris Badenov favorited Diana's discussion Obamacare Thrown Out by Judge, Raising Insurance Uncertainty
57 minutes ago
Boris Badenov favorited Diana's discussion Venezuela Is Such A Socialist Hellhole That Families Are Burying Loved Ones In Plastic Bags
57 minutes ago
Boris Badenov favorited jim's blog post Welcome to the Future ! GROSS.... Tasting the World’s First Test-Tube Steak
59 minutes ago
Diana commented on Burbia's video
1 hour ago
jim posted a status
"Very Beautiful Enjoy!"
1 hour ago

Please remember this website is supported by your donations...

© 2018   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 2007-2015 - all rights reserved. unless otherwise noted