3 Problems Cryptocurrency Solves

Many ask what are the real world issues that cryptocurrency solves? What does it provide which will alter the course of our currency path?


Source

We also see the quest for the "killer DApp", an innovation that will instantly bring crypto to the forefront of humanity.

At the moment, Bitcoin, along with Ethereum, are blasting off. Much of this is speculation, especially since neither chain is capable of handling anywhere near the number of transactions the present system does.

That said, there are some solutions that cryptocurrency provides which is fundamental to forward progress.

Cryptocurrency Provides Liquidity

Markets require liquidity to operate. This is something that comes as no surprise to anyone. Those who traded know how difficult it is to be in a non-liquid market. It is hard to make any forward progress when liquidity is lacking. This can cause large drawdowns.

The same things happen to economies. This is especially true in those nations without thriving economies. Often, those populations are engaging in commerce with both hands tied behind their backs. They lack access to reliable banking services which puts them in a cash-only/barter type system. At the same time, they usually have to deal with corrupt regimes which make things even more difficult due to thievery. This normally results in a lack of confidence causing the currency to collapse, making the situation unbearable.

Cryptocurrency has the opportunity to add the require liquidity. Since all monies are directly in the hands of the users, the population could have uninterrupted access to their funds. This will allow for the free flow of commerce, outside the hands of corruption. A population could see the equivalent of millions of dollars pumped into their economy daily if enough people were involved.

Poorer nations are not the only ones who require liquidity. With a growing global population along with the economic impact of technology, extreme downward pressure is confronting the monetary system. Thus, an injection the likes that were never seen before is required. It is unlikely that politicians and central banks have the stomach for it. Cryptocurrency is the ideal lubricant for an economy that is often locked up due to a lack of liquidity.

Cryptocurrency Provides Economic Resiliency

The most resilient economies are those which are the most diverse. It is through this diversification of products and services that an economy can better weather the inevitable pitfalls that come about.

This is not true for those economies which are dependent upon a few products. Some rely upon bananas, oil, precious metals, or tourism. These economies are in trouble of there is a drop in global demand or prices crater.

Cryptocurrencies provide resiliency to those economies that are married to only a couple markets.

We see the industries that crypto is penetrating starting to expand. There are opportunities popping up on a weekly basis. Individuals are able to enter into a lot of different fields through the developments in cryptocurrency.

For example, SingularityNet is a blockchain based AI platform that allows anyone access to this technology. As the ecosystem grows, the AI projects that are developed start to work together. Countries that are lacking in AI development can simply join the network and make an offer for what is needed. All this is done through cryptocurrency.

Suddenly, some of the world's greatest AI experts are available to those countries that are dependent upon a few products. This could offer the opportunity to reformat their economy as individual businesses start to implement these tools.

This process can help to make the economy more diverse. When one market is hit, there are others to keep offering economic benefits. This wider breadth provides more stability.

Cryptocurrency Provides Exponential Growth Through Globalization

Globalization is often attacked for the pitfalls it generated on certain economies. There is certainly a downside to this, most notably on employment.

However, there is no doubt that having access to the global community is much better for those who are able to take advantage of it. For the most part, this was large, multi-national corporations. This is going to change as we enter the world of digitization.

An example of this is the local strip club. This is something that few think of in terms of globalization yet it does provide a great example of how things can change and the many benefits of global digitization.

Women who work in these types of establishments have a host of issues to deal with. They are usually in seedy parts of town, making the commute horrific. Safety is a concern since stalkers are always an issue. There is a limit to the number of potential customers since establishment can only house so many people. One has to rub up against guys all night long, most of whom make her want to vomit.

All of this does not make for the most pleasant of work experience.

Now let us contrast that in the digital world. There are now platforms (digital clubs) where women can go and perform in the privacy of their own home. This eliminates most of the issues just mentioned. It is something that one can do, anytime of the day since there is a 24/7 audience. Instead of doing a dance for one person for 10 minutes, it is possible to do it for 100.

Best of all, it is not all sexual. People pay for all kinds of things, including having one polish her toenails. Whatever the ilk, it is out there.

This is just one area where digital platforms provide an improved experience. Where cryptocurrency comes into play, other than as a low-cost payment system, is the fact that crypto-economic platforms are entering many industries. Over the next few years, we will see a transformation taking place as platforms are set up based upon cryptocurrency and blockchain.

The result will be expanded markets for individuals entering these different types of digital realms. At the same time, because of the peer-to-peer nature of things, people will be able to keep a larger portion of their money. Just like YouTube takes the biggest chunk of money generated by its content creators, most centralized digital platforms do the same.

Cryptocurrency changes this. It puts the content plus the financial benefits derives by it in the hands of the creators. This means that people will end up having more of what is generated as compared to what is presently taking place.


These are some basic issues that will have a major impact as cryptocurrency expands. They are present day problems that we are addressing right now.

This is something that most are overlooking.


If you found this article informative, please give an upvote and rehive.

gif by @doze

vision2025.png

freedom.png

Posted Using LeoFinance Beta



0
0
0.000
39 comments
avatar

Your current Rank (24) in the battle Arena of Holybread has granted you an Upvote of 19%

0
0
0.000
avatar

pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 32 of my contest just started...you can now check the winners of the previous week!
!BEER
7

0
0
0.000
avatar

Vice of one sort or another is an obvious use case for cryptocurrencies as payment systems. It's already a huge part of online gambling. Sex work is another example. There are many web platforms that function as online strip clubs and many like PornHub. Many of those accept cryptocurrency as payment. The anonymity or pseudonymity of cryptocurrency is sought after by many. Fiat is problematic as a payment system in these cases because of the risk of hacking and having one's identifying and credit card information stolen.

What would be very interesting to see is a PornHub type of operation being implemented as a DAO.

Posted Using LeoFinance Beta

0
0
0.000
avatar

What would be very interesting to see is a PornHub type of operation being implemented as a DAO.

Without a doubt. I wonder what kind of cut the platform takes. I would imagine it is a substantial amount. Having something like that as a DAO would allow for peer to peer transactions while giving people the ability to monetize what they are doing without the "middleman".

Posted Using LeoFinance Beta

0
0
0.000
avatar

When people talk about cryptocurrency, they forget to mention the underlining technology that makes cryptocurrency worth anything--blockchain technology. one major selling point of blockchain is pure ownership.
For the stripper example, there are centralised services that are digitalized but don't offer the stripper ownership of her platform. This problem is solved by decentralised platforms where people can sell their services and still retain ownership of their platform.
Imagine what this would do in the gaming industry. it's happening already on splinterland, people own the cards they buy and can do with it as they see fit, unlike most centralised platform where you are given a license to use the tool you purchase and you can easily be kicked out if they so please. This gives even non-pro players the opportunity to earn from their gaming activity. The opportunity is endless.
ownership is a big deal. Possible the most appealing thing about cryptocurrency/blockchain technology.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Also with gaming, once you leave the platform, all that you bought ends up as gone. With Splinterlands, the cards are resident in a wallet, not on the gaming platform.

For the stripper example, there are centralised services that are digitalized but don't offer the stripper ownership of her platform. This problem is solved by decentralised platforms where people can sell their services and still retain ownership of their platform.

Without a doubt the ownership of everything is changed by blockchain. Not only is it money but also data, images, content, and whatever else gets tokenized.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Cryptocurrency Provides Liquidity
Markets require liquidity to operate. This is something that comes as no surprise to anyone. Those who traded know how difficult it is to be in a non-liquid market. It is hard to make any forward progress when liquidity is lacking. This can cause large drawdowns.

So true, we have a hidden global deflation at the moment. That is why everyone is pouring loads of money into the economy, to counter it. Money was never so cheap, so this is why we have this vicious cycle that everyone takes it and we need more, without having enough liquidity circulating.

And yes, Cryptos can bring enough liquidity, also with a certain value behind them.

Posted Using LeoFinance Beta

0
0
0.000
avatar

There are also the ongoing technological trends which are only becoming a larger portion of the global economy. This is also extremely deflationary, requiring more money.

Posted Using LeoFinance Beta

0
0
0.000
avatar

True!

Inflation is bad, deflation is worse. Look at the lost decade in Japan. As the world runs with the economic handbrake pulled, we will need even more money, that will become worthless at a time. Who will pay the bill in the end? Mostly we, I suppose.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Look at the lost decade in Japan.

Lost decades in Japan. That said, the average Japanese individual lives better today than he or she did 3 decades ago. We see how deflating of prices helps people.

Inflation is bad, deflation is worse.

Neither is good or bad. They are part of economic and monetary cycles. For the last 4 decades, in the US, we are in a deflationary supercycle. The is no doubt that life has gotten better for the average person in many ways.

Hyber of either is very bad and we could be facing hyper deflation without the money printing. When you look at the advancements being made in AI and the deflationary impact, we could see a time when this becomes a reality if not addressed.

Sadly, most are still stuck in the 1970s mindset that all this money printing will lead to inflation. Record deficits around the world by governments and we still see major economies contracting. The velocity of money is about zero at this point.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Neither is good or bad. They are part of economic and monetary cycles. For the last 4 decades, in the US, we are in a deflationary supercycle. The is no doubt that life has gotten better for the average person in many ways.

Yes, for the average Joe the life got better in so many ways, from healthcare, to infrastructure till possibilities of achievement in life.

I mean that deflation is worse than inflation as it breaks the economic in all it's aspects. We see it now with the printing press working 24/7. It fights deflation, period. With technology advantages we will need to reshape the thinking of economy, as there will be a lot of surplus on the market. I'm not worried about this, as with new technologies(AI, crypto, etc) there comes also new chances. 100 years ago people were still sending post by horses and no one could imagine the e-mail we have today. A lot of industries have vanished and will vanish also in the future. The thing is to do wise choices now, expecting the next industry that will rise. Crypto is one as it disrupting banks and state issued currencies.

Posted Using LeoFinance Beta

0
0
0.000
avatar

We see it now with the printing press working 24/7. It fights deflation, period.

They are trying to fight it..thus far it is a losing battle. Of course, they are not printing nearly enough to offset what is taking place.

I mean that deflation is worse than inflation as it breaks the economic in all it's aspects.

The difference is that, with inflation, the central banks can fight it easily. There is a way to stamp it out in a few second, simply raise interest rates. That crushes inflation in a moment. Of course, it takes the entire economy down with it.

100 years ago people were still sending post by horses and no one could imagine the e-mail we have today.

It is so true that we cannot envision things 100 years ahead of us. However, today I believe that we cannot even view what will be around in even 30 years. Things are simply moving at too quick a pace.

Ultimately, economics will have to be altered to embrace the new technological reality. Unfortunately, economists do not thoroughly understand the technological impact upon their field.

Posted Using LeoFinance Beta

0
0
0.000
avatar

It is so true that we cannot envision things 100 years ahead of us. However, today I believe that we cannot even view what will be around in even 30 years. Things are simply moving at too quick a pace.

With Covid19 we gained 10 years of advantages in technology. Even if it sounds macabre, it is the same technological advantage we gain in wars, where money does not matter anymore. I can't see in 5 years time what it would be.

Ultimately, economics will have to be altered to embrace the new technological reality. Unfortunately, economists do not thoroughly understand the technological impact upon their field

Well, I see economists vanish like lawyers do. AI will beat them in almost every field. Law is an industry that is now changed as no one can learn so many laws and find so many data with correlation to a case.Same for economists, they will not be able to predict what AI can analyze. The work field will need data analysts, who can insert and read data coming from AI.

Thanks for the replies and the discussion.

Posted Using LeoFinance Beta

0
0
0.000
avatar

With Covid19 we gained 10 years of advantages in technology. Even if it sounds macabre, it is the same technological advantage we gain in wars, where money does not matter anymore. I can't see in 5 years time what it would be.

I am not sure it was 10 years but certainly we pushed things ahead a few years due to COVID-19.

Well, I see economists vanish like lawyers do.

Economists should disappear already, all they do is academia anyway.

Posted Using LeoFinance Beta

0
0
0.000
avatar

What I really love about Blockchain and cryptocurrency is the possibility of being able to send money anywhere in the world, often without taxes or with very small commissions, quickly.

to do all this all you need is a mobile phone, not even the latest generation, and an internet connection. this is what I call the WOW effect!

Posted Using LeoFinance Beta

0
0
0.000
avatar

Most centralised digital platform takes the money of people and give them stipends while storing a huge portion for themselves as well. I feel this is one aspect where crypto is Likely to influence the most. Creating wealth sometimes experiences disparity and there's a gulf in class because of unfair distribution. This will change and it feels so exciting.

Posted Using LeoFinance Beta

0
0
0.000
avatar

The ability to rework platforms and the ownership of different assets as well as cash flow is one of the best parts of blockchain. It really does change the entire ownership sitution.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I think that of the three problems cryptocurrency solves here, as you stated, point number one is my favourite. Cryptocurrencies will do better if the problems associated with volatility is solved, perhaps through more exposures to stable coins.

0
0
0.000
avatar

Volatility is also reduced the larger markets becomes. Thus, as Bitcoin, for example, keep growing in total value, the volatility should subside over time.

Stable coins will serve a big role going forward.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Correct findings and I totally agree with that. 👏 However, we are still waiting for a crypto global breakthrough.

0
0
0.000
avatar

However, we are still waiting for a crypto global breakthrough.

Without a doubt we are. The masses are not even close to joining in this game. It will be a while before we see that.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Bitcoin and Ethereum are currently popularity gateways to bring the rest of the cryptomarket to mainstream status, and they are doing their job well on that front. I think.

The liquidity reason is an important one, especially on use cases like Hive. A large part of encouragement for using crypto currency services comes from all the financial restrictions in corrupt and or developing countries who are disconnected in some form or another from the "civilized" world. This enables anyone to access foreign funds without having to give a huge cut to a service like western union or something.

I liked the example of the women. Made perfect sense.

0
0
0.000
avatar

Bitcoin and Ethereum are currently popularity gateways to bring the rest of the cryptomarket to mainstream status, and they are doing their job well on that front. I think.

It is evident that both those cryptocurrencies are leading the way. Will they be gateways? Only time will tell. We can see how more money piling in will have some searching out other alternatives. Perhaps Hive can benefit.

The liquidity reason is an important one, especially on use cases like Hive.

The fact that Hive is fast and fee-less is invaluable. Few realize how much money is generate through money remittance. The fees are atrocious.

Hive offers a way that money can be sent without any costs incurred to the sender (or receiver).

Posted Using LeoFinance Beta

0
0
0.000
avatar

They are a kind of gateway right now at this moment, but the future is a toss up. In terms of technological advancement and transaction speeds, bitcoin is last years news, but it has a certain name value to it that it will hold for a while I think. But as you said, time will tell. Just like how a floppy disk was at some point in time considered the pinnacle of portable data storage.

Hive offers a way that money can be sent without any costs incurred to the sender (or receiver).

As does any other well-executed system on a blockchain or distributed ledger.

0
0
0.000
avatar

Great points. Overall crypto is leveling the playing field in finance. Access for all regardless of country of origin.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I don't want to play too much "Devil's advocate" here, so I'll just leave it largely agreeing with your points, with the caveat that all industries tend to be extremely turbulent in their infancy... which is basically where we are.

I have never quite been able to shake feelings I have had since first learning about Bitcoin around 2013, that cryptocurrencies are as much "a solution looking for a problem" as vice-versa. We seem to poke at the edges of solving global/universal issues, but we haven't created de-facto large scale solutions that are readily implementable on a large scale. Paradigms change when large scale adoption of a new technology simply replaces the old technology because it is better than the old way.

One of the biggest challenges for crypto mainstreaming is finding that delicate balance between "decentralized" and "fragmented." What I mean by that is that people prefer things to be really simple with zero learning curve. Like take our microcosm called "Hive." The biggest block to growth (in my opinion) isn't the price of the token, or lack of engagement, or spammy posts, or circle jerks... but that people expect "Log in with Facebook and start creating" levels of ease-of-use, and then "all their shit" is right there without needing to use different keys, different apps, pictures here, video there, audio somewhere else, blogging in yet another place. I've tried to pitch Hive to people, and when I explain it, they see it as going backwards (in terms of ease of use) not going forwards.

But I digress. What you outlined is definitely where we can start "staking our claims." But it's really important — basic consumer/industrial psychology — to remember that we need to bring people what they want, not try to "force people to want what we HAVE."

=^..^=

Posted Using LeoFinance Beta

0
0
0.000
avatar

The biggest block to growth (in my opinion) isn't the price of the token, or lack of engagement, or spammy posts, or circle jerks... but that people expect "Log in with Facebook and start creating" levels of ease-of-use,...

I agree with this 1000%. It is the holdup to Hive. In 4 years, we did little to progress along the ease of use scale. We are still in a very "techy" realm which is not where the masses operate.

...to remember that we need to bring people what they want, not try to "force people to want what we HAVE."

This is also a point I feel vital. It is why I always felt that Layer 2 solutions are what need to be developed and marketed. Bringing people in at that level does so because "they have an interest*, not because of Hive.

I have never quite been able to shake feelings I have had since first learning about Bitcoin around 2013, that cryptocurrencies are as much "a solution looking for a problem" as vice-versa.

That might have been accurate, although things changed greatly since 2013. We have a lot of issues that cropped up since then. I think the liquidity issue is something that is much bigger today than it was 7 or 8 years ago when the technological impact on the global economy was less. We also hear talk about censorship which, while perhaps not horrific at the moment, is going to get worse as time goes by.

Also, the limitations of Bitcoin are being surpassed with newer technologies. Bitcoin does have its place in my opinion as a store of value. Beyond that, I still dont see a great deal of use cases for it.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I may not be as optimistic here. I only see really like immutability censorship resistance. Which i don't think many people that concerned about right now. Most people i know dying to reveal their identity to the world lol. You can't stop them they like the kardashians.

I mean there are peer 2 peer networks i believe we can do the same. I don't know if i'm sold on we're going to have every business in existence operating on the chain and you own a portion of everything. That sounds pretty good in some ways. I just don't think feel certain businesses or the idea everything needs to be on the chain is true. Many prefer video hosting and in some cases music etc., not be on the chain.

Gaming i can't really speak to that i'm not big into games. Maybe something in the future happens all the kids make a living as professional gamers. Idk but for right now It's probably like one thing the blockchain does well. I'm hunting down this documentary about bitcoin and why business doesn't work on the blockchains that like jimmy song and tone vays are in... if i find it i'll try to post it to the thread. it brought up many good points..

Posted Using LeoFinance Beta

0
0
0.000
avatar

if i find it i'll try to post it to the thread. it brought up many good points..

If you do find it please post it, I am looking forward to seeing it.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Wow i been looking for this video for months. I tried many searches never came up.. I hit right on it today good deal. Yea i'm not trying to kill dreams here. My entire thing is about education and making sure people got the tools they need. Whereas the deal with the bitcoin maximalist is he wants everything to be done in bitcoin which it can't be .

The altcoin guy has his heads up in the clouds. So i sit back and i try to decipher what's valuable from what's not really. So often times i go well ubi is because first i know many people going to care about it.. I know the vendor and the merchant even if the ydon't care about it. They will carry the wallets to faciliate the large amount of wallets that have it for trade of their new economic stimulus. So that makes sense to me.. Well anyway maybe this will shed some light and reasons on why maybe business models may not work on the chain.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I wanted to add that it probably really gets into it after about minute 3. The first part if an explanation of basic functions of bitcoin. However it's so interesting as he's so negative about logistics on the chain.. food and many uses many of us would consider good use cases.

He talks about how developers get so rich creating all these ideas about what should go on the chain. The products lose 90% of their value lol. The only one who's seemingly not done that and just about recouped all its value is bitcoin. So i think we have to be careful about what we expect from the blockchain and where the focus should be.

Not saying altcoins won't make money. The developers build projects that make them rich just lose us our money lol. So although Jimmy does touch on most of what i was talking about .. this is part of a bigger documentary about an hour or so long that actually shows businesses that tried to leap on the blockchain hype train.

I think with our project in a very trumpian way we go we'll build a ubi platform and bitcoin will pay for it". However that's very carefully thought out. As our first approach is not to dilute bitcoin in which some products it's arguably they do. Some people believe altcoin dominance in a way can do that. So with us you don't buy our coin at all unless you're just a speculator. We match to the bitcoin ledger and if you own bitcoin and can prove it.. You get bitcoin myk in relation to that. Now what we happen to do is i think in bitcoin cash only about 3 million coins were claimed if i'm not mistaken. So we pay for our ubi with unclaimed coins but where we're different is we honor claims at anytime but there is a transactional fee.

The point i'm trying to make and why this is all important is that if our philosophy is correct the ubi network effect will outgrow the btc network effect. Thus we believe we'd be more valuable and we'd also be more rare as we reduce coins at a rate in a similar fashion to the bitcoin halving. So all this is important because we're saying the line between us and bitcoin doesn't change much like what you get with altcoins. So whether Jimmy Song is correct or not in his assessment i believe not only is bitcoin myk a more harmonius product but its a more likely to work product in my opinion.. So i may find the complete documentary but that was the most important part of it.

Posted Using LeoFinance Beta

0
0
0.000
avatar

The example of the strip clubs was very eye opening. It made me realize that a lot of unexpected businesses could convert to remote and online, fueled not only by cryptocurrency but also by the many societal changes brought about by the pandemic. Now tattoos, massages and pedicures... those presumably will always happen in brick-and-mortar stores. But so many other things could shift. If groceries and restaurants can, then it throws the door wide open. We're really just at the beginning of the trend, and as someone said in the comments, the pandemic has really pushed technology further, faster. We have to adjust out of necessity, but I believe this era will accelerate innovations in how we live, work, and do business. Like "going to" the doctor, or getting an eye exam. Why are so many people jumping into vehicles to go here, there and everywhere for services that could be done from a laptop or mobile phone?

By the way, you might want to change out the header image you used. It's covered in watermarks, which means it's copyrighted. 😃

0
0
0.000
avatar

Whenever people talks about the cryptocurrency they always thinks of the bitcoin and digital payments only. Their are so many things a crypto word can do. Their are so many projects working on the real life problems and people need to be educate bout them.
You have mentions very valid points, thanks for sharing....

Posted Using LeoFinance Beta

0
0
0.000
avatar

like YouTube takes the biggest chunk of money generated by its content creators, most centralized digital platforms do the same.

Youtube is fucked up... it literally gone from worse to worst

Cryptocurrency changes this. It puts the content plus the financial benefits derives by it in the hands of the creators. This means that people will end up having more of what is generated as compared to what is presently taking place.

Although, i mostly agree we need to see what are some issues that we are gonna face as well. For example, Will the financial benefits derive from the hands of the creators or those who will have more stake in a certain platform?

Posted Using LeoFinance Beta

0
0
0.000
avatar

THE problem is that not all people are familiar with private key and how to secure wallet. Big news about hacked exchangers create misconception about cryptocurrency

Posted Using LeoFinance Beta

0
0
0.000
avatar

I like the saying that computing power is the new gold. I don't know where I heard it but it sounds cool. I think we're all early adopters of this new power of the 21st century.

Posted Using LeoFinance Beta

0
0
0.000