Considering the fact that the main purpose of the blockchain was to facilitate transactions and ensure transparency, it should be said that this type of technology has revolutionized the world. Consequently, there is a greater possibility of a decentralized financial system.
This is the underlying tenet of the blockchain and cryptocurrencies as the main purpose is to create a monetary system in which users could be free to conduct business without having to go through the supervision of a government and its monetary agencies.
Naturally, this is a revolutionary concept as governments have cracked down on activity that is outside of its jurisdiction.
The internet is a truly vast domain in which a single institution is unable to regulate the entire number of transactions that take place.
Additionally, traditional fiat currency, even when it’s used in digital format such as through e-banking, still has its limitation. For instance, it is practically impossible to issue new currency as needed, particularly when the volume of transactions picks up. This is a key factor that has limited the growth of business. And while governments can just issue as much currency as they want at a stroke of a pen, it’s really not that easy. There are checks and balances that must be met in order for currency creation to take place.
Moreover, currency reaction is not an act that reflects economic logic. Most of the time, monetary policy reflects political issues and considerations. As a result, monetary policy tends to be restrictive and works on a lag.
On the whole, the decentralization of currency makes it possible for individuals to conduct business freely. This implies that accounts and transactions can be settled publicly and transparently without having to limit the number of transactions.
Crypto’s biggest detractors claim that cryptos lend themselves to corruption and crime. For example, terrorists can negotiate dealings by using cryptos. After all, they are anonymous as they don’t require a passport for a transaction to be verified.
However, this has yet to be proven on a public ledger network. If anything, such shady transactions happen on the deep web. In this domain, there is literally no control or regulation. Nevertheless, the average citizen will never go anywhere near the dark web. So, it’s safe to say that for now there is no shady business going on.
The main grievance that governments have with blockchain technology is that these transactions are not susceptible to taxation. This implies that accounts can be settled using cryptos without any proceeds going to the government in terms of taxation. This is why efforts are being made to find a means of taxing transactions made with cryptos. While there is no official ban on cryptos, most governments are reluctant to allow cryptos to be “legal,” even though they are not breaking or circumventing any laws.
On the whole, the blockchain looks to become the wave of the future for business. As the world becomes more and more technologically inclined, cryptos, or digital currencies for that matter, will take over the vast majority of financial transactions. Perhaps there will still be a place for physical money. However, the outlook is that everyone on the planet will eventually have a digital wallet in which their wealth can be stored seemingly forever.