Cryptocurrencies have made a huge impact on all of us and the way we perceive money, transactions and general safety when it comes to our finances.
Crypto has been something hard to understand and apply till recent few years when it made its boom and took over our lives in different forms. Some started buying various cryptocurrencies to save and possibly prosper after some time, some buy it for the sole purpose of trading and swift money back and there is a group that tries to utilize its security and anonymity for different kinds of shady operations.
Whatever the reason for using crypto it has changed the perception we had towards banking, transfers, payment methods and many more. It brought some great innovations, improved security and the ability to be the boss of your finances as well as the ability to track your transactions as well as others that happen on the blockchain.
Blockchain next to crypto is probably the biggest revelation out there it gave us all insights into what is happening with transactions we make and everyone else makes. It made tracking both easier and difficult depending on who is looking and how big the knowledge regarding the blockchain that individual has. Thanks to http://oil-profits.com we made this article that will tell you about the future impact of crypto and blockchain on us all, so stick to the end.
Whenever someone speaks of crypto these days there is slim to no chance that they are taking a look back at what crypto mining is doing to our environment. Printing money, regular paper and coin cash also take time and energy. It consumes materials but mining crypto which is the only way to have new coins added into circulation. Whenever someone makes a transaction using the currency, mining computers are rewarded in crypto for verifying it. This entire process draws a lot more power than all of us even imagined. According to some research mining, crypto makes us consume more than 32 terawatts of power per year which is more than what some developed countries like Denmark or Ireland consume all year. To scale it to something that will be a little bit easier to understand – one crypto transaction uses around 5000 times as much more energy as a credit card transaction this amount of energy could sustain a normal household for around 9 days straight. The demand for power usage increases and it is growing every year meaning that in some time we could reach some potentially alarming problems if something a bit more efficient isn’t brought to the table.
Blockchain and financial accountability
Since it emerged blockchain brought some innovations to the financial world but it was swiftly utilized in some shady operations and deals. Now we are afraid that if some serious regulations or control isn’t brought up in the next period this could get out of hand. Blockchain is a digital ledger and with it, new financial accountability emerged. You all know, and we already mentioned it but thanks to its existence your financial status, transactions and everything else you do on the blockchain is public but safe because there is no way that you get hacked, robbed or cheated. If in near future traceable cryptocurrency becomes a norm the theory behind that is that we would all have insight into the financial activities of banks, governments, major companies or other individuals.
With some cryptocurrencies, you are invisible to online trackers, ads, hackers and you can shop and spend your cash the way you want and without anyone gathering a bunch of data or spying for your credit card. Having sites, shops and other apps that help you pay with crypto and use secure pages for your favourite shopping you will at least in some major part be out of the grid and the reach of bad people like hackers, and those willing to collect data for you to “have the best experience possible”. There are certain apps as well as certain crypto coins that allow you for nearly full anonymity whenever dealing with shopping, paying, browsing and similar.
Incorporation of governments
This is a huge thing that crypto is changing and it is doing this for the best. When crypto first started big banks and governments never gave it a second chance or even a second thought. They hoped even bet on it flopping very soon, but the wish for people to have a decentralized place that deals with their money were too big and the success of crypto made them look at it a bit closer. Some governments even started investing money in crypto or buying chunks of it that will serve as a fall safe in case anything happens. They also tried to get in on the technology themselves and the best testament for that is Canada that has a central bank that is backed by digital currency and is called CAD coin. According to them, this is just a first step toward “blockchain-ification of banks”. This, on the other hand, draws one bad thing and if this happens it means that the users of cryptocurrencies will no longer be able to use their crypto the way they see fit.
With the breakthrough of decentralization, we didn’t know its full capacity until recently. It is still a mere theory but with technological improvements, it will easily grow into reality. Decentralization of business is something we can expect in near future. Traditionally businesses have to look at governments and banks when in need of sorting their affairs but with the development of crypto this will no longer be needed. Thanks to something called smart contracts that stand for automatical and non-breakable agreements that can become reality. Imagine if you want to buy a space for your new office and you want to move in only after the owner fixes all the electricity and plumbing. This can be written into a smart contract that is backed by crypto and you wouldn’t need any realtors with their expenses. This thing can be built and scaled up to handle running larger companies or even governments but so far it is pretty unlikely for that to happen.