Cryptocurrency has been an increasingly prevalent economic driving force in the United States these past few years, seemingly defying the ‘fad’ label that experts have placed onto it. Bitcoin, particularly, has seen massive soars in value, peaking at 1.2 trillion back in April.
However, with cryptocurrencies like Dogecoin also rising in prosperity, questions have been raised over if this is a legitimate currency, or just a super influential meme?
Crypto is decentralized, meaning it is controlled by a network of people rather than just a centralized factor, like banks. Banks typically lead to the inflation of currency which slowly devalues it. This is a significant pro to crypto, as it gives less power to the banks.
However, the currency is highly volatile, as it changes value constantly. The price of Bitcoin dropped thirty thousand dollars in the span of three months, from $60,000 to $30,000, and now is back on the rise up to fifty thousand. It may be safe from inflation, but it is far too malleable to be used as a primary form of payment.
There is an interesting analogy comparing Bitcoin to a check. Sure, you can cash a check and it is a completely valid form of transaction, but a check is only valid because it represents real money. Is the same true for crypto? Does it just represent money?
Crypto, in its current state, is quite insecure. Beyond its high fluctuation pattern, it is also prone to cyber attacks unlike any other currency. Fortunately, great strides have been made to protect crypto.
Cryptocurrency is still in its adolescence, however, it is evolving. As time progresses the stability, validity, and purpose will be further secured. At the moment, it represents a brigade against the current systems of wealth designed to sustain the rich. If it continues to progress, it will take power out of the hands of the elite, and into the hands of the people.
https://time.com/nextadvisor/investing/cryptocurrency/future-of-cryptocurrency/
