Why Cryptocurrency is Important to Me
Hello Steemians! Saw @coingecko's writing contest today and decided to give it a shot. Such contests always have the effect of reinforcing my belief that Steem platform is the perfect avenue for content crowdsourcing. Anyway, before I start, I will just like to introduce what CoinGecko is about.
Most of you should be familiar with CoinMarketCap, which is a very popular cryptocurrencies data aggregator. Similar to CoinMarketCap, CoinGecko is also among the most popular cryptocurrencies data aggregators in the world. And on it, you will be able to check the price of your favorite cryptocurrency, for example STEEM,
However, unlike other data aggregators, they provide some information that are not available elsewhere. For example, they offer the "Developer" and "Community" ranking of cryptocurrencies, and these are metrics that I am unable to find on other sites.
I digressed enough and now allow me to share why cryptocurrency is important to me...
Cryptocurrencies Bring Power Back to the People
Before I start, I need to emphasize that whenever I mention cryptocurrencies, I am referring to fully decentralized, P2P systems with all transactions recorded on an immutable blockchain. Why? Because I am aware of centralized systems that are also coined as cryptocurrencies and I don't regard them as true cryptocurrencies.
For most governments, fiat currencies coupled with traditional banking systems are the most powerful tool they have over their people. By controlling money, governments control our life. Whenever a potential threat is identified, the first thing governments will do, is to freeze the bank account of that threat entity. Regardless if the threat is from an individual or an organization, with the bank account frozen, it is essentially game over and the entity is effectively crippled. Imagine how much power an oppressive government has just by controlling the monetary system.
In my opinion, power corrupts and governments having too much power will, more likely than not, become oppressive and not always act with the interest of the people. On the other hand, it is not possible or very difficult to freeze cryptocurrencies transactions. Hence, in a world where the dominant currencies are cryptocurrencies, governments will lose an important grip over its people. I believe with the power distance greatly reduced, it will lead to better governments all over the world.
Cryptocurrencies can Potentially Fix our Broken Financial System
We have thousands of cryptocurrencies as of now and each of them represent an economy on its own. Why? If you think about it, each cryptocurrency, be it a coin or an utility token is a self-sustained ecosystem. Taking STEEM as an example, it is the currency for the Steem platform. On the Steem platform, we can buy and sell services just with STEEM alone. Similarly, Bitcoin is also an economy of miners (service providers) and consumers (people making transactions).
Source
I believe one of the reasons why we cannot escape market cycles of boom and bust is due to the fact that fiat currencies are used for all industries and business types. As a result, when one industry becomes overheated and the bubble burst, it typically results in a domino effect which will affect other industries. Depending on the scale of the bubble, it might then result in the entire country sinking into a recession. At the global scale, the US dollar is used in most international trades. Therefore, if one country gets into financial trouble it might lead to further widespread impact.
Imagine a world with thousands of functional cryptocurrencies. For example, we have STEEM which is a currency for social interaction and content creation. We have SUB (Substratum), which is a currency to access the decentralized internet. There will then be currencies system which is based on services/industries instead of countries. It will be a system without physical boundaries and every currency is backed by the demand of that service/industry itself.
At that point, where there are so many micro-economies, I believe we will have a more robust financial system. A failure of one currency/economy is less likely to result in a domino effect with widespread impact. This is akin to the micro-segmentation concept in the security world. Therefore, potentially, the invention of cryptocurrencies may just be the first step towards the proliferation micro-economies and it might be the fix for our current financial system.
This may seem a little too far-fetched at this stage, but I do believe we are embarking on a long journey to reach that end state.
And there you go, here are the reason why I think cryptocurrencies are important to me. In fact I think they are important to everyone. Thanks for reading!
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This post is a submission to CoinGecko's ”Why Cryptocurrency Is Important To Me” Writing Contest
yes, we should trust crypto , because it's will be the next revolution :)
completly agree with you @cityofstars
Hi brother,
Once again a very well written post. I like how you at first introduced the website and then focus on the contest.
I'd love to participate and write a similar text but I'm simply too busy.
I agree with you. Many coins claim they're amazing cryptos but in the end they aren't [(even) decentralized].
The rest of the article is really good too - issues regarding governments (and their power) and lastly the financial system with its bubbles and connections.
Anyway, I don't really think that simply "a lot of different coins" would change this whole economy. Market cycles and bubbles probably always will be there (this whole overlapping as well, I guess). It definitely is better to have various coins/currencies instead of only one of course.
Thanks for dropping by again bro. Yes, it is a far fetched dream of mine. Market cycles likely is here to stay due to human nature :)
I just hope we can be a bit more resilient
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At least I've time for that bro. Okay haha - exactly, humans normally don't change that quick. ;D
I guess many traders are haha - especially in the volatile crypto space.
I hope that one day a coin will has more value because men with computers say they do than a coin because men with guns say they do
hi @culgin
How have you been doing? Since I didn't hear from you, I decided to check your account to see if you're still being active on Steemit.
Im glad to see tht you're still around. Obviously upvoted :)
ps. I wanted to ask you a question. You mind telling me what's your view on latest HF20 introduced on steemit? Did it affect you in any way?
Obviously upvoted.
Hey there! Yup, I am still here :)
I have written a little here and there regarding HF20. I believe it is good in the long term but the immediate effects felt by Steemians are mixed.
The HF brought about 2 changes that I think is essential to make Steem sustainable in the long run. First being resource credits, it is good because it bring about a "cost" element in whatever you do on the blockchain. This helps to curb spams and at the same time make STEEM staking a bit more important.
Second, is the ability to create accounts without spending STEEM. This is good as it allows dApps to implement their own sign up process which, in my opinion, will lead to a better user experience for those dApps.
What I don't like is the harsh limitations set on accounts with zero SP. These accounts are unable to make meaningful interactions on the platform since they do not have enough RCs. I think all accounts should be allowed to at least post once everyday and make at least 10 comments regardless of their SP amount.
I'm currently thinking of an initiative to delegate SP to those accounts with less than 15SP. Hopefully this will encourage more users to join and more dApps to create accounts using RCs
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Thank you for your amazing reply @culgin
hi @culgin
We're having very similar view on HF20. As much as it didn't affect me - it is a killer for anyone who cannot power up.
I just user my friend account (with almost no SP) to drop few comments and my RC went down by 20% just after 3 comments.
That is insane.
Great comment buddy.
Yours
Piotr
easy to read @culgin
good luck with your contest
hi @culgin
I've noticed that many people share your belief that "Cryptocurrencies can Potentially Fix our Broken Financial System"
Somehow I came to a conclusion that it will most likely never happened.
I really don't know why so many people believe that crypto is a solution. As much as I see huge benefits from this technology, I still don't believe that it will fix world financial problems.
Imagine a situation, where almost every country around the world is printing money non stop. Without any break. Making supply pretty much unlimited. Wouldn't it be awful?
That's how crypto works. It's never ending supply is a real issue. Not to mention that each month new cryptos/ICO are flooding into market. Increasing even more total supply of crypto.
So again: if every country around the world would be constantly printing money and every country could at any moment create new currency and print it also non stop .... what would happend with our global economy?
That's how I see crypto.
Yours, @crypto.piotr
Hi @culgin!
Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
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Are you still active on discord?
Yes I am
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what about email/telegram? :)
I'm active on email/telegram too. Connect with me on Discord and I can share those with you :)
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