“It was the best of times, it was the worst of times.” Who would have thought that Charles Dickens’s quote from A Tale of Two Cities would ring true today in relation to the world’s most hated sector– cryptocurrency.
In 2017, cryptocurrency started to gain recognition among institutional investors (banking institutions), media outlets, and seemingly anyone trying to make a quick buck. In fact, the industry’s most widely known and traded coin, Bitcoin, increased in value by almost 1,200%. But what makes this roughly $250 Billion industry attractive to some, but scoffed at by many?
Cryptocurrency in a Nutshell
Many of those who have not already studied this market phenomenon or are not savvy in the field of finance have no idea what cryptocurrency entails. In short, cryptocurrency is a form of digital money or currency that is heavily encrypted and secured by a type of newly developed technology, called Block Chain. Whether it is Bitcoin, Ethereum, Ripple, or any other type of cryptocurrency, these digital coins are completely unregulated and free of government and/or central banking oversight. Instead, the cryptocurrency market relies solely on market forces, like supply and demand.
How Cryptocurrency Could Lead the Next Revolution
Cryptocurrencies’ rise to fame – or infamy– certainly is not without criticism and ridicule from those in powerful positions. Elites like, Jamie Dimon, CEO of JP Morgan Chase, called Bitcoin a ‘fraud’ and threatened to fire any employee who was caught investing in it. Countries have even gone so far as to harshly regulate the market or impose an outright ban (Iran). Many American bankers and high-level investors scoff at the idea of Bitcoin. Why is this? Why are so many of those in power not only betting against cryptocurrency, but doing what they can to disavow the very notion of the entire market? One would venture to say that it is due to a possible shift in the power structure. Cryptocurrency can profoundly disrupt and shift power to those who have never been heard of by many.
Cryptocurrency is one asset that governments cannot control or track due to its technology constantly encrypting transactions and accounts to keep crypto owners anonymous, safe, and secure. Big banks cannot profit from selling any crypto assets to the common consumer (yet). With many countries becoming increasingly intrusive, in terms of governmental scope, citizens are looking at assets, like Bitcoin.
In 2014, in the early stages of the country’s shift to its disastrous Socialist policies, the Venezuelan Government made several overnight changes to their currency (including the outlawing of conversion to American dollars) and from it, hyperinflation was sparked. Quickly following these changes, Venezuelans looked to put their money in a currency that was appreciating in value as opposed to one that was rapidly depreciating. Bitcoin saw a tremendous spike in its worth.
As of today, cryptocurrency may not be the greatest industry to invest in due to its volatility and lack of sensible regulatory standards, but one could arguably say that it is a nascent market that has tremendous potential. We are beginning to witness profound distrust in governments around the world (Italy, anti-EU movements, Iran, many Asian countries, etc.) With only a minute percentage of the world’s population being a part of the industry, this means that there is a vast market still untapped. In a time where government-backed, fiat currencies are failing across the globe and experiencing a loss in purchasing power, the people may finally have power and freedom found in cryptocurrency.
The views expressed in this article are the opinion of the author and do not necessarily reflect those of Lone Conservative staff.