Imagine being told one day that your paychecks would be in Bitcoin. Pretty cool, right? Except your liquid assets could tumble in value at any moment in this cryptocurrency future. And you’d have to convert your cryptocurrency to dollars to buy groceries at Walmart (WMT), coffee at Starbucks (SBUX) or books on Amazon (AMZN).
The surge in value of Bitcoin and its digital currency rivals has not been matched by their everyday utility. Payment processor Stripe cut off Bitcoin support in January, citing slow transaction times and high fees.
“We’ve seen the desire from our customers to accept Bitcoin decrease,” explained Stripe product manager Tom Karlo.
Bitcoin and other digital rivals are nowhere near ready for prime time. They might never match the utility of today’s financial-system incumbents, the banks and payment companies that facilitate the flow of funds over tens of millions of merchant locations.
Yet much like millennials will never have a landline, a coming generation might do without bank accounts thanks to secure, peer-to-peer cryptocurrency transactions. Blockchain technology and the vast new crypto wealth have opened the door to four cryptocurrency futures that could usher in a new financial order.
Four Cryptocurrency Future Scenarios
What are these possibilities?
The Federal Reserve could issue its own digital currency, as some global central banks are exploring.
Large companies such as Amazon, Walmart and Starbucks might issue digital coins that inspire trust and gain wide acceptance.
Retail giants, by accepting payments in the currency, could elevate Bitcoin, Ethereum or another cryptocurrency above the others vying to offer safety, soundness and utility.
Finally, if trust is lost in government-backed, or fiat, currencies, a cryptocurrency future could come about by default. That may be a risk not only in places like Venezuela, but in the U.S., where federal deficits are spiraling.
“Virtual currencies might just give existing currencies and monetary policy a run for their money,” International Monetary Fund director Christine Lagarde predicted last fall. She also said, “As virtual currencies offer the same benefits and positives of cash like no risk of settlements, no delays in clearing, no registration centrally and no intermediary to check accounts and identities will prompt citizens to start using cryptocurrencies or virtual currencies.
A team of enthusiastic youngsters who wanted the world to know the pros and cons of the misunderstood cryptocurrency and blockchain, came together and started the website Coinpublish. When we decided to start coinpublish we knew we were in a race which had strong competitors and we had to be better and different. So we decided to roll the dice with crazy ideas which turned into amazing steps for the world to understand us better.