Bitcoin and Blockchain after a Decade

Lebedev

Lebedev

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Jun 26, 2018
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Every person has been wondering what will happen to cryptocurrencies in the next ten years: will we live in a brave new, blockchain based, world or will everyone simply forget about that such thing as Bitcoin took place.

Bitcoin and Blockchain after a Decade


A good way to do the right prediction is to find out how it used to be, when it has only appeared. So let’s take a look


Back in the Past

Bitcoin was released in the year 2008, but lots of people do a mistake when say that bitcoin was released on 3 January of 2009, in fact however, it is the day when the first block was mined, but the cryptocurrency itself had been existing some time with no usage at all.

Those days, the world was in a state of financial crisis. The world’s strongest countries got into to huge debts. And after the american biggest investment bank Lehman brothers went bankrupt, domino effect of the world’s bank system took place. Trying to save themselves, these countries start a giant money emission, what was against all the economic rules.

As a protest, Satoshi Nakamoto (who isn’t probably a single person, but a team) tried to do a payment instrument aimed to show that nowadays economic system is absolutely useless. However, after even ten years it’s pretty hard to say is Bitcoin a good alternative.

What was in the mind of Satoshi, when he was working on the first cryptocurrency? Fortunately, we can say some of his ideas for sure:

  • Government and banks must have no control after money as well as its emission
  • Create a simple tool that can’t be manipulated by influential people, but can be manipulated by common people
  • Currency work of which is transparent to every person, not only for those who have powerful financial instruments
To sum up everything, Bitcoin has a great idea at the very beginning, but soon it has become an instrument of saving and multiplying capitals, like gold. This is the main reason of crypto market going down so fast.

People don’t understand the true value of cryptocurrencies, and think of them as a good way of making money, because we are used to thinking about the money itself more than the financial freedom, so all of us are the only perpetrators of today’s situation.

If everything goes the same way, after some time we will see that bitcoin is now mined only by giant Asian corporations and controlled by monopolists, who are European financial institutes.

Despite everything what is going on with bitcoin, it has end-run joker, which is blockchain. People from completely different parts of society knows how big potential of this technology is.


So how crypto industry is going to be like

Blockchain is already used as a powerful instrument for developing important data bases in financial and bank systems, transportation and leasing, social networks and even state elections and governance.

Distributed database technology can change a lot in other industries as well - it’s already obvious today, on the other hand, no one had such thoughts a decade ago. So we can count that the technology will change world in the way we can’t even imagine at the moment.

But there’s another question, will bitcoin save the “heritage” of Satoshi or will it be the same as it is now. If the answer is yes, we have no reasons to think bad about its future. However, bitcoin has lots of problems, which other cryptocurrencies can solve, so we probably have to wait for many new players on the market.

Now, let’s think about two main ways of cryptocurrencies’ development in the nearest future.


Decentralized blockchain

Bitcoin and Blockchain after a Decade


As the industry develops, cryptocurrencies will become more and more used in lives of common people. Because of obvious benefits of such technology, most of the people will use blockchain based payments systems, despite they used to pay via fiat money.

As the time went, and coins are spreading more people will become followers of cryptocurrencies or even crypto-anarchism. Technologies will be developing very fast as well - developers will work on functionality and usability, while the blockchain itself will become more adapted for different usage.

But the most important is that such a powerful tool won’t be managed by any government or bank, but it will be managed by the world society consensus, what will be very unacceptably for countries. But that will be only able to do nothing and come to terms that they now have to use the newest world financial system without any control of it. Extends of the technology usage, people’s understanding and decentralization of everything will make governments unable to change something, but they now must accept cryptocurrencies as the new financial asset and payment method.


Centralized blockchain

Bitcoin and Blockchain after a Decade


Authorities of such big countries as China, USA, Japan or EU are already interested in use of blockchain in their economics as well as the work of the whole country. This trend is going to continue - competitiveness does it work properly. Governments of different countries realise the true potential of digital money and understand that it is a good idea to create new financial assets on the blockchain.

Unfortunately, we can’t even dream about these currencies to be decentralized - Central Banks will create coins, based on the blockchain, but still fully controlled by them.

All of us are happy to hear about countries working on their national cryptocurrencies, in fact however, it’s really bad for all of us. In this case, governments will have full control over transactions, see all interesting financial operations, what is more, become able to block anyone’s wallet in one click and confiscate someone’s money without going nowhere and asking for special authorities’ approval.

These systems are going to be based on the blockchain, but with the full government’s control, in other words, authorities will become the most important even in the digital space.


Summary

We can see that everything in crypto industry depends on which of two development ways will everyone choose. On the other hand, we can say for sure that technology, cryptocurrencies is based on, is the future of world finances, and the most important now is who will get the control - society or governments.
 

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