Russia has officially given the green light to cryptocurrency, and they’ve done it in quite the emphatic way: by beginning to develop their very own cryptocoins, the cryptorouble. And it is not just mammoth-Russia who recognizes the power of Blockchain. Governments around the world — including the U.S., China, Japan, Canada, Venezuela, Estonia, Sweden, and Uruguay — are also endeavoring to create their own form of cryptocurrency or actively researching the benefits of doing so.
The looming dominance of Bitcoin has evoked both types of reaction: appraisal and rejection. On one hand, you have a number of countries scrambling to join the ranks of the Blockchain, and, on the other hand, you have governmental bans on cryptocurrency – i.e. South Korea, China. Interestingly enough, China is a paradox that not only covets ownership inside the blockchain but also bans it. After imposing a ban on Initial Coin Offering, China is now targeting all platforms that offer crypto-exchange services. The reason for this crackdown remains unclear, but it can be conjectured that China is trying to steer clear of financial risks in the future, especially considering its past decade of surges and falls. However, all this enforcement is happening concomitantly with research into a ”crypto-Yuan”.
Bobby Lee, the co-founder of what used to be China’s most enduring bitcoin trading operation, explains that there is a considerable difference between the way Westerners and Chinese view bitcoin. Westerners tend to look at bitcoin as an equalizer, a tool for the people and not the institutions. From a western perspective, money has never seemed so democratic before. “China”, on the other hand, ”doesn’t care about the libertarian view, they don’t care about the political aspects of it. What they care about is income – can bitcoin make me money now?”, Lee declared for the South China Morning Post.The answer to this question is more convoluted than it may seem at first. Certain experts, like Bettina Warburg from Transformative Technologies, believe that the quicker people let go of the mentality that cryptocurrency is here to make them rich, the better. No one can guarantee that bitcoin can load you up with money, and, in part, that’s the appeal of it: its volatility. However, there is a clear-cut reason a government digital currency, like the ones Russia and China are trying to develop, could be good for you. It might not make you money, but indubitably it will save you money.
In what way, you may ask? Well, it must be noted that there are two major risks that linger in our minds when it comes to bitcoin exchange. One of them is hacking. No one wants to feel financially unsafe and, in truth, the concept of digital money means putting a great deal of trust into a single, alternative technology: Blockchain. However, when analyzing the big picture, it appears that the same risk of having someone tamper with a transaction of any kind happens to all other financial platforms: online banking, PayPal, E-bay. What these platforms donțt have on their side, however, is cryptography and all the security it entails.
The other risk that rests on the back of our minds whenever the topic of crypto-wallets comes up is the government. Governmental crackdowns on cryptocurrency trading have proven their impact on the market, with cryptocoins steeply falling to record-lows after each South Korean or Chinese intervention. Traditionally, institutions are a tool to lower anxieties over financial transactions – currencies are authorized by the government, transactions are enabled by banks, which, in turn, take around 3-5% of the transacted sum. Normally, these uncertainties and anxieties slowed us down by making us need a 3rd party, an enabler. Now, with the advent of Blockchain, they have pushed us to source a decentralized alternative, which could explain the sudden boom of cryptocurrency exchange websites and cryptocurrency WordPress themes. Their popularity speaks for themselves. Unlike traditional transactions which need an intermediary (who, in turn, needs to receive payment for their services), the block chain technology doesn’t rely on a central power that governs the circulation of power. Everything is anonymized and democratic. Bitcoin Miners which ensure the well-functioning of cryptographic transactions does not receive compensation from the transactions they are working on. A governmental cryptocurrency means a revolution of the banking industry.
Irrespective of where you stand on the cryptocurrency debate, the truth is that digital coins are here to help you. Behind all the noise surrounding money laundering, speculation, and hacking, there is a well-cemented path that the blockchain is on, and that cryptographically-secured path has been proven to save you money.