Bitcoin and altcoins are here to stay. Despite various efforts of banks and institutions threaten to lose their monopoly trying to ban coin payments and transactions, cryptocurrencies are becoming a part of the financial ecosystem. Their user base is growing rapidly and the application of coins already went beyond tech startups and internet geeks. Here’s how early adopters and growing public use and altcoins and other cryptocurrencies and where the whole innovation may be heading in changing peoples’ lives.
- Make money transfer faster and cheaper
The ideas of the current system of money are centered around banks: central banks issue currency and regulate interest rates, while private and public banks provide transaction services with embedded security to ensure that all customers money are safe. They have over time gain peoples trust, and with debit cards, people don’t need to carry cash on them. Also, banks can refunds their customers when their cards are stolen or fraudulent charges are made on their account. However, one vital thing that banks could also do better is the ability to transfer money faster. Especially international transfers take a long time, usually a few days or more, and tend to be very expensive.
Banks could use the blockchain protocol to make money transfer instant but so far they choose not to. In fact international money transfer usually take about 5 business days because the banking system was designed pre-internet. Money has to be routed through a bunch of different checkpoints, so called banks-correspondents, before it reaches the recipient. There are ways to speed up the transfer, but it is costly and still cannot match the efficiency and speed of blockchain, which could help moving the money to the recipient almost instantly.
Banks perhaps want to avoid Bitcoin and other cryptocurrencies because it could lead to exposing their transactions to the public, and would involve trading a highly volatile instrument which banks do not understand how to control. Perhaps banks opt to create their own internal cryptocurrency pegged to their state currency before they introduce blockchain processes to international money routes. As this process in lengthy, internet communities and a growing number of end users choose to use Bitcoin and altcoin to send their money.
It is worthy to note that not everyone has the privilege of having trustworthy banks in their country, particularly the developing countries. One-third of the world’s adult population doesn’t have a bank account at all. In developing countries, financial infrastructures can be totally absent, and people need banks account to participate in global economy, i.e., to get paid, have access to loans, etc. and altcoins and altcoins provide exactly this solution, without the need of implementing a financial system with their regulatory institutions. All you need is just to open a Bitcoin wallet online, on your laptop or smartphone, and you are ready to go, having almost an equivalent of a bank account.
- Bitcoin makes it easier to earn micromoney
An increasing number of people get involved into jobs and tasks providing small services to other individuals online, via freelancing platforms and social media. The online payment of small amounts involving traditional currency using banks is a real trouble, as transfer fee may be often higher than the sum transferred. Bitcoin and altcoin on the other hand allow people to get paid with really small amounts or micropayments since the transaction fee is almost non-existent. This means also instead of being paid every 2 weeks for a job, you could be able to get paid by the hour, minutes or even second. People can pay each other fraction of pennies for data, images, video or even articles.
- Help fund and grow your startup
Assuming you intend to commence a startup business, you create a product and incorporate your company. Now, all you need is to raise some funds to get started. Crowdfunding could be a cool idea, but people might not be as likely to invest in you if all they get is a free t-shirt. What if you could reward them with equity or shares in your company?
With altcoin technology, you can create your company currency with a few clicks. You can think of coin as shares in your company and having each share linked to one coin. With this, you can give shares out to people who backed you early on to early adopters, facilitators and promotional partners. The value of your coin will grow as the value of your company grows just like in a traditional corporation. Therefore, it is not just crowdfunding but crowd-equity which will allow you to create money much faster without the hassle of regulation and constraints applied to classic shares. Since people will be more interested in the success of your company, you will get much more exposure.
- Future of global basic income
Advances in robotics and technology are an accelerating rate which means robots are going to replace a lot of humans for labor-based jobs over time. There will grow the need for a social safety net for people on every level of society and in every level of knowledge and skills, even without one. Perhaps new basic jobs may be created which robots won’t be able to do, but earnings will also be rather minimal and tied to the actual effort and time allocated. Instead of going every day to the office or shop, people will choose when and where to work, and how. While micropayments will allow people to get paid for their data, it might not be enough to fulfill their basic needs entirely. So investing meaning allocating capital among assets, cryptocurrencies in particular may be a vital part of activity of people who will be rewarded for their decision making and taking risks. On the other hand, people who would be unwilling or unable still deserve their part in the common good to survive, thus it creates space for so called social-coin, where everyone who owns a coin would receive their small pension every week.
- Connecting all money in ethical way
Bitcoin and altcoins and cryptocurrencies are the social answer to growing inequality and non-accountability of decision makers who execute their power e.g. by controlling money flows, interest rates and rules to access capital. Two of the biggest problems in the world, meaning war and poverty, are and always were directly linked to the uneven distribution of wealth globally. Adoption of cryptocurrencies already started to optimize how money is transferred across the planet, and if it went even further, may make the world more safe, equal and free of suffering related to the repeated misconducts of the wealthy.