Despite extreme efforts by the Holier Than Thou political machinery, the popularity of Cryptocurrencies refuses to recede, and there are a number of reasons behind the same – the currency’s increasing popularity as well as the political conspiracy (in many countries) to make it look like a toy currency – not much better than the currency used in a monopoly game.
Economist calls it a fake currency, banks warn their customers against using them, and politicians express “grave concerns” over the negative socio-economical effects of Cryptocurrency. Right from its inception, it was believed that sooner rather than later, the Bitcoin Bubble will burst. It didn’t. A few years later a few more bubbles surfaced, and today, there are more than 1000 different cryptocurrencies across the globe.
It brings us to our next question what keeps them going? Is there really any driving force – a definite base under their running feet – or it is all about hype fuelled by controversies and bans?
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Fizzy Bubbles and real Soda
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The answer is yes and No – the former is weightier than the latter. Prohibitions and negations unintentionally nourish the very things/factors that they tend to oppose, and a good portion of Cryptocurrency’s popularity owes it to the same. Having said that, there certainly are fundamentally strong reasons behind the popularity of cryptocurrencies. Prime among them is the decentralization that discourages any government or financial machinery controlling your currency.
With a few efforts, the common masses can now have full control over their money, which means a lot! Money is the basic tool that determines the entire course of life – social status, freedom, power, and opportunities. Thanks to the technology of cryptography, more external power can control it.
No currency has a “real” value
The advocates of traditional currency argue that virtual currency doesn’t have real value. But a bit of deep thinking will reveal that even the real cash on their hand doesn’t have a “real” value. A simple and not very distant case is India’s recent demonetization of currency notes of 500 and 1000.
Bags full of Rs.500 and Rs.1000 became just a burden overnight! What could have brought kilos of gold suddenly became valueless printed papers! And how many of you were ready for that? Of course, the government allowed the righteous people to go to the banks and deposit obsolete notes after producing ID proof, etc.
But it brought long lines to the banks, and many people had to grease the palm of bankers in order to deposit the money they had earned righteously-just to avoid long queues and chaos. Here are some major takeaways from the same:
Hard currency has only relative value
Real Cash Real Value! If you, too, have this notion, you may be in for a surprise! The real hard cash (wads of Rs.500 and 1000) sitting on your hands and resting in your pockets instantly became valueless papers within a few minutes of the revolutionary speech! Why? Because the “temporary value” given to your currency notes was taken away by the authorities, to be precise – central authorities! Cryptocurrency is “De-centralized”- that means there is no central authority to control or legally authorize the value of your currency!
Government favors Digitization
The Government silently confessed that people with questionable sources of income hoarded the real currency notes and took prompt action against them. Kudos to the Government! It then favored digital currency. Why? Because it is easier to trace the sources of digital currency, and the records are not bound by physical limitations as in the case of physical currency. Cryptocoin goes a step further; even the digital record is not “controlled” by a central authority that can be influenced.
But in the first place, why did it happen…or more importantly, how could it be avoided? Cryptocurrency cannot be “hidden” inside the trunk, behind the wall, under sheets, or in your neighbor’s house! Each and every crypto coin you own is visible to everyone on the network. While your real identity is not disclosed, the balance and sources are for everyone to see. So there is no way you can illegally earn cryptocurrency without being “caught.” Besides, each transaction needs the intervention/consensus of other users to be accepted.
The government has silently started accepting cryptocurrency. BSE has already started a blockchain lab to train people in blockchain in financial trading. Use of blockchain in trading – does’ it strongly indicate that the cryptocurrencies will be accepted sooner or later?
The first hash is already created
Last but not certainly least, the first has already been created. The largest private bank, ICICI carried out a transaction with an overseas bank using blockchain and thus creating the first hash.