Why Is Cryptocurrency Necessary?
There has been a lot of talk about cryptocurrencies and a lot of confusion as to what they are. This is because of a lot of confusion about money in general and more specifically what money is and how it works .Money is a tool that is pure and simple. It acts as a medium of exchange but in many ways it is also like a form of energy. Operating the socio economic platforms on which our world is built.
Money as they say revolves around the world as our world has evolved as a result of technological and social innovation that encompasses industrial agriculture and now digital revolutions. Also our money has changed to better enable platforms to transfer value that can motivate work and reward innovation.
As the digital revolution gains momentum changing almost every aspect of our daily lives a new platform is beginning to emerge which is decentralized interdependent and transparent highly fluid platform covering energy production, manufacturing and communication.
Connecting everyone and everything to what has been described as the Internet of Things or by some as the third industrial revolution. Like the development of this platform however it is clear that our money must also change in order to most effectively plug in to these new networks and take advantage of the tremendous opportunities they offer.
Our current form of currency known as FIAT currency has some serious design flaws that make it incompatible with new advancing technologies issued by central governing bodies within individual countries and transferred to within the economy of an extensive heritage network of banks and financial institutions.
This system becomes extremely complex when we move online and cross national borders. This is because every transaction must be authenticated and processed by localized networks.