Do we really need bitcoin and cryptocurrencies?
The digital currency has only one goal, and it is decentralizing through financial incentives (awards and fines). A blockchain without a financial reward is actually a database and very costly. In this view, there are two very misconceptions about the use of a company from the blockchain. The first mistake is that some clever people believe that the blockchain is only effective in some specific cases, such as financial ones. The second idea is that Blockchain and Bitcoin are different, and this technology can be used without a digital currency. Both perspectives pose a major issue, which is the main reason behind the emergence of this technology. Now let’s see do we really need bitcoin and digital currencies?
Governance and Infrastructure of bitcoin and digital currencies
Let’s start from the beginning. The digital currency was made to peer to decentralize the trading in a completely private manner, without the need for a license and peer. If the ultimate goal is the balance of power structures, the technology of Blockchain can be used in two separate categories.
The first category is the infrastructure. If a digital currency is to be decentralized, there should not be any failure points. And in order to be uncertain, no device, organization, node or individual can own more than 51% of the network or hash. (As the bitcoin’s blockchain has the tallest chain, the benchmark is the hash rate.)We can all confirm that decentralized infrastructure requires a decentralized infrastructure, and the best example is a peer-to-peer digital currency.
The second category that needs to be addressed is, as I have said so many times, sovereignty, which means the ability of users to decide on a network. Do users need permission? Can anyone share the decision? Who cares more than anyone else?
If all decisions are made by a small group of people, it does not matter how decentralized your infrastructure is.
To make our business completely decentralized, we need to take advantage of both decentralized infrastructure and decentralized governance. A network in which each user of the network actually owns it, in this context bitcoin is an excellent example. Although proof of work is not the most effective way to distribute the network, however, Bitcoin is the most decent work protocol ever made.
Read more: Bitcoin block size a mystery
Some ideas like Circular Oriented Graph (DAG), Iota, or EOS, Cardano, etc., have the potential to improve the distribution of money, but since they have not evolved and are still under construction, we focus on Bitcoin.
There is an interesting way to see how decentralized the network is with decentralization, called the “Blockchain Gini Index”, which means an indicator for examining the distribution of money (power) and determining how much each person owns. Is it possible that bitcoin or the entire digital market will make 1% of the population equal to 99%? The question is not unexpected.
Although infrastructure and management are both decentralized, but since a few specific customers and individuals have a lot of bitcoins, it’s easy to say that we still have a long way to go.
But it seems to be reasonable that the primary sponsors and those who have been batting and protecting Bitcoin over the past few years have made it possible to take advantage of this technology because of the risk that they are deserving of more rewards. However, these people have to find a way to spend their bitcoins, otherwise it’s just useless to have bitcoin. Fortunately, in the meanwhile, we will see changes in bitcoin managers and a change in the humility of power.
Usually there are other factors that should be taken into account, such as bitcoin rich accounts that have been left unused for many years, or large funds that are lost by forgetting information.
Decentralize everything. For me this is a double-edged sword. Although I do not have the intention of pulling the feet of different schools of thought, I can understand the meaning of decentralization from a philosophical point of view.
It is certain that this can bring power back to the people, but at what cost?
Is it easy to understand this? What can it mean? Is it really good for us? Do people really want to overcome the difficulty of eventually changing the existing centralized system to a person-to-person system?
People usually decide in two ways:
- Based on values
- Based on their interests
Of course, this is my personal opinion, and some people may have other values. The important thing is that no matter where you are, you will ultimately think about how changes can be profitable for you. Technologically, it’s clear why we need peer-to-peer systems.
Just watch one of the videos by Andrés Antonoulos to understand why we are heavily decentralizing. However, it should be seen that sociologically the benefits of this work are worth the trouble?
For example, if you live in a developed country, why do you need digital currency? Getting an understanding of what you should always have with your financial records and financial records, and worst of all, if you lose something, it will not be hard for you to go back. Your money will be lost forever. Can such a system be efficient?
It is true that we will no longer be affiliated with banks, and so on. But is not the price that we pay for it to be heavy? From official and backed money to digital currencies, it means that we have to use our thinking and be responsible for our own assets. There is no button to restart, at least in time, however, are the community and the majority of our people prepared to accept such a responsibility?
The adoption of digital currencies depends on the use of people
If bitcoin and other digital currencies are used as hoarded funds, they will remain the same. The internet was supposed to be where people could trade freely and make their say, share their roles and share their ideas, even if nobody likes them.
However, there are still horrible things on the Internet, such as child pornography, human trafficking, and other horrendous issues. As we can not stop these issues, we can not stop the use of criminal individuals from bitcoin.
The only thing we could do was to use a Google-friendly connectivity interface to stop these unfortunate events from happening (in the past, there were other links with the names of Alta Vista and Netscape. they had). There are definitely other options as well.
There are always people who only want to do things wrong, but they should also pay attention to other coins.
People who do not have access to financial institutions and can not participate in local or global economic affairs, those who live in a strictly dictatorial government and do not have the right to vote, those who live in countries whose money is badly flooded by bad banking or corruption. Gets
We could have the same approach we had with the digital currency, and we began to build private blockchains. It is better to lay down rules to protect the interests of investors. Preventing people from entering the market without sufficient knowledge or sufficient capital to participate. More options are included on the contract list.
Maybe you think I’m exaggerating. However, it is not difficult to build private Blockchains to regulate markets or ask for some form of participation. The main reason for the invention of digital currency has been from the outset that allows all of them to do whatever they want to do. If you respect the rules of the protocol and obey it, you can also participate. Having problems with the rules? It does not matter if you come out of the network and enter another network. What’s the matter Do you remember Our main goal from the outset is having the right to choose.
Yes, of course, it’s very worrying that we should be responsible for all our digital money and assets. But what if we lose them? If something bad happens? If he has not done anything, does anyone arrange my account? Let me take it easy, eventually a bad thing will happen. Fortunately, not all bad things, but eventually one or more of them. I’ve already been carved and sketched and overall experience from those adventures.
For example, one of my mistakes was that I did not back up my files and data for a long time.
But the point is that every action is going to be a response, especially in the digital world. It’s not easy to regain control of what belonged to us, especially the privacy of data and information.
Why choose the hard way and take control of every part of our life when we can easily use different companies to do it?
Digital currencies allow us to have a world in which we draw conclusions based on the behavior, time and attention, and the other is not just about having a job. If you have digital capital that can easily be used to participate in a network, why not use it?
What is more important than having money?
If we can accept the fact that there is any reciprocal advantage, then we can examine what is in our favor. Is it advantageous for us to have a third person owning and managing our assets, and we feel secure about this?
Or a system that allows us to be responsible for our own maintenance and safety, and we just get a reward for it?
But how to achieve it?
Personally, I do not think that in order to raise the information and accept the people, we need to set up huge multi-billion dollar projects. What will matter to us is the right ideas that show us how Blockchain can be used both for management and for infrastructure, as well as for the distribution of profits among all members of the community. Currently, digital currencies such as Bitclave, Neo, Binance, Coss, Kucoin and many others do this.
But still not enough.
What we need are projects that have long-term benefits, such as infrastructure projects and those who focus on more efficiency. We need a superb design and simple user interface to enhance the level of application of platforms, to people who understand the economic incentives and principles of working for every business, as well as to the people who work with the use of digital currencies in the daily lives of beliefs. And have sufficient mastery.
We need to develop a miracle of digital currencies, not only because it takes the A or B project to a higher level, but also because of the work that the business and such projects that strengthen the infrastructure are doing to the world.
Read more: What is the best bitcoin wallet?
Empty your mind and think again
The interesting thing is that Bitcoin and all the digital currencies that will arise in the future will meet a common desire. The main reason why we need bitcoin is that the more people are added to the global economy, the more economics they will grow.
Companies grow because people have money to spend, people are developing new ways of exchanging and financing their money, and governments are progressing when people are happier and have more opportunities to make money.
The reason why we need digital currency is quite clear.