Cryptocurrency’s paradox

I’ve been using Bitcoin for quite a while now and cryptocurrency is one of the things that I do believe aligns with my core values.

Although this community is really awesome and just love helping each other, over time I encountered one thing that is kind of weird.

If you understand the value and disruptive nature of Bitcoin and you’re somehow involved in this area, you probably realize that this technology transformed the way we use our money.

It is different now, it became nerdier but at the same time faster, more reliable and accessible to every single person on this planet who has an access to the Internet.

However there’s a paradox that I stumbled upon and it caused mixed emotions for me personally, and for some people as well.

So basically what I found is that there’re more and more merchants who are starting to accept Bitcoin and other cryptos on a day to day basis. At the same time people who have Bitcoins (or any other cryptos) don’t really want to spend them, despite of the fact that they want to make it a global currency.

Pretty odd, right? I know.

So I believe there’re a few guesses to that which may or may not be right.

Guess #1 – deflation is a very uncommon thing.

It all starts from the fact that cryptocurrency is fundamentally different as opposed to regular paper currency. And the biggest distinction is that the former is acting like a commodity.

Even though people are still trying to figure out what exactly digital currency is and different countries propose their own definitions, nobody cannot deny the fact that the price is not stable.

The good thing is that if you look at overall chart of Bitcoin price movement and all of the other fiat currencies, what you will find is that Bitcoin was and still is the best performing currency over the last few years.

The fun part is that all of the cryptocurrencies are deflationary, meaning over time they actually worth more. And that is a very uncommon for fiat system where over the years its value went down and currently is dying.

So just an idea that your money can actually worth more in a few years is novel, and if most of the people will treat cryptocurency like an investment or commodity only, they will not start using it. They will only collect, anticipating the growth of the money they have.

In this way I believe the tokens like SteemDollar or any other that stay relatively stable may help. It is pretty cool actually. You store your money in ctypto but at the same time you don’t have to rely on the volatility that is usually implied.

Guess #2 – new technologies takes time to regulate

Even though Bitcoin passed its 8th year, it is still new for the governments. They still have no idea how to regulate it because of its nature. It was created specifically against the typical financial structure, and that’s why it is so hard to define how to play with it at such scale.

That’s why merchants and businesses are kind of skeptical to start accepting even Bitcoin. You never know what the consequences on the country you live in are.

I’m also very curious about the decision regardless ETF that is going to be either approved or declined pretty soon this month. I’m thrilled to see what it’s going to do for the Bitcoin ecosystem.

Guess #3 – there’s no need to use cryptocurrency for ordinary people

Now you may start to throw some stuff into your screen but that’s unnecessary.

Here’s a deal, until the current fiat system exista and cash is still allowed in most of the countries, there’s no way a vast majority of people will start to use something outside the sytem.

Obviously, everybody who are on Steemit are ahead of the game and understand the benefits and potential of crypto but your mom or your girlfriend may not even care about Bitcoin or Dash, or Ethereum, or whatever the currency you may introduce to her.

People like cash and people like plastic. It is easy to use, it is accepted wherever you go and it is real, meaning you can hold it in your hand.

Therefore, I believe in order to make Bitcoin (or any other cryptocurrency) work for everybody we have to apply a few things:

Start banning the cash in all of the countries.

In this way people won’t have a choice rather than using digital payments. Obviously they may still continue to use bank transfers but the trust for the government will be destroyed completely so the only alternative will be cryptocurrency.

Make a ton of amazing top-quality crypto-related apps that are so damn simple that you won’t even notice the difference between paypal, facebook or any other regular app.

Currently the only app that is in the process of development and has such characteristics is Dash Evolution. I’m very bullish on this one because it can set a standard for the future apps.

There’s got to be a proper educational system about finance in place on a very global level.

Since TV is manipulated by the government, the only way is to reach out to huge influencers that can make an impact on millions of people’s lives. However I believe this is a very challenging task but if it is done, the result would increase tenfold.

Technical issues and important decisions have to be resolved quickly.

This is a huuuuuge one. We all know that scalability debate about Bitcoin is going for a very very very long period of time, and it still haven’t been solved yet. Some people support SegWit, another don’t, recently Antpool mined its first block with Bitcoin Unlimited so there’s a very weird stuff going on.

Why not to create some system that will allow people who have the biggest impact and have the most experience in the industry vote on every major decision? Again, this approach have been implemented by Dash, and it works awesome. Basically it eliminates every headache that may encounter on the road, no matter the difficulty.

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In any case, for as long we have 95% of people who think the same old way despite of all of the things the governments do, it will be so hard to create a new global currency.

However I still believe that the future is bright and we have the power to change it. All of us, and you too. We have to start talking about crypto, we have to start using and accepting it wherever we can, and that’s how we create a new economy.

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