The world has moved on. Again. In the beginning barter was the accepted way to exchange goods and services. I'll build you a house if you give me a couple of cows and a pig. Simple. Then the world grew and we needed a more tangible way to exchange between different societies. Enter the precious metals. Gold and silver become the foundation of currencies around the world so that we had a universal way to pay for goods. The world continued to grow and eventually the needs for goods and services exceeded the worth of gold. Inflation is born. To combat inflation governments create fiat money. That is to say money that has nothing backing it except the word of governments to pay back the debt in full through trade of commodities and services. The world continues to need more, conversely debt continues to grow. So more promises are made and the value of money shrinks while the price of goods and services climb. The whole of the world is in debt and there is no way to solve that based on our current financial system.
Enter cryptocurrency. Cryptocurrency is basically a mathematical code written in strong cryptography on a blockchain. When the blockchain is written it decides how much data it will create and how long it will create it. Cryptocurrencies are limited and controlled by the blockchain, and the blockchain itself cannot be altered. I'm not going to get into the particulars of blockchain technology because I don't know very much about it but in my limited understanding I can say that once something is written to/from the blockchain it is secure and cannot be changed. So how can cryptocurrency solve inflation? If we start changing the current financial system to blockchain technology then we could begin to set the amount of capital we have to use. Further on, every government could create their own forms of cryptocurrency to use for all transactions. Since the blockchain has a definitive end we will know exactly what there is and what is left to be made. I can see how there would be a problem with what each is worth based on investors, but over time we could possibly adopt a universal blockchain to handle all transactions between governments globally. I see a world in the not to distant future where everything that is done digitally will be done on some iteration of a blockchain. The technology will undoubtedly evolve and mankind, in turn, will evolve with it. Look back over the history of man and money, you will see that this is just the next step in our financial evolution.
This post and all of the information in it is pure conjecture based on my limited knowledge of both the blockchain and cryptocurrency. That being said, I truly believe that the blockchain is the next big step in the evolution of the digital age and that cryptocurrency will eventually be the standard for all financial interactions in the world. I invite any knowledgeable individuals to correct any of my misconceptions and educate me in the comments. Thank you for reading this article.
