I’m sure that many of you have heard of cryptocurrency. You might not be familiar with that term but most people have definitely heard of Bitcoin. Imagine in this new digital age that we live in, doing away with all paper and coin money, and converting to digital money throughout the world. Well, folks, I’m here to tell you that it is happening and happening worldwide.
After the October 2008 bank robbery famously named “the financial crisis of 2008” which cost many people worldwide, their jobs, homes, and life savings. Businesses were bankrupted along with several countries also. All entities aforementioned became very angry with the Wall Street bankers who robbed them. Since that unforgettable time, people have been searching for a different way to conduct financial business which takes the power and criminal element away from the big bankers or better yet “the bank robbers.”
In January 2009 a new type of money was introduced to the world, a cryptocurrency or digital money, known as Bitcoin. Cryptocurrency allows two people to transact an exchange of goods or services with total transparency and no regulating body of people who can manipulate any aspect of the transaction. Since the creation of Bitcoin, many people, businesses, and now countries are following the trend and slowly converting from the normal corrupt paper and metal money system that we have been using for centuries, to the digital system we call cryptocurrency.
So, what is cryptocurrency? To answer this question I must first explain that we have been converting to the use of digital money since the late 1980s. When I began working in the 1970s people were paid with either cash or paper check. Starting in the mid to late 1980s direct deposit began being implemented whereas on payday no one received cash or a paper check but rather zeros and ones were used via computer to inform a person how much money they had at their disposal. The direct deposit was the inception of digital money.
It is normal today for most people not to possess paper or metal currency. Debit cards and credit cards are the way that most of the world transact financial business. I do remember people fondly referring to the use of credit cards and debit cards as the plastic age but in reality, there is no transference of tangible money, its just zeros, and ones on a computer screen. Nothing real! In reality, we as people worldwide have been using electronic/digital money for some time but we are now putting a name to this digital money and calling it cryptocurrency.
The technology used with cryptocurrency is called the blockchain. The blockchain is a network of computers in separate locations around the globe, which hold a record of any transaction made with cryptocurrency. By having a transaction on many computers at different global locations it is almost impossible to manipulate a transaction or create a fraudulent misrepresentation. In other words, it’s difficult to engage in corrupt activities using the cryptocurrency method. Also, businesses are switching from stocks to using crypto coins as a means of raising capital to grow their business. Most people are unaware that there are about 5,392 cryptocurrencies being used and traded today.
Major businesses and banks worldwide have been quietly moving into the digital age while the public is being skeptical about this new digital money. Now entire governments are advocating and implementing cryptocurrency along with blockchain technology. The COVID-19 virus has helped this transition accelerate forward because this form of money doesn’t require human handling so there is less chance of the continual spread of the COVID-19 virus.
The European Union is in the process of creating and the digital Euro. Their plan was revealed in an article in the PositiveMoney Europe publication titled “Introducing A Digital Euro.” The EU is not the only major player in the game. China is on board with the change also. In a story released by the New York Times called “China’s Cryptocurrency Plan Has a Powerful Partner,” it is revealed that the People’s Bank of China is, in fact, pushing China into a leadership role in the age of digital money. Very few people know that there is a cryptocurrency called USDC and its value is worth 1 American dollar and backed by the American dollar and issued by financial institutions in America. The entire world is transitioning to digital money. So, why not you?
For myself and my family, I have begun educating myself about the digital world and digital money, I am investing in cryptocurrencies and blockchain technology companies. I am focused on the direction in which the world is going so that I can attempt to keep pace with the changes and benefit from these changes. On a daily basis, I read and research what is going on in our global economy so that I am not left behind. There is much that I don’t know and a lot that I have to learn. Being real about our changing society I can either learn about what’s changing and how to use the information to benefit me and my family. If I choose not to learn many opportunities will pass me by. In both situations, the transformation is happening with or without my approval and or participation.
“It is better to be prepared and not have an opportunity than to have an opportunity and not be prepared.” ∼Whitney Young∼ Consider enhancing your financial portfolio with cryptocurrency. The world is moving in that direction so why not benefit financially along the way. Until next week may you be safe, healthy, and prosperous.