- The transparency factor
- How cryptocurrencies became so popular in Africa
- Ease and Elimination of the Middlemen
- Bitcoin vs Ethereum: They are NOT the same! What's the difference and why should you care?
- Availability of Several Options
- When Did Cryptocurrency Become Popular?
- Value is Dependent on User Participation and Not the Economy
- Decentralized and Not Affected by Traditional Banking Policies
- Why are Cryptocurrencies So Popular Among Certain Demographics?
- Emerging Security Features
- What is Cryptocurrency? [Everything You Need To Know!]
- Extra Features
- The 10 Most Important Cryptocurrencies Other Than Bitcoin
- Why Africa prefers crypto
Alright, I’m not here to state how wonderful DeepOnion is this time, instead, I will be highlighting why I think a cryptocurrency dominated future would be great.
The transparency factor
No doubts, cryptocurrencies are growing so fast than envisaged. Bitcoin entered the market quite unceremoniously and is currently holding its place as the market leader in less than 10years with millions of users globally. It’s quite interesting how Bitcoin became so popular with several businesses adopting it as a payment method. Since this dominance, a host of other alternatives (altcoins) have emerged with various features, some competing fiercely with the Bitcoin.
Looking at the emerging trends in the crypto market and the surge in popularity of a digital asset relative to the other, one might expect to witness several tipping points in the future.
A tipping point is a situation where a cryptocoin supersedes another in terms of market capitalization.
How cryptocurrencies became so popular in Africa
This is often driven by popularity and acceptability. A similar scenario almost took place in May 2017 when Ethereum’s market cap fiercely closed up on Bitcoin’s market cap. This competition and the rising tension that ensued in the camp of investors bring to consideration the possibilities of a cryptocurrency dominated future where cryptocurrencies jumps ahead of fiat money in terms of usage.
Here are few of my reasons why I think this might be actualized in the long-run:
Ease and Elimination of the Middlemen
Utilizing public and private keys, it is easier to transfer funds. This is usually done at minimal processing fees compared to exorbitant transaction fees charged by financial institutions.
Considering the growth of cryptocurrencies such as the bitcoin against the dollar in the last one year, which is quite dramatic, one might regard it as a good hedge against the characteristic inflation of the dollar.
In order to allow some flexibility in the trade zone, adopting a cryptocurrency payment option can help to carry along as many people as possible.
Bitcoin vs Ethereum: They are NOT the same! What's the difference and why should you care?
In other words, people don’t have to present fiat money to buy goods.
Availability of Several Options
Another prominent fact about cryptocurrencies that might influence its preference to fiat money in the future is the availability of options. Based on the characteristic features of individual cryptocoin, users have an array of options to select from.
When Did Cryptocurrency Become Popular?
It is quite easy for users to interact with these digital currencies because usage is not limited to only one or by geographical boundaries. We can have users transacting with multiple cryptocurrencies at a time.
In a way, users will help to preserve the value of these digital assets in the long-run.
Value is Dependent on User Participation and Not the Economy
Another reason is that cryptocurrencies involve peer-to-peer networks and are built on open source.
As a result, its value in the long-run will depend on individual participation and not on fiscal policies or the economic state of a country as it’s the case with fiat currencies. Also, interest rates are solely based on the network and not on a central bank’s decision.
Decentralized and Not Affected by Traditional Banking Policies
Cryptocurrencies are decentralized and apart from this, they are not susceptible to inflation.
This makes it a suitable medium of trade compared to fiat money which is managed by centralized banking systems.
Why are Cryptocurrencies So Popular Among Certain Demographics?
Giving the decentralized nature of cryptocoins, no government will be able to print more of them to cause inflation. Also, its value is dependent on the forces of demand and supply and can’t be manipulated.
Emerging Security Features
One of the major arguments put up against cryptocurrencies involves privacy/security. The blockchain obviously lacks a measure of protection for users against cyber criminals.
This has been a major issue since the advent of the bitcoin and a valid reason why many believe a cryptocurrency dominated monetary system would be disastrous. Several altcoins were developed to fill this void.
While many of these practically fizzled out of the market and out of reckoning as they couldn’t stand the heat, others failed to live up to the expectation of providing anonymity.
Whether a cryptocoin will offer 100% anonymity or not is a function of the frameworks put in place to provide obfuscation along the blockchain. For instance, while ZCash is based on the zk-SNARK encryption and Monero utilizes a cryptonote feature to achieve this, DeepOnion on the other hand is Tor-based.
Integration with the tor-network presents the much sought anonymity. The Onion Router (TOR) was specifically created to enable anonymous communication.
It ensures this by directing online traffic through an overlay network with thousands of relays. It makes tracing of internet activity to a particular location or certain individual quite impossible.
DeepOnion’s integration with the tor anonymity network might just bring an end to discussions bordering on lack of privacy.
It brings to live the possibilities of a safer cryptocurrency dominated monetary system.
What is Cryptocurrency? [Everything You Need To Know!]
Users can be at ease while performing transactions, knowing that no one would be able to pry on them or hack into their wallets to cart away their funds. This is expected to become a bit advanced with the soon coming DeepSend feature which would further prevent traceability of transactions.
This feature will utilize a multi-signature method to conceal transaction routes. If secured transactions on the blockchain can be ensured, who says transactions can’t be carried out in cryptocurrencies instead of fiat money!
Tokens get launched for specific purposes such as charity, travel and more.
It is not uncommon to have cryptocoins with extra features, some of which might not be related to its primary purpose as a digital asset. A good example is our own DeepOnion with the DeepVault feature which allows the storage of file hashes on the blockchain for the purpose of verification. With this feature, it becomes easier to detect modifications to a file.
The 10 Most Important Cryptocurrencies Other Than Bitcoin
A feature like the DeepVault makes the use of cryptocurrencies more interesting. It mimics safe deposit or custodial services rendered by commercial banks for the storage of valuables, although what is stored in the case of DeepVault is intangible.
Well, with improved technology, we might just have an advanced feature allowing storage of tangible objects in future.
Where legal tender is concerned, liquidity matters. In other words, a form of money should be able to pay for anything at any time. This largely depends on acceptability. This could mean new infrastructure (automated systems) would have to be put in place to curtail the inherent challenges.
Why Africa prefers crypto
Cryptocurrencies are coming up with novel means of achieving this in no time especially in the e-commerce arena. An instance is DeepOnion’s online payment plugin which will soon be made available on the WooCommerce platform.
Therefore, with more users adopting cryptocurrencies and the reality of cryptocurrencies being more valuable than gold and the dollar, we might just have to play a bit more of the waiting game. This will largely be driven by anonymity features, transaction confirmation speed and ancillary functions presented by a cryptocoin like DeepOnion.
To be factual, the likelihood of a cryptocurrency dominated monetary system is beyond anyone’s control and due to the fast-paced nature of crypto-related issues prediction is tough if not impossible.
Moreover, there are possibilities of such predictions getting overblown.
At the moment, we continue watching this space as we invest more and get richer. I initially stated this piece wouldn’t be highlighting how wonderful DeepOnion is; I guess I didn’t end up doing that. Well, if I did a bit of that, I just can’t help it!