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Cryptocurrencies: Is There A Future?

Cryptocurrencies have attracted a lot of negative publicity. Perhaps largely due to the prevalence of crypto-scams that have become such a notable problem, that social media giants Facebook and Twitter have banned all ads promoting any business endeavours involving the buying and selling of Bitcoins and other digital currencies.

Some financial advisors warn that it's all just a wonky structure bound to come crashing down because in essence, it's making money out of nothing. Or in other words, it's the biggest ponzi scheme that the world has ever seen.

Others, like Daniel Masters, former banker in charge of JP Morgan's global energy trading desk, begs to differ, saying that cryptocurrencies are in fact nothing short of fuelling a financial revolution.

Big words right there.

Structured Or Wonky?

Masters recently explained to a reputable financial news agency how distributed ledger technology is affecting a true democratic element to peer-to-peer financial transactions, much in the same way that the internet has done for the distribution of world news.

When questioned about the pitfalls of a currency not actually backed by any disposable assets, Masters contended that no financial leakage could be foreseen at this stage. Which can, of course, be interpreted as not yet.

It would be completely loopy not to mention that Masters currently manages cryptocurrency portfolios in excess of $800 million, including Bitcoin, Ethereum, Zcash and Monero. In other words, Masters may or may not, have an agenda to take care of.

Surviving Demise

The problem with blockchain-specific ideas is that very few people actually understand the value of how it all fits into the bigger financial picture, and unlike the slots NZ has to offer, there's no clear cut way of winning. Initially, Bitcoin became (in)famous when Silk Road came crashing down in 2013. Considered to be the Wild West of the world of e-commerce, Silk Road was the playground of document forgers, credit card detail dealers, wholesale drug dealers and gun runners.

The currency of choice for purchasing goods from the dark crevasses of the deep web? Bitcoin. In many ways, Bitcoin was the catalyst for the shutting down of Silk Road. The government became increasingly aware of the anonymous means to purchase underhanded and illegal goods due to the anonymous nature of the tender used to buy those goods.

Widespread panic soon broke loose in full glory. Holders of Bitcoins wanted to know what would happen next because Bitcoin was in essence, the lifeblood of Silk Road. And yet, when the dust settled and the dark underlords were forced to return from whence they came, no longer able to spread their dubious goods on a world-wide commercial platform, one element survived: Bitcoin.

The truth is, just as Silk Road changed the way we think about money, Bitcoin has changed the way that money changes hands. The only remaining issue now is to keep cryptocurrencies out of the hands of no-good-doers and use it for the good of the group.

Because removing anything from the hands of those who wish to retain ultimate power, is always for the good of the greater group.

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