One of the more interesting things I’ve seen over the last few years is the rise of cryptocurrencies. Bitcoin is the largest of the cryptocurrencies so far. It seems to be a natural progression that eventually the world will adopt digital and nation-less money. However, it is kind of interesting that we are hearing about all of these new cryptocurrencies all of the time. Some nations have come out and banned Bitcoin. Last year the value of the Bitcoin spiked and it brought a lot of attention to the currency.
Bitcoin got its start in 2009, but has really come into popularity in the last couple years. I don’t think Bitcoin is going to be around forever. I think Bitcoin is an innovative idea that is working to test ideas about the future of money. With the way technology is going and increasing, it just kind of seems obvious that the future of money is going to be in digital format. When everyone is carrying things like smartphones these days, I believe payment using devices like a smartphone will be eventually become a secure and regularly accepted way to pay for things. Our money is already basically in a digital format anyways. I basically never use cash ever. My check hits the bank on payday and the bank cards are used for every transaction. Whether I would be spending dollars or some sort of cryptocurrency would not really make much of a difference.
They are going to keep coming out with different versions of crytocurrencies, but I would not recommend buying into anything at this point. You would probably lose your money. I suspect some of these crytocurrencies are just short term financial schemes to pad the pockets of the creators involved. Even with Bitcoin being the first and largest, its value is still very volatile. Unless you are looking for some kind of short term risky investment, I would suggest staying away. I imagine one day the world can standardize something like this and agree on a currency acceptable all of over the world. I’m not an economist, but I imagine something like this could help stabilize financial systems over the world. Especially since one of the things about cryptocurrencies is that they are usually limited in the amount that can be circulated. This is to simulate the limited amount of precious metals and to solve some of the problems with currencies like the dollar. In the US, the currency is devalued when more money is printed. This has become a trend and is devaluing the money at a quick rate.
Again, I’m not an economist so do your own research and form your own opinions. I think cryptocurrencies will end up being a good thing when the time is right. I would not suggest being an early adopter. It is the wild west of cryptocurrency and it will be interesting to watch and see how everything plays out over time.
Photo Credit: Ava Callie Photography. Copyright 2014