What does the Big Bang Theory of the Universe have to do with bitcoin and cryptocurrencies? Read on and find out!
Cryptocurrencies: What’s All the Fuss About?
Over the last two years, I’ve had some interesting discussions with people about cryptocurrencies, most notably, Bitcoin. Some of these discussions have lasted for an hour or more, but the one commonality about all of these conversations is that not one of them ended in any kind of closure one way or another. That is the nature of the cryptocurrency phenomenon. It sparks heated debate amongst people.
The strangest thing about conversations regarding cryptocurrencies that I’ve seen are the number of people who argue for or against them who don’t even fully understand what they are attacking or defending. This is sometimes troubling, but understandable given how early we are in the grand scheme of things. When I hear people say that the end is near, it makes me realize how much fog still remains around the real driving force behind cryptocurrencies, the blockchain. I won’t get into the nature of blockchain technology in this article, but I recommend reading about it on a decentralized knowledge base (think decentralized Wikipedia) that runs on the blockchain itself, Lunyr:
https://lunyr.com/article/Blockchain
Long story short, you can think of the blockchain as a digital ledger that is decentralized, and therefore not controlled by any one single entity. It removes the need for a middleman, the primary economic example being banks, and puts the focus on peer-to-peer interactions that are verified and maintained by a large network of nodes. The technology has primarily focused on digital currencies but can and has been applied to many other aspects of life.
Where Are We and Where Are We Going?
An important thing to remember is that the internet itself was first invented in the late 1960s and has been evolving since then. Bitcoin and the blockchain were conceived in 2008. Things may move a lot faster these days in terms of adoption, but given the internet example, it’s clear we still have a long way to go.
Being the science nut that I am, I like to look at the timescale of blockchain technology in relation to the creation of the Universe. I know, just bear with me. In this example, think of the blockchain as the Universe.
Our current model of the Universe states that it was created approximately 14 billion years ago in a single triggering event known as the Big Bang, in which the Universe expanded from a single point of infinite density. It took approximately 380,000 years after the Big Bang for the Universe to become transparent. Until this point, the environment was hot, hostile, and chaotic - a soup or fog where no light could get through. I feel as though that’s where we have been over the last year or two regarding the blockchain. Cryptocurrencies themselves are like the initial particles that made up the early Universe, constantly colliding together, but eventually formed atoms which, when the early Universe cooled down enough, allowed all the trapped light that was formed during the Big Bang to escape.
Still with me I hope! In our blockchain timeline, I believe this transitional phase from hot and chaotic to cool and transparent is happening now. There is a shift occurring behind the scenes while everyone is busy debating the validity of cryptocurrencies, similar to the shift that has occurred many times before in human history. From horse and buggy to motor vehicle, paper records to electronic databases, the message is clear: the times they are a changin’.
Back to our early Universe example, after the trapped light particles escaped from the soup that held them back, the Universe was plunged into darkness. It wasn’t until 400 million years (almost half a billion years) after the Big Bang occurred that the first stars and galaxies began to appear.
So, where does that leave us in our blockchain timeline? I believe that this period of darkness is almost upon us. The initial fog is clearing, companies are starting to utilize the blockchain, and full scale adoption is imminent. However, this adoption will not be without resistance as we see every day in the news. For now, cryptocurrencies are leading the way to bigger and better things, but just like the formation of the known Universe, it will take time for things to come together. But once they do, we will be in a new age and when we look back at 2017 and 2018, we will see it just as we see the early Universe - a noisy, chaotic period that gave way to massive growth and infinite possibilities.
The Fate of Cryptocurrencies
Naysayers have been predicting the death of bitcoin with every correction, but let’s be clear. Cryptocurrencies are not going anywhere. They are a proof of concept for the blockchain, a way to validate its usefulness. Some will fade away, others will be held like gold and jewelry, while others will be validated as alternatives to today’s financial institutions and traditional currencies.
Most importantly, they will serve as a way for the approximately 2 billion unbanked citizens in the world to function without the need for financial institutions and middlemen. As long as blockchain adoption continues to push forward, the cryptocurrencies that fueled this adoption will continue to exist as the building blocks of blockchain advancement, just as the early particles of the Universe still form the building blocks of life today.