What is value? Merriam-Webster's first and second definition of the word are "the monetary worth of something" and "a fair return or equivalent in goods, services, or money for something exchanged". Makes sense because that's how the word is most commonly used. The very nature of cryptocurrency would bring those first two definitions to mind. For me however, cryptocurrency's value is more in line with the third definition listed; which is " relative worth, utility, or importance". I believe the value of cryptocurrency goes beyond monetary. The "relative worth, utility, or importance" lies in the blockchain technology. Let's explore this further.
For one, it allows the creation of digital assets that can be tracked in real-time without the delays of intermediaries for verification. How? Trust is built into the transaction by means of logic in the network because the blockchain becomes the method of validation. There is proof of ownership due to time stamps; and it's secured cryptographically because it's mapped onto the blockchain. Therefore, you don't need any institutions between you and your peer to conduct transactions. Just like the internet forced newspapers and travel agents to rethink and evolve their roles, blockchain will force banks, manufacturing, social media, healthcare and many others to rethink and evolve.
Two, regulatory and legal frameworks will have to be modified. Currently, that framework either doesn't exist for some industries or it acts as a barrier (i.e. the laws created in NYC that allowed some local politicians to create a whole new business market for themselves in crypto regulatory consulting). I'm not saying the modification should be more restrictions and oversight. I'm saying the frameworks will need to be adjusted in favor of how the masses are utilizing the technology. To have it exist just as it was intended to; as a decentralized, distributed ledger. The legalities should be adaptive to the growth rather than hinderance.
Three, which is the core of this story, blockchain is a digital medium revolving around VALUE; unlike the internet itself which revolves around information. I find it valuable that blockchain can significantly lower my costs for conducting business. I can search details of transactions, create smart contracts, and exchange assets with little to no fees because of the autonomy of the ledger. Business models can be upgraded with the creation of native payment systems that can function without banks or credit card companies. That alone would create tangible and intangible wealth because you're no longer obligated to the fees of intermediaries and you would gain time. The dynamic between companies and consumers would change as reputation systems are built on economic and social capital. More trustless transactions will occur; which means more of the system is controlled by individuals rather than intermediaries like credit rating services and rating agencies. WE THE PEOPLE will have power.
Wouldn't you like to own a home, start a business, get a loan, buy a car, share data securely, and/or actually have faith in the voting system? Would you like to have these things at a lower cost and faster? Would you like to have access to the voting system because it's transparent, traceable, and unable to be manipulated? ALL of this is possible, and some already happening, with the use of blockchain and exchange of cryptocurrency.
I've only scratched the surface, but I felt these are points that will hit home. What do you feel is the value of blockchain and crypto?
Credit reference: "Blockchain: Blueprint To Dissecting The Hidden Economy!-Smart Contracts, Bitcoin, And Financial Technology"-Tony Scott
Photo: Steemitimages