Bitcoin and Blockchain technology are a new concept ofdigital coins and smart digital contracts which are still in their infancystages. This technology has the power to transform the way we do business bystoring records, guaranteeing the value of transfers, providing levels ofsecurity never before seen in the world of finance, and opening the possibilityto countless new uses we have not yet imagined.This cashless sort of payment with its golden feature ofmobility is going to modify the entire mechanism of secure payment activities. Itwas generally considered that email was the “killer app” for the earlyinternet, but in the world of programmable money Bitcoin has become the “killerapp” for the blockchain. What makes blockchain the most secured and reliable isits strong technical community and robust review process.
Cryptocurrency is a digital asset designed to work as amedium of exchange. These digital assets have drawn significant funds frominvestors, giving them a notable gain. Bitcoin is supported as the worldwidepayment system amongst other participating payment companies.Though its present capabilities are still finite, it offers acompelling vision of a possible future. For example, transactions must amusecertain rules before they can be accepted into the Bitcoin blockchain. Insteadof writing rules and appointing a regulator to monitor for breaches, which ishow the current financial system works, Bitcoin’s code sets the rules and thenetwork checks for submission.
A twisting point for central banks (G7 countries) will bewhen the bitcoin market capitalization exceeds the value of all SDR’s (specialdrawing rights) that have been made anddesignated to members. Another turning point will be the realization that thevalues of G7 currencies are devaluing against cryptocurrencies.The SDR and G7country currencies will be forced to change their foreign reserve weightingsand eventually include a basket of cryptocurrencies. In 2018, G7 central banks will observe bitcoin and othercryptocurrencies becoming the biggest international currency by marketcapitalization. Cryptocurrencies will also fulfil a new demand as digital gold.The central banks will start realizing that monetary policy for a global marketin cryptocurrency is unachievable.
You never know someday your driveless carmight be able to pay the neighbor vehicles to let you overtake when you arelate for the work. Who knows? The outcomes are endless and exciting.