Because not everyone in the crypto or blockchain sector understands the true significance of cryptocurrencies, others claim that they will undoubtedly change the world. Next to the internet, it is one of the greatest innovations of all time. What is the significance of its existence? It is not just because we can profit handsomely from it. There are more vital things to consider. In general, it has the potential to benefit humanity.
We understand that this is a form of decentralized digital currency that no one can control. But let us dive a little deeper. Let us strive to think with a visionary mindset. To have a better understanding, we must first review the history of money. Let us look at where it all began and how society worked at the time. We will look at how the monetary system evolved and how it is still in use now.
Money is a powerful tool. Those who control money, especially a lot of money, have power even now. And the ancient kings and queens were well aware of this. With them, the production of coins in gleaming metals such as silver and gold began. The old currency was then distributed to their respective countries by the government.
The rulers, through their warriors, forced the merchants and ordinary people to use the assigned coins for transactions and paying taxes. They do not have a choice but to comply. It is a bit violent, but that was the reality during the old times. To stay in power, the rulers implemented the so-called violence hack.
The monarchy before is now the state or the government. The king’s right to distribute coinage used back then is still maintained today. Printed money replaces the ancient coins. Nobody can print money on their own. You already know what is going to happen. Allow me to give you an example. Do you recall e-gold from 2008? This event was the first time an alternative currency tried to launch. It was first introduced in 1996, and the number of users and transactions quickly grew.
Do you recall what happened after the government became aware of this? The authorities went after the system leaders, accusing them of unauthorized money transmission, money laundering, and other offences. This is the issue with foes who are centralized. They are like spiders who cannot move tentacles if there is no head. The head is always the source of authority, and the state will always seek to eliminate it.
In China, there was a time when the first emperor (Qui Shi Huang, 260-210 BC) outlawed all forms of local currency. He assigned only one money so that he could dominate. And he did so by resorting to brutality and violence. The state or the government will not allow anyone else to disburse money because they fully understand the rule. The golden rule applies to kings, states, and nations: whoever controls the money controls the world.
Fast forward to the present day, when Bitcoin enters the picture. Satoshi Nakamoto, the unknown coder who invented bitcoin in 2008, discovered a decentralized way to tackle the violence hack. Satoshi was well aware that the government would not permit anyone to create a currency other than their own. They want to stay in command. When bitcoin started, though, the situation changed.
Bitcoin has been around for almost a decade, yet the government has yet to dethrone it. On a centralized system, they can accomplish this, but not on a decentralized system. Crypto fans believe Satoshi Nakamoto chose obscurity. He vanished after distributing his hard-earned bitcoin to protect himself. They agree that the government will go after him.
Returning to the topic at hand, Bitcoin possesses several remarkable characteristics like resistance to censorship and violence. However, we can already see most of these features in other cryptocurrencies. But what precisely is cryptocurrency’s true power? This is the ability to print and distribute money without the need for a central authority.
Through a decentralized cryptosystem, everyone can participate in the process. One can be like a ledger for every transaction, a miner, a user, or a trader who operates through reliable and secure crypto trading platforms like the Bitcoin Era platform.
However, there is a snag. And it is this power to distribute money. Do you believe that today’s cryptocurrencies, such as bitcoin, can disperse money? We can see that only the largest miners receive the highest bitcoin payouts. It signifies that it is not dispersed evenly. The same is true for other cryptocurrencies.
The majority of them are still undergoing centralization. However, it is important to note that digital coin is still a relatively new concept. Many individuals predict that a cryptocurrency will arise in the future, implementing a more orderly coin distribution.
We can compare economics to a game. Every person who interacts with the system is a player. They are our families, friends, or all of the employees. They participate solely to increase their earnings. However, if the money is undistributed, the game will not begin because no one can play.
What would you do if you got the task of distributing money to the network? Of course, you will keep some for yourself, and you will set the regulations to suit your needs. Rulers have been exercising this system since antiquity, and it continues today. The network rulers are kings, corporations, and aristocracy, the most powerful people in society. Money is only flowing in one direction, from top to down.
Cryptocurrency wants to solve the tendency of anyone to become greedy as they have control in the distribution of currency. For this reason, many people have started crypto trading now. Crypto enthusiasts think cryptocurrency is not just an ordinary technology. They believe it is revolutionary.
We can tell that some governments are ready to adopt blockchain technology based on current occurrences. China, for example, has stated that its cryptocurrency will be released. It may be a win-win situation for the entire cryptocurrency ecosystem. But, what is the motivation behind this? Do you believe the government will move toward a more decentralized system? Will they leave the control to the people? Experts in the field of crypto disagree. Yes, they will use blockchain technology, but centralization will continue.