Blockchain, the technology behind Bitcoin and other cryptocurrencies, is a big deal. Huge. Blockchain offers a degree of security, trust, and anonymity, so often sought in contracts and financial dealings, yet seldom achieved.
Imagine if you were to buy a beautiful, three-bedroom home in a nice neighborhood with a yard and a garage. The day you move in with your family, three men with baseball bats burst through the front door and order you to leave. “This house is the property of Carlos Danger,” they tell you. You don’t want heads of your family to be smashed to a bloody pulp so you follow instructions and scram. In most parts of the U.S., you would be calling the police in hopes of justice. In many other parts of the world, that would be that; end of the story, end of the house.
It is only because we have all of the other social systems in place, including the police, the legal system, the jury system, jails, insurance, banks, currency, Department of Buildings, Department of Sanitation, Fire Department, Real Estate Boards and elected officials that our ability to purchase and own property in the U.S. is somewhat secure. In many other parts of the world, it is not.
Blockchain provides a methodology for the same kind of security without the need for rangers with guns, or police with Tasers, or lawyers with Court Orders. Because blockchain provides this new found security, trust, and anonymity, all sorts of new currencies will appear representing all sorts of values and worth. Remember Airmiles?Airmiles are valuable forms of currency for travelers. There will be cryptocurrencies for travel, for health, for sports gambling, for online gambling, stocks, international monetary trade, insurance, cybersecurity, petrol and just plain old spending money. Many coins will be very good ideas. No one can predict which currencies will be the most valuable but many will be around for a long time to come.