LIVING ON-CHAIN
To many across the globe, blockchain technology and cryptocurrency are novelties, even though these industries have existed for decades. Those in the industry have tagged crypto to the future payment system which will dismantle the current financial system, making it obsolete. Although I find this narrative quite interesting, I want to share a different perspective on the matter that gives a more present outlook on cryptocurrency and the use of blockchain technology.
My view on blockchain technology is quite different from many people in this industry mainly because of how I got into this space. My first interaction with blockchain technology was via the web3 platform, Hive. This was long before the word ‘web3’ was ever a thing, and I had firsthand experience using this technology, which has shaped how I view this industry.
I would like to emphasize the ‘usage’ of blockchain technology because it is at the core of everything crypto, however, many people do not understand or even use this technology directly. Most people interact with blockchains via proxies like centralized exchanges, hence their futuristic views on blockchain technology. To them, this space is more speculative than practical.
Blockchain technology as used in the crypto space has various use cases other than being a store of value or means of exchange. In its basic form blockchain technology is a data-capturing system, and how this data is being used is changing. Now there are fungible and non-fungible tokens (NFTs) which are fundamentally the same thing (data captured by the blockchain) but used differently. In essence, value is being captured differently through art, interaction, work, etc, and transferred across the globe seamlessly. This isn’t happening in the future but now.
In addition, blockchain technology and cryptocurrency aren't here to dismantle the current financial system. This is a debatable narrative that has many boomers in the government confused and afraid, hence their anti-crypto policies. New technologies are indeed disruptive and blockchain technology and cryptocurrency threaten the current establishment, however, I believe both can co-exist offering the masses alternatives.
Cryptocurrency is not to be feared, and neither is its impact reserved for the future. There are numerous ways in which this technology and industry are changing the world currently, namely:
FACILITATES CROSS-BORDER TRANSACTIONS
One of the major problems cryptocurrency and blockchain technology solves is cross-border payments. This might not be an issue in most Western countries but it is just a fundamental issue in most third-world countries like Nigeria, Ghana, and Venezuela. These countries are now plugged into the global economy thanks to (cryptocurrency and blockchain technology) which has not only led to financial inclusion but also facilitated significant economic growth through technological advancement.
Also, cryptocurrency has reduced the cost of cross-border payment by removing the middlemen i.e. banks. Now individuals and institutions can engage in peer-to-peer transactions that are fast, secure, and in some cases feeless.
Cryptocurrency and blockchain technology is creating job opportunities for millions of people across the world. In 2022, there was a 395% growth in crypto job openings, and the crypto industry accounts for 0.13% of the entire job market, this might seem insignificant but also consider that this is an industry with a market cap less that of Apple Inc.
It is also important to state that these jobs cut across industries and are not restricted to FinTech. There are accountants, creators, and lawyers who are specialized in crypto-related activities. So it is safe to say that this industry is multi-dimensional and impacts the growth of other industries as well.
The crypto industry provides investment opportunities through various avenues such as decentralized finance (DeFi), stablecoins, and non-fungible tokens (NFTs). These financial instruments foster the growth of the crypto space and also enable individuals who were previously excluded from traditional venture capital spaces to participate in wealth generation by reducing barriers like capital requirements and access to information.
Furthermore, the industry is revolutionizing fundraising methods through Initial Coin Offerings (ICOs) and Decentralized Autonomous Organizations (DAOs). This has made funding more cost-effective and accessible to smaller projects and communities. By providing funding to innovative ideas, the crypto industry has helped accelerate technological development within and outside the crypto space.
Cryptocurrency also depoliticalizes the global economy. Now depending on your political inclination, this might be a good or bad thing. If you are pro-establishment you want the government to regulate our fiscal policies. However, if you are like me and you have little trust in your government and its establishments, you want more control over your finances. Transparency is key in the future of finance and many traditional financial institutions cannot offer it to the masses.
Those who trust the system and choose to play within its perimeter can carry on. However, those who do not trust the system have the alternative through cryptocurrency and do not have to risk financial exclusive. This is the beauty of the world we live in today.
Now many believe that crypto would dismantle the current financial system. If that is ever the case then I believe it was not worth saving in the first place. A system that cannot protect itself isn't worth having in the first place because it's porous and susceptible to malicious attacks and manipulation by bad actors. What we should strive for is a system that is self-regulated and transparent, and this is what cryptocurrency offers.
The crypto industry has moved past the scope of speculation. It has become the backbone of technological advancement across the globe and its impact is been felt by the millions of people actively participating in the development of this industry. It is also revolutionizing how we perceive, store and transfer value.
So we all must begin to see this industry for what it truly is–an important part of our present global economy. It cannot be wished or regulated away. Many people like myself have come to embrace cryptocurrency as a way of life and living on-chain
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