Many still question whether governments will allow cryptocurrency to go forward. To me, this is missing a major portion of the situation.
The discussion is really not about cryptocurrency. When I proclaim that cryptocurrency is unstoppable, that is the tip of the iceberg.
Actually, this applies to all data. Of course, this can be a double-edged sword as those with nefarious intentions have abilities they previously lacked before. Nevertheless, that is what often happens with technology.
At the core of this is distributed computing.
By operating a network of computers that are distributed throughout the world and not under the control of a single entity, we see how this is outside the purview of the legacy system.
This is a threat to that system while also creating new possibilities. It also highlights the weakness in the trust model that they operate under.
Here is the reason why I frame Elon Musk's plan with X in regard to Web 3.0. This is not simply a matter of social media platforms adopting finance.
Instead, we are dealing with a new paradigm led by distributed computing. Cryptocurrency happens to be a data set that is housed on these networks. Actually, on Hive, the data tied to a coin is no different than what is associated with a comment.
Both are simply data although they reference different things.
Open source is the magical elixir.
We are golden when dealing with software that can be replicated by anyone and simply placed on a computer somewhere. This can spread like fungi, quickly taking over a pond.
With open source software, the game becomes one of "whack-a-mole". New websites are set up providing access. Simply closing down the URL will stop that entry point. The challenge is another dozen can open.
It is important to note that cryptocurrency is just one use case for this the technology being developed. For many, it is the end, the only thing focused upon.
Instead, it is best to look at digital assets as part of a larger whole. For example, if there is a particular game which has tokens and NFTs, would one look at that as cryptocurrency? Or is the focus and discussion the game with the digital assets simply as a component?
I think the latter is the case.
Money is a tool. In this instance, it is simply a mechanism that allows for trade and the storing of value within the context of the environment created by those developers.
What cryptocurrency does is allows those assets to have tentacles outside the game itself. Here is where open source software enters, providing wallets, exchanges, and other key pieces of infrastructure.
One of the main arguments against cryptocurrency is the lack of privacy. This is certainly the case, for now.
We have seen a few attempts are enhancing the privacy. There are privacy coins along with mixers which can make it orders of magnitude more difficult to trail transactions.
That said, it is fairly transparent right now.
The question is will that always be the case? People look at the world through today's eyes. We do not know where the development will be in 5 years. It is likely that someone takes up this fight and produces something the industry can use.
In fact, Vitalik Buterin came out with a paper about privacy pools.
This shows how developers are already thinking of ways to add layers to the system.
Naturally, there will likely always be a hole in the bucket regarding centralized exchanges and fiat currency. The reality is converting to that currency will reveal someone.
However, as the use of cryptocurrency, especially stablecoins, grows as means of payments, the need for legal tender diminishes.
It will ultimately come down to people identifying what is needed for their ecosystems and building the programs that solve the problems. Over time, others latch onto the idea, especially if it is open source.
If privacy is an overriding issue the community feels is needed, it will be built.
And no amount of regulation will stop that.
Web 3.0 is going to alter everything.
This is much bigger than Web3. The former deals with the idea of advancement in many technological areas that radically changes both the physical and digital world.
Blockchains (or web3) is just a part of it.
Some call this the spatial web. It is a shift to a further merging of the two areas. We are going to see different access mechanisms such as mixed reality. Artificial intelligence is going to be a huge factor, with machines responsible for an even larger portion of the traffic.
Technology is providing more power to the average individual. This is having radical impacts in many industries. We covered how the entertainment industry, including broadcast television and Hollywood might be under assault as other players are able to utilize technology to create and distribute their product.
The idea is that we are going to have a non-siloed system that utilizes advanced communications along with personalization. AI assistants will be the norm, designed to scour the "world's database" to provide us with what we need.
It is all a part of Web 3.0.
In other words, this is not going to be stopped. We already know governments are screwed when it comes to AI. They cannot even put together legislation to adequately regulate crypto. How are they going to do that for AI?
This is not stopping. Cryptocurrency is, when you step back, just a small part of this transformation. We cannot underestimate the importance but it is not the entire picture.
For that reason, I will stick by the idea that cryptocurrency is unstoppable.
