If we want to direct our gaze towards the financial future, the most reasonable thing would be thinking about the cryptocurrencies: the digital exchange medium mostly known as virtual currency exchange. Central banks agree its dangers, its drawbacks, its relationship with money laundering, and the threat to the current financial system.
Often, banks are terrified with the evolution of cryptocurrencies, and even us show ourselves reluctant to change, what it is new. However, are banks currently free from illegal activities? How many dollars have been used to pay nuclear bombs? How many scams have been released in the past five years with 500-dollar bills? How many people have stop using these coins for this reason?
Since the birth of the Bitcoin in 2009, there have emerged many cryptocurrencies based on different features and protocols, but all agree on one point: the financial system makes a better world. They are struggling to get it, and its advantages may exceed its disadvantages. Today, we want to share it with you.
How many illegal activities are performed with cryptocurrencies?
Ten years ago, the first cryptocurrency was created. Since then, its evolution and growth have resulted in new digital media specialized in the sector. Crypto news, for example, says that, the ratio of legal to illegal activity in Bitcoin has flipped, according to Lilita Infante at the U.S. Drug Enforcement Administration. And only 10% of the transactions with cryptocurrencies are used for illegal activities.
The criminal organizations and activities involving drugs make up this percentage to hide money laundering and cross-border transfers. They have found something cheaper, faster and safer to perform their economic operations. However, while these individuals improve techniques to achieve its objectives, cryptocurrencies are also done to prevent such activities, to the extent possible.
Therefore, the system is evolving toward a blockchain technology that allows that, together with cryptography and distributed consensus network, privacy and security do not pass unnoticed. Transparency and trust are becoming two real and essential pillars of virtual currencies, as not only seeks a fast, simple and effective system but also a safe one.
Cryptocurrencies are overcoming their challenges
It all started with a dream: to create a cryptocurrency able to replace our current financial system. Objectives were anchored in the transparency of an instant and secure payment platform, powerful enough to liberate the poor of the world from the oppression of the Fiat currencies, as well as enable them to break the dependency cycle of financial banks. In this sense, cryptocurrencies have been an important step forward:
- The money is traceable.
- It allows the part of society which do not have access to financial systems to be and manage their own bank, so that it contributes to financial inclusion.
- Cryptocurrencies can occupy a key place in the economic possibilities of the people.
- It allows to reduce poverty.
- It provides the possibility of making transactions without intermediaries anytime, anywhere.
- Payments in cryptocurrencies are made instantly.
- It is cheaper, in addition to including a minimum transaction cost.
- Blockchain technology provides necessary security and transparency.
Challenges can sometimes be the major impulse to its overcoming. Those who have opted for the development of a decentralized payments systemknow this. Professionals who work every day to achieve better service and contribute to a secure system dream to turn this promise into reality.
You know that dreams are to comply with them, so, every day, in every step forward that are taking place in the cryptocurrency sector, we see another proof that the facts speak more than words.
The taxonomy of the cryptocurrencies
Having in mind what you have learned so far, how you classify virtual currency? It is perhaps the time to talk about the taxonomy of money, based on the shares of an issuer, the shape, the accessibility and transfer mechanism. With cryptocurrencies, the method changes, because it responds to a decentralized system for transactions without intermediaries. A peer-to-peer system.
Central banks have reacted, but, in this sense, no matter your point of view as what this reflects. The reaction is a symptom that something is working. It means that they have seen a real danger. Since the beginning of this trend, many economists have wondered what the real benefits of the cryptocurrencies were, and they have discussed its future. What does it different? Perhaps its value.