Blockchain and cryptocurrencies are here to stay. We have seen the market continue to rise and overcome obstacles, and watching the success of blockchain technology makes us more confident each day in the bitqy strategy for our clients. Respected media outlets are also witnessing the value of distributed ledger technology (DLT) and are adding to the momentum.
Kc Agu recently outlined the need to at least consider cryptocurrencies in the Entrepreneur article Why You Can’t Afford to Ignore Cryptocurrencies and Blockchain Anymore. Agu sees the evolution of cryptocurrency and blockchain technology as being at “the point where they pose a serious threat, not only to banks, but also to other centralized control systems, such as payment systems, insurance companies, law firms, and even governments.” Governments and large financial institutions largely ignored DLTs for the past few years based on the idea that the technology was unstable and unreliable. However, as the market for cryptocurrencies and blockchain continues to grow at an accelerated pace, the benefits are becoming undeniable.
Agu makes the case that we should be highly interested in cryptocurrencies based on three primary factors that may be time sensitive. The first is that governments are mostly uninvolved with the technology at this point. China, Japan, the Netherlands, and a few other countries are beginning to experiment with their own implementations, but have not adopted any official applications as of yet.
Second, there may be some policy-related issues that arise in the short term. According to Agu, this is because “central banks still often doubt the overall stability of digital money and in the areas of value, privacy, susceptibility to cyber attacks and fraud.” With cryptocurrencies accounting for as much as $150 billion worth of digital money (and increasing every day), central banks will eventually create policies to govern their usage, or risk losing control of money supply.
Lastly, blockchain technology provides advantages in the marketplace, particularly for small businesses. Blockchain allows for smart contracts that are “drawn up and executed by decentralized, self-governed communities of small-business owners,” which eliminates the need for middlemen such as courts, lawyers, and insurance companies. The resulting simplification in the business process provides for lower operational and frictional costs like commissions and interest rates.
We strongly agree that the time to get involved with blockchain and cryptocurrencies is right now. As the market continues to grow and prove highly secure and reliable, individuals and businesses can benefit greatly from taking advantage of the technology early on.