Everything right about Crypto

I consider myself a gen z even if I'm just a millennial. Yet, I had hard time adapting to crypto as I did not understand the basics of money. Few months ago I cracked the code of money and argued myself "money is just a shared belief of value, in a inherently valueless item". You can read the article here. Consider Gold, which nobody eats, yet considered valuable, not only as a conductor, but as a useless collectable item. You will find them stacked in underground's of most of modern banks. Similarly printed papers with green numbers are considered valueble by humans. So, money is just a shared delusion of millions of people. Let's look at some characteristics of currency in general.

Bitcoin

Fundamental characteristics of currency

For something to be considered as currency, it should have following characteristics.

It should be difficult to make, or harvest. [Otherwise people will start harvesting more creating an inflation - Gold is inherently difficult to find in large quantities, so are dollars but what about crypto?]

Large group of people should agree on its value. And agree to use it in trade. [ So Gold is not a real currency, yet people believe its value hence can be used as currency if needed. But can be cumbersome to carry everywhere in your wallet. Again what about crypto?]

Everything right about crypto

As you can understand not all, but some crypto have these two characteristics. Consider bitcoin. There are only limited number of bitcoins there will ever be in circulation. As numbers are limited, when everyone needs it it increases in value over time. But most importantly there would be no inflation! No government can print out more bitcoin even if they wanted. The price of bitcoin only will depend on its demand and limited supply, which is fair. And also because of the block chain technology, everyone would know who owns how much bitcoin they own and where they move over time. I can see with this regard that bitcoin as a more people oriented, futuristic currency than gold or even dollars. I am sure any government would agree where people trade without their influence unless its a universal government. But if all the people in the world wants just that, that will be an unavoidable future. Crypto currency seems to be increasing more than ever against all odds because of these reasons.

Future

More than ever we are seeking freedom from artificial boundaries the wealthy people have created with the help of ruling partes. And crypto seems to be a one step forwards taken by people. It looks more like a global movement against corruption than promoting just that. But I see some loopholes. Consider crypto with unlimited supply. If someone stepped in and decided to put out more Ethurum in the future, it will reduce the value of what you already have. So, I would be very careful if I ever put my hands on a crypto with unlimited supply.

So far I have written positively about crypto. But why I had hard time understanding the value of it? It had to do with the generation gap. The gen z or the crypto lovers generation were born In a digital screen era. So digital screens are something persistent in their world. But we on the other hand have seen a world without them. We have seen how fragile hardware and software can be. Systems although so robust, can be wiped out entirely just by a global energy crisis. A threat of a computer virus might shake the belief of people in crypto. But I see benefits of a global currency outweighs above risks.

Global trade will be free of manipulation by rulers. Boundaries of countries which are artificially made would nolonger will mean anything. Crypto might create a platform for a universal ruler and an ethical framework for everyone to function and be treated equally. It's just a dream, a good dream, a futuristic dream. Maybe in 50 years humans will come to these consensus when they understand co-operation will move development faster than artificial boundaries they created.

What do you think about future of crypto? Are you fascinated by the concept like me?