Read the article in the light of following questions and answer them:

1- Crypto currencies are decentralized unlike fiat currency. Is this a problem? Why?

Fiat money is a government-issued currency that is not backed by a commodity such as gold. Fiat money gives central banks greater control over the economy because they can control how much money is printed.

2- What are the threats/roadblocks to the advancement of crypto currency?

3- What happens when Bitcoin supply reaches 21 million coins? How to ensure the continuation of the system after mining is over?

4- What do you think about crypto currency developments overcoming obstacles in question 3?

Is Cryptocurrency the Future of Money? Lets Take a Look

If you listen to the financial news, then it doesnt paint a pretty picture of the state of the global economy. Trade wars, ballooning government debt, overvalued markets, and record-low bond yields all add up to an economy thats teetering on the brink of disaster. Many obscure economists think that we could be approaching the end of the financial system as we know it. These analysts cite that if there were another liquidity or credit crisis like back in 2008, the global economy would not be able to sustain the hit.

As a result, the entire global financial system would collapse, leaving your bank account worthless as currencies evaporate their buying power. Sure, this is a worst-case scenario, but its a possibility. If something like this situation were to transpire, then what would we use as money? Some analysts believe that the advent of cryptocurrency signals an end to the fiat system. They expect crypto to be the new reserve currency to replace the dollar in times of a currency crisis and collapse. Lets examine the case for cryptocurrency as the future of money.

Is Crypto the Next Reserve Currency? Whats interesting about all the past reserve currency systems is the transition period. Each system experienced a period where the new reserve currency emerged into dominance. For most countries, this build-up period lased between 20 to 40-years. Considering that leading economists are saying it could be the end of the financial system, what currency would replace the dollar if every currency becomes worthless in the next crisis? The only economic system that would survive, such as an event, is cryptocurrency. Its also interesting to note that crypto has only been around for little more than a decade. Its also the only asset class thats emerged to challenge the current financial system. Therefore, if we go on history, we could say that crypto is ideally positioned to become the worlds next reserve currency. Governments and Cryptocurrency The only snag with crypto becoming the next reserve currency is its decentralized nature. Banks and governments cant control Bitcoin, as the Blockchain is a self-evolving entity controlled by the end-user. Therefore, there is no way governments can manipulate the currency or use it to create credit. Its for this reason that many governments around the world refuse to recognize Bitcoin and crypto as a legitimate currency. Instead, these governments post Bitcoin and crypto as the money of choice for criminals and drug dealers. However, the reality is that the preferred currency of choice for drug dealers, money launderers, and criminals is the U.S. dollar. We think that its unlikely that governments and central banks will allocate Bitcoin or any crypto they cant control, as a reserve currency in the future. Without reserve status, crypto will never achieve mass adoption in the industry and the broader economy. 7 However, that does not mean that crypto is out of the picture entirely. The Venezuelan government recently launched the Petro, a cryptocurrency tied to the nations oil reserves. However, this experiment is proving to be as much of a disaster as the Bolivar, the nations currency. Nothing is stopping the USA, U.K., or another reserve currency nation from issuing crypto as its new currency system. Back in the nineties, The Economist magazine released the elites plans to implement a new, oneworld currency called The Phoenix. Analysts argue that this could be the cryptocurrency of a new financial system.

Threats, Roadblocks, and Bottlenecks

Apart from the danger of big government stepping into squash crypto or warp it to their means, there are also other roadblocks and bottlenecks. These threats might stop the introduction of cryptocurrency as the future of money, and in some cases, might jeopardize the entire crypto ecosystem. The first threat against crypto comes in the form of quantum computing. Cryptocurrencies typically operate on military-grade encryption for the networks that control the various blockchains. Google recently released the first-ever quantum computer, and they state that four to five evolutions of the processor could lead to breaking 256-bit encryption. If this technology reaches the hands of hackers, and it inevitably will, then the security of the Blockchain is under severe threat. There would be noting stopping hackers from breaking into the Blockchain and destroying it. The next threat comes in the form of bitcoin mining. At the moment, there are millions of people mining Bitcoin. However, there is a finite amount of the cryptocurrency, limited to 21-million coins. What happens after miners finish mining the Blockchain? If they all turn off their machines at the same time, who will be responsible for maintaining and verifying all of the transactions on the network? 8 Another issue with crypto as the future of money comes in the form of a whale. At the moment, research shows that 20-percent of all BTC wallets hold over 80-percent of BTC. Therefore, there are players out there that can swing the markets by selling their portfolios. Our final concern for the future of cryptocurrency as money comes in the form of global utility. The most advanced cryptocurrency, Bitcoin, can still not process transactions as fast as the VISA network. According to research, Bitcoin can only process seven transactions per second, whereas Visa does hundreds of thousands of transactions. Therefore, if we were to move global trade to a blockchain, it would slow things down tremendously. Imagine waiting weeks for your credit card transactions to go through.

Wrapping Up Embrace the Future Today

One thing is sure; the U.S. dollar system cannot last forever. While its mere speculation to guess at whats coming next to replace the dollar, the only contender so far is crypto. We dont think that it will be Bitcoin that emerges as the next global reserve currency. However, we do believe that governments will eventually transfer into this monetary system when the current financial system fails. Do everything you can now to familiarize yourself with the technology or get left behind in the next evolution of money.