For some, cryptocurrency is the medium of exchange for the future and for others a disaster waiting to happen. While its supporters think its redeemable qualities have the power to transform financial services, its detractors view it as just another investing fad. When it comes to cryptocurrency, the consensus is anything but clear.

The popularity of cryptocurrencies, especially Bitcoin, can be attributed to their perceived security and no-to-low transaction fees. There is no central authority and money can be sent anywhere in the world at any time. Conversely, it is still in its growth and development phase and has proven to be highly volatile. There are also questions about its scalability.

In recent weeks, concerns around volatility have risen to the surface. Bitcoin reached a high of $3,025 on June 11th before cooling dramatically to approximately $2,272 on July 12th.

Bitcoin is not the only blockchain-based technology to see big swings. Ethereum was trading over $400 in early June only to hit an inter-day low of $192 across major exchanges the following month. Many have tied Ethereum’s fall with that of Bitcoin, linking the success of one open blockchain system with that of the entire market. Ethereum features smart contracts and allows users to create digital tokens that can be used to represent virtual shares.

Despite volatility concerns, cryptocurrency can offer stability in times of economic uncertainty. In Venezuela, which has been gripped by hyperinflation and economic turmoil since late 2014, bitcoins have helped consumers desperately in need of goods.

The IMF predicts inflation in Venezuela will hit 1,600 percent this year amid political turbulence. Venezuelans can shop at government-run grocery stores (that are suffering from severe shortages) only on designated days of the week aligning with their national identity cards.

Some Venezuelans have turned to Bitcoin mining in order to meet their needs. Bitcoin miners make their computing power available to transactions. Miners who excel in efficiency can earn bitcoins. And Venezuelans abroad are mining bitcoins and sending them to friends and family back home.

Bitcoin owners and miners have some tough choices to make however. It appears the most popular cryptocurrency is splitting in two: Bitcoin and Bitcoin Cash. For the past couple of years, two factions of core developers, investors and entrepreneurs, have sparred over the direction of Bitcoin. Now, unable to reach a consensus, Bitcoin Cash is set to separate to a different blockchain.

The departing faction wants to change the rules of the Bitcoin network to speed up transactions. However, increasing the amount of data in each block goes against the traditionalist crowd’s desire. They think it would make it harder for individual users to partake and easier for a group to seize control of the network.

Every owner of Bitcoin will have the same amount of Bitcoin Cash to begin with. What comes of the other side of Bitcoin remains unclear. Will Bitcoin Cash take the ascendancy? Will it crash and burn? Will the division take down both blockchains?

But while questions abound over Bitcoin and cryptocurrencies in general, they have the potential to fundamentally restructure the global financial fabric. Central banks and governments would have less control under a system dominated by cryptocurrency, with the cyber money supply unable to be adjusted to meet monetary policy goals. After the 2008 financial crisis, low interest rates and quantitative easing provided a much-needed boost for the economy. But in a stateless and digital system, no one government, group, company or person would have such a deciding influence.

Further, cryptocurrency enables owners to bypass those charges and delays inherent in the banking world and especially internationally. But rather than resisting change, banks and other financial services companies are looking to harness the technology behind Bitcoin to their advantage.

Blockchain — the technology underlining Bitcoin — is looking to make its mark regardless of cryptocurrency’s ultimate fate. JPMorgan, for example, is developing a blockchain system, Quorum, atop of Ethereum. Quorum is slightly different than traditional blockchain platforms in that it looks to split public and private blockchains to provide traders with privacy and regulators with appropriate overview. Meanwhile, Deloitte and ConsenSys are partnering to create a digital bank.

Rather than feeling threatened by the new wave of technological innovation, financial services firms should embrace it and look to innovate. Regulation has yet to catch up with the new realities presented by blockchain, but it seems only a matter of time before new legislation will be drafted. In Delaware, the governor recently signed a supportive blockchain regulation bill into law.

While widespread consumer adoption of bitcoins may be some way off, it is proving especially useful for those needing fast international payment processing or for those seeking privacy in their purchases.

Cryptocurrency’s true disruptive power has yet to truly materialize. But when it does, it could transform the financial system and banks and governments alike must be prepared.



  1. Pingback: Viagra generico
  2. Pingback: Viagra for sale
  3. Pingback: Cialis 20 mg
  4. Pingback: buy viagra pills
  5. Pingback: vardenafil
  6. Pingback: cost of levitra
  7. Pingback: Generic for viagra
  8. Pingback: generic viagra
  9. Pingback: cheap viagra
  10. Pingback: viagra tablets
  11. Pingback: pharmacy uk
  12. Pingback: drugstore online
  13. Pingback: canada pharmacy
  14. Pingback: cialis 20 mg
  15. Pingback: cialis 20mg
  16. Pingback: canadian pharmacy
  17. Pingback: viagra prices
  18. Pingback:
  19. Pingback: hs;br
  20. Pingback: tureckie_serialy
  21. Pingback:
  22. Pingback: +1+
  23. Pingback: watch
  24. Pingback: ++++++
  25. Pingback: HD-720
  26. Pingback: 2020
  27. Pingback: Video
  28. Pingback:
  29. Pingback: гдз 2
  30. Pingback: гдз класс
  31. Pingback: levitra 20mg
  32. Pingback: amoxicillin price
  33. Pingback: albuterol inhaler
  34. Pingback: cbd
  35. Pingback: cbd vape
  36. Pingback: viagra 100mg
  37. Pingback: viagra for sale
  38. Pingback: chloroquine cost
  39. Pingback: generic viagra
  40. Pingback: viagra 100mg sale
  41. Pingback: viagra for sale
  42. Pingback:
  43. Pingback: Viagra 100 mg otc
  44. Pingback: Cialis 40mg price
  45. Pingback: cialis 20mg
  46. Pingback: order lasix 100mg
  47. Pingback: cardizem otc
  48. Pingback: catapres otc
  49. Pingback: ceclor 500 mg uk
  50. Pingback: order celebrex
  51. Pingback: celexa 10mg price
  52. Pingback: cipro pharmacy
  53. Pingback: real casino games
  54. Pingback: best casino online
  55. Pingback: slot games
  56. Pingback: slots online
  57. Pingback: best car insurance
  58. Pingback: cure car insurance
  59. Pingback: get a quick loan
  60. Pingback: cbd oil
  61. Pingback: vidalista sarms
  62. Pingback: assignments help
  63. Pingback: buying an essay
  64. Pingback: write my paper
  65. Pingback: pay to do homework
  66. Pingback: online essay help
  67. Pingback: buy cheap essays
  68. Pingback: clonidine pharmacy
  69. Pingback: clozaril australia
  70. Pingback: colchicine online
  71. Pingback: combivent coupon
  72. Pingback: cialis
  73. Pingback: order compazine
  74. Pingback: coumadin tablets
  75. Pingback: cozaar prices
  76. Pingback: crestor 5mg otc
  77. Pingback: phd no thesis
  78. Pingback: ddavp prices
  79. Pingback: depakote coupon
  80. Pingback: cheap diamox 250mg
  81. Pingback: differin price
  82. Pingback: diltiazem tablet
  83. Pingback: elavil 50mg usa
  84. Pingback: imdur for sale
  85. Pingback: imodium generic
  86. Pingback: viagra cost
  87. Pingback: imuran nz
  88. Pingback: cost of lamisil
  89. Pingback: lopressor purchase
  90. Pingback: cost of macrobid
  91. Pingback: cheap meclizine
  92. Pingback: order mestinon
  93. Pingback: internet pharmacy
  94. Pingback: Aggrenox caps
  95. Pingback: nortriptyline uk
  96. Pingback: viagra
  97. Pingback: prednisolone price
  98. Pingback: proscar cheap
  99. Pingback: protonix tablets
  100. Pingback: pyridium generic
  101. Pingback: how to buy revatio
  102. Pingback: robaxin medication
  103. Pingback: rogaine cost
  104. Pingback: spiriva 9mcg cost
  105. Pingback: buy thorazine
  106. Pingback: tricor prices
  107. Pingback: voltaren tablet
  108. Pingback: cheap zithromax
  109. Pingback: look at here now
  110. Pingback: order zocor
  111. Pingback: order zovirax
  112. Pingback: zyvox medication
  113. Pingback: leflunomide uk
  114. Pingback: donepezil purchase
  115. Pingback: dutasteride tablet
  116. Pingback: buspirone nz
  117. Pingback: warfarin for sale
  118. Pingback: desmopressin price
  119. Pingback: trazodone tablets
  120. Pingback: cialis 20mg online
  121. Pingback: phenytoin otc
  122. Pingback: amitriptyline cost
  123. Pingback: estradiol cost
  124. Pingback: qbckfvyj
  125. Pingback: tamsulosinmg nz
  126. Pingback: glipizide online
  127. Pingback: buy cialis
  128. Pingback: cheap amoxicillin
  129. Pingback: viagra or cialis
  130. Pingback: terbinafine coupon
  131. Pingback: doxycycline mrsa
  132. Pingback: priligy us
  133. Pingback:
  134. Pingback: propecia age
  135. Pingback: neurontin tablets
  136. Pingback: no prescription
  137. Pingback: cialis 10mg india
  138. Pingback: cialis 20mg uk
  139. Pingback: Extra Super Avana
  140. Pingback: cialis on line
  141. Pingback: cialis prices nz
  142. Pingback: can viagra help pe
  143. Pingback: fake account lovoo
  144. Pingback: cialis or viagra ?
  145. Pingback: Valtrex
  146. Pingback:
  147. Pingback: flagyl use
  148. Pingback: flagyl use
  149. Pingback:
  150. Pingback: price of viagra
  151. Pingback: atorvastatin 40mg
  152. Pingback: omeprazole dangers
  153. Pingback: otc viagra
  154. Pingback: viagra canada
  155. Pingback: free viagra
  156. Pingback: buy cialis viagra
  157. Pingback: 1

Comments are closed.