Expert Insights on the Future of Cryptocurrency

  1. Technical Insights on Blockchain & Crypto
  2. Practical Applications of Cryptocurrency in the Future
  3. Will the Philosophy of Blockchain Remain?

Part I. Technical Insights on Blockchain and Crypto

1. Devin Canterberry, CTO of Blockmason

  • The current cryptocurrency industry is skewed towards scammers and speculative investors out to make a quick buck instead of innovators who want to build sustainable businesses.
  • Sooner or later, the “currency” aspect of cryptocurrency will run its course, to be replaced by token contracts that will represent virtual assets.
  • It’s extremely easy to publish your own cryptocurrency with some simple copy/paste code and less than $1 in fees.
  • Market demand is almost completely driven by speculation — the overwhelming majority of coins act only as arbitrary stores of value, as opposed to demand driven by utility (e.g., the oil market is significantly driven by both utility and speculation, resulting in generally more stability).
  • There are a plethora of cryptocurrency exchanges, each a prime target for hackers to exploit. Cryptocurrency, as a paradigm, lacks fundamental properties of a fully functioning currency system:
  • Inherent value. Few, if any, cryptocurrencies on the market, in and of themselves, have value. This property is also true for fiat, making most cryptocurrency tokens, in fact, fiat. The system for exchange is decentralized, and minting can be predictable, but ultimately, the control and interest in each coin is retained by a centralized authority: the creator.
  • Ubiquity. No cryptocurrency has yet achieved ubiquity in the real world as a means of conducting any financial transaction within some jurisdiction, making it of limited utility. Coins are a tradeable asset rather than a unit of currency, much like any other commodity like oil or gold. Cryptocurrency today, as a whole, is used as a short-term investment vehicle and for moving money around with varying degrees of complexity. Individual coins, if claiming to provide any utility at all, do so, in practice, through a single vendor who fulfills/provides this value through a product or service, rather than through the coin itself. In this way, coins are much akin to gift cards, or at the risk of being too on the nose, retro arcade tokens.

2. Omid Malekan, Author of The Story of the Blockchain: A Beginner’s Guide to the Technology Nobody Understands

  • Adoption is slow, but in time, virtually all of finance will be using the blockchain infrastructure due to its benefits.
  • Blockchain tech will allow decentralized and open-source platforms to topple tech giants like Facebook, Uber, etc. and distribute the risks/rewards equally around the ecosystem.

3. Eric Kovalak, CEO of Vellum Capital

  • The future of crypto will start in places where it can add the most value, like developing nations and third world countries with economic crises that make cryptocurrencies more practical than fiat currencies.
  • That said, the cryptocurrency industry is still at an early stage and will need more innovation, not just disruption, to progress to mass adoption.

4. Jed Grant, CEO of Peer Mountain

  • The adoption of cryptocurrency would increase exponentially if there were more improvements on user experience and accessibility, not just on infrastructure and performance.
  • Well-designed ecosystems with incentive mechanisms that reward proper behavior will win out in the long run.

Part II. Practical Applications of Cryptocurrency in the Future

5. Avneet Singh, CTO of Dock

  • It’s only a matter of time before cryptocurrencies can empower people in underprivileged parts of the world to gain control of their lives through decentralization.

6. Shidan Gouran, CEO & President of Global Blockchain Technologies

  • A protocol that enables interchain transactions will make expand use cases for cryptocurrency and form a borderless global banking system for cryptocurrencies.

7. Yael Tamar: Founder of Top of Blockchain

  • The future of crypto lies in consolidation and stabilization to make it more practical for use in commerce.

8. Dmytro Budorin: CEO of Hacken

  • Blockchain has a significant potential to impact many industries including cybersecurity, finance, investing, commerce, and even the election process.
  • Transparency. In one sentence, Blockchain is a ledger of information (or transactions) that is very hard to tamper with. So, the first impact that blockchain will have on society is increasing transparency in various processes, be that logistics (showcasing the history of the product from the source to its end destination), charity work (who has been spending money and how exactly the money was spent), or fair elections process, etc.
  • Cybersecurity. Today, everything is “online”. We completely rely on safe access to information via the web. Blockchain technology, by design, is significantly more reliable than conventional data ledgers. One of the reasons why bitcoin became so popular is precisely because it is so difficult to hack and steal someone’s money. Another benefit to the society would be safe and fair election process that run on blockchain protocols.
  • Financial freedom. At the moment, roughly 2 billion people don’t have a bank account. Blockchain technology (via cryptocurrencies) can provide safe access to financial services, which will lead to financial freedom and increase standards of living for the people in the developing economies.

Part III. Will the Philosophy of Blockchain Remain?

9. Timofey Fortunatov: Head of PR at Tugush Blockchain Capital

  • There might be a possibility that the philosophy underlying cryptocurrencies and blockchain may be altered in favor of governments and big corporations.

Wrapping Up

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