Today many top experts and opinion leaders believe that the crypto world is the future of digital money, and that blockchain, as a decentralised technology, brings huge challenges to the global economy. It is redefining the money and ownership processes, and redesigning the role of intermediaries.
Crypto industry and blockchain technology promise to drastically change established markets. However, the infrastructure of crypto market is still very immature and need to be adapted to mass market to revolutionise the world. Let’s consider the benefits and threats of the above mentioned
• Low transaction fees, fast worldwide transfers, financial transparency, high level of security, and no borders — are the benefits of crypto and blockchain world.
• The main benefit will be disintermediation; eliminating middlemen, and bringing permissionless financial infrastructure to every corner of the earth.
• It’s an opportunity for everyone to participate democratising wealth and access to resources.
• Blockchain and distributed ledger technology promise that individuals will take control of their personal information.
• Companies can become less reliant on centralised systems that are prone to concentrated cyber attacks.
• Without government support, some of the blockchain technology infrastructures and applications can be blocked from happening.
• Anonymous and decentralised applications might be misused by terrorists, black markets and dark web.
• ICO project scams bring disastrous efforts to some people supporting blockchain developments.
• High volatility makes cryptocurrencies a poor choice for regular commerce and business transactions
• The slow processing times and significant use of resources for mining, are hampering widespread adoption.
• The issues with hackers breaking into exchanges make the crypto-economy an uncertain place for individuals or organizations.
Peer-to-peer transactions and the challenge of tracking the ownership of money will be both a threat and a benefit, arising from the greater potential for money-laundering but countered by the opportunities available from anonymity and AI-powered robo-trading.
Kate Goldfinch, blockchain evangelist and editor of The Fintech Times