Cryptocurrencies seem just like the world’s money, separated but connected by exchanges. Imagine if there was one cryptocurrency, one that everyone uses. That would make cryptocurrencies seem way easier. Right now, most countries has it’s own currency, but they exchange it to make trades. Cryptocurrencies are really similar in this way. Cryptocurrencies are so vast that there are probably tens of thousands of different ones, from Bitcoin to Dogecoin to Ethereum. If these cryptocurrencies continue to become more and more vast, there would be extreme difficulty in purchasing things with a less known cryptocurrency. Furthermore, not everyone wants to exchange their crypto and if you’re a shop owner accepting nearly all the cryptos, you’ll have a lot of different coins to work with! This is how the worldwide currency works. If you had a store in America, you wouldn’t want Australian dollars or Canadian dollars (unless you’re a coin collector, of course!). This makes it mandatory to exchange it, bu what if in the rare case, no one wants to exchange it? These are the issues non-unified currencies proposes.
What would be the most likely cryptocurrency to be unified to?
Right now, if everyone were to use one cryptocurrency, Bitcoin would probably be the best choice as it is the most popular crypto, and is well designed. But again, unified cryptocurrencies probably wouldn’t ever exist.
Why would we want or need an unified cryptocurrency?
If countries were to trade things using only cryptocurrencies, what would they use? For example, if the Australian government want to purchase something from the United States using Ethereum, they might decline it because they only use Bitcoin.
Currently., this is another factor why cryptocurrencies aren’t commonly used in stores, because if you hang up a sign with ‘All cryptocurrencies accepted’, there probably be one person trying to buy something for ShoeCoin (not actually a real thing). Then, if you can’t download the ShoeCoin wallet and accept it, you won’t be accepting all cryptocurrencies.
Now, back to the countries. Australia wants to buy something from the US using Ethereum, but the US uses Bitcoin, What will happen now? One party would have to exchange to come to a deal. Typically, deals around the world are done using US dollars, which makes US dollars the most likely currency to be called ‘unified’, if the world were to agree upon one currency.
Will there ever be a unified cryptocurrency?
Probably not. But currently, the most popular currency would be the most accepted ones. So, sometime in the future, if you’re buying the groceries with crypto, bring the most popular one, not a random one (unless they accept it) to avoid coming home without groceries!
