Everyday we read something new about the cryptocurrency coming in and changing some real world problem. And then we see how it collapses and the founders run away by taking the precious money of investors. We continue to HODL and hope for new tech to change our everyday problem. But we always think of things through the solutions point of view but not through the gaps that could lead to different problems.
I thought I should be thinking from the gap position and see things differently. So here I am listing out some of the reasons why we still need the fiat currency in the world.
Take these 5 reasons as a difference of opinion and not something set-stone argument.
Blackout
Corona pandemic has given us an idea of how world is going to be if we are disconnected from the system that holds us together. We have noticed how cash and fiat system has been limiting us. So similarly imagine if tomorrow if any country or entire world faces some form of electricity blackout or war blackouts for duration like 6 month or so. If some countries are capable of releasing bioweapon through airport traffic, what stops that country from turning world into blackout of some sort? How do we continue to survive in such scenarios without currency? This is one reason why 100% switch to the cryptocurrency or digital currency does not make sense.
Scams
Almost every business sector has scams and the people who scam the society. Crypto is another place where this will happen and it is already happening with the ICOs and the various crypto groups who start as decentralized groups but later leadership comes out of it and scams the investors. Heard of Ruja iganatova? Yeah scam like onecoin can affect nations if they decide to go with any decentralized coins and some groups control the fate of that region.
Centralized vs Decentralized
People on internet hate anything centralized. And there are valid reasons for the same. When things go centralized then bias comes in. When this are centralized there is more chance of manipulation. But have we achieved anything decentralized at all? None of the social networks work decentralized and succeeded. Diaspora, GNU Social, all failed to catch the attention of mass. Current decentralized blockchain and marketplace too are being controlled by some groups, foundations, companies etc. Have you achieved a single coin that is not being manipulated by someone? This makes me think being blind towards something often gives us assurance that it is safe but does decentralized truly is? or is it just bandage to the centralized systems loopholes?
Singular Governance
More we think of cryptocurrency replacing the fiat. The more boundaries are likely to fade. And this means the cryptocurrency in the hands of the strong groups like mafia, rich nations, rich people, and cybersecurity hacking groups are likely to control the fate of the world. Strong religions will push the dominance over the low numbered religions. Food, religion, social rules and geographical borders will be controlled by people who have power. More singular governance means more poverty and more problems with random dictatorship within system despite lack of dictatorship at the top. People living in 1st world will assume 3rd world scenarios and will pass the judgements as they see fit. Imagine we end up under governance of same nation who spread corona all over the world. Do you feel safe around those people in power? I don't. Does crypto creating this scenario a good future for the world?
Security
Nobody wants to talk about it. Nobody admits it that crypto is far from secure. You may find blockchain tight as jacket but people have lost the funds through a lot of loopholes. Security is always going to be a concern. Imagine you turn 60 and not able to handle digital devices. How would you handle security for such devices and what protects your identity if there is a gap between your knowledge of secure usage and the practices used to find flaw in users usage? How does security usages are addressed by people who are into crypto.
Don't get me wrong. I love crypto. I continue to HODL. I continue to write about it. I continue to use it.
I can't however imagine governments getting rid of fiat currency, cash, gold and rely 100% on cryptocurrency.
That wont' be good for any nation, especially 2nd and 3rd world nations.
Crypto should be partially in control of this world. Not completely.
I guess things will stay safe that way.
