The cryptocurrency world is a one-of-a-kind financial wonderland in which timing is everything and nothing is certain. A billionaire tweets out a meme, and you’re pushed toward one margin or another the moment you believe you’ve got a handle on the market.
Users of rollercoasters and thrill-rides may enjoy the experience, but investors searching for a way out from under centralized currency and banking may desire for a less tumultuous future.
Unfortunately, the road ahead is not easy. Decentralized digital currencies like Bitcoin and Ethereum make perfect sense on paper. I still have a dollar’s worth of Bitcoin if the US government decides to declare my citizenship invalid and denounce me. However, every penny of fiat money I currently own in US markets, banks, retirement accounts, and other investments
In a genuinely decentralized monetary system, no single government or other cryptocurrency owner should be able to seize your funds. However, in most situations, it’s only the technology that prevents authorities from seizing cryptocurrencies. What if the technology against which you’re defending fails?
Today, with literal cryptography, we are certain that our cryptocurrency assets are safeguarded from intrusion, theft, and withholding. Because they’re encrypted, it shouldn’t be able to access our crypto holdings in the same way that the government can’t listen to our WhatsApp conversations.
In today’s world of ever-changing hacker vulnerabilities, the creation of a decentralized cryptocurrency with no single point of failure might be one way to protect against attacks.
With Bitcoin and similar huge cryptocurrencies based on decentralized (but well-controlled) blockchain technologies, there’s little worry that a government would gain enough technical superiority to steal assets. If, for example, China or the United States develops a quantum computer able to break binary encryption, the Bitcoin platform can draw support from the community in order to defend against these assaults.
Only 0.1 percent of the market is smaller than Bitcoin and Ethereum, according to 99.9 percent. There’s no difference between a real scam and a genuine cryptocurrency without encryption to safeguard what’s in your digital wallet.
If a certain cryptocurrency can’t defend itself againstIRS, FBI, DoD, China’s military department, and any other entity that could fund and build a quantum computer in the future, it might be gloomy for cryptocurrencies as a whole.
In a technological climate, a small number of Bitcoin-sized walled gardens would survive. Quantum computing is in its infancy, but those naysayers may not be keeping up with where we’re at with the technology.
By the year 2050, it doesn’t seem like much of a gamble to think that effective quantum cryptography systems will be fully-functional. It’ll be an issue for people who just want to keep bitcoin because it’s decentralized if governments can seize bitcoin more easily than seizing people’s money or ordering their fiat accounts frozen.
The difficulty is that, in theory, when only a few cryptocurrencies are accessible, whales attain even more power because they become “the house.” Elon Musk, for example, can shift entire cryptomarkets with a single tweet right now owing to his position and popularity among cryptocurrency enthusiasts.
Despite the fact that everything appears to be okay in the present market. There are hundreds of equally-as-genuine cryptocurrencies attempting to break into the next whale’s heart and social media feed for every DogeCoin riding the crest of Elon Musk’s emotions.
Perhaps you’ve heard about this before, but as one of the many people who have converted a few hundred dollars into Lambo money with nothing more than a few hundred bucks, a crypto trading app and a Reddit account, it may be worth repeating. The point is that the existing cryptocurrency market appears to provide so much choice that, whether you’re a guppy or a whale, there’s still plenty of cash to be made by all investors.
The upcoming arrival of quantum computers to government agencies, on the other hand, may rewrite the script. The IRS currently has over 90% of all seized funds in cryptocurrencies for 2020 and expects that percentage to rise in 2021-2022.
With its many benefits, it’s easy to see why numerous nations are moving towards a complete ban on public cryptocurrencies. Iran, for example, is in the midst of an all-out assault against crypto assets in order to protect itself from the devastation that will result should the country be subjected to cryptocurrency trade.
Given that certain countries’ leaders have already banned Instagram and Instagram Stories within their borders (obviously not in America), we can infer that nations including India, where a full prohibition on public cryptocurrencies is being considered, and China, where all cryptocurrency activities are presently prohibited
The strange machinations of quantum physics were what Einstein referred to when he created the phrase “spooky action at a distance.” But the idea is just as relevant to cryptocurrency. It’s tough to picture what the next five minutes will look like for most cryptocurrencies. The prospect of looking 30 years into the future of finance is daunting.
We simply don’t know what’s going to happen. Actors who are currently in control of the fiat market (such as the US government and Elon Musk) are unlikely to relinquish that position. Their intentions will determine whether they corner the cryptomarket or splinter it.
In the meantime, those who want a decentralized crypto future should urge their communities and development teams behind legitimate coins to start now.
You’re betting that the next 30 years of technological progress will be less dramatic than the last if you wait for IBM or Google to start selling quantum computers Now before getting ready for the coming encryption crisis. And, considering Bitcoin wasn’t created thirty years ago, it appears to be a risky bet.
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