Day 223 - Crytpocurrency and The Rise of Bitcoin

The crytpocurrency market and the rise of Bitcoin has come as a result of a growing distrust and declining confidence in the markets of fiat currency as a form of value transfer. This was originally the inspiration behind its creation as well as the practical need for a more efficient means for transferring value between and across markets with ease that one would expect in our day in age considering all of the other technological advances and breakthroughs we have made as a whole.

The rise of crytpocurrencies and the problems it will solve have been likened to how the internet solved the problem of information transfer. Now as a result of innovation with the internet protocol space companies like Google and Yahoo have streamlined information transfer through connecting single words to an entire database of information regarding those words and have sorted the results according to efficacy and relevance. The same can be done to currency where the transfer of value through currency can be tranaferred anywhere and to anybody in the entire world in seconds wherein sending payment for something becomes as easy and simple as sending an email - all you need is an address and that person can have instant access to that money. The problem right now within the crytpocurrency space is liquidity which is essentially once you send that payment to someone how easy and how fast can they turn around and use that for something that they physically need. This is also an issue of existing infrastructures and values that everyday consumers hold onto when it comes to " what is payment - what is money - how do I pay - where is the money".

For the past 10 years the transfers of money have been more and more amalgamated with the technologies existent within this world. For example the push for people to start using their phones through things like android pay and apple payment to pay for goods and services have been in the works for years. This is pretty much the starting point for people to start thinking about payment from a purely digital perspective wherein no longer do you need physical cash or even a physical debit card to make payment - but you need a digital bank account accompanied with a digital wallet that can be transferred to a digital ledger (a merchants bank account) in order to exchange the physical value that is sought. This is essentially the process of evolution with regards to the transfer of value wherein the process is equal to the capabilites of our technology.

The reason the crytpocurrency market space has been slow to develop is because of existing outdated infrastructures with regards to money. This is also dependent on the users willingness and ability to comprehend and use something entirely new and different from what they've always known. Thus the infrastructure needed to make the transition into a more digital space with regards to money transfer has been slow to develop not only because of the cost to transition for an entire ledger but also because most people would not understand how it works what you did and why you did it in the first place - but most of all human stubbornness does not like change especially when it comes to the processes for which they distribute their lifeline - and especially whenever they do not understand those processes.