William Belk, founder and developer of Token Spread, shared his opinion on what issues the crypto-currency phenomenon causes and what consequences the block-revolution brings.
From all sides, only one can hear: crypto-crypto-crypto-crypto. It’s a creeping revolution, and it creeps so fast that you can not keep track.
This process has two main directions:
- as a technology – there is an arms race to create a blockade of a new generation.
- Crypto-currencies as a transformer of existing financial and state organizations and corresponding relations.
Blockchain as technology is a good thing and is largely oriented to the community and consumers, and its implementation will serve for greater transparency and cooperation in various world markets.
But the crypto-currency as the engine of transformation represents the personification of chaos, which opposes order. Autonomy within the community, privacy and anonymity are fighting here with transparency, compliance with rules and downward order.
In the United States, this process of tug-of-war was observed from the 19th century:
- States against the federal government.
- An autonomous individual against government restrictions.
- International cooperation and compliance with financial agreements against state sovereignty and personal autonomy (see UN and EU).
In some other countries, this issue is even more acute.
Today, changes in the financial sector are limited by a variety of factors: real estate, trade, seaports, transparency and the influence of the international banking system.
1 million dollars weighs 10 kg and occupies a volume of 0.01282 m³, gold is much heavier and denser, vintage cars are much heavier, although not as dense, art is large and fragile, and real estate, as the name implies, does not move at all. At the same time sending an international transfer of 50 thousand dollars – a non-trivial task. That is, we see that the movement of values in the traditional system is very limited.
Chaos vs. order
Crypto currency is a global phenomenon, and they signify the separation of value from world currencies and. That is, self-organizing and understanding in the technologies of the community can autonomously choose the conditions and methods of financial exchange. Moreover, they develop the most attractive properties of crypto currency and make bold statements about how money should be arranged and exchanged and how anonymous this process should be.
For the first time in history, financial freedom appears, not limited to the interests of states, governments and international associations – and in the next 10 years we will observe the development of this story.
It seems that there is only one left in the hands of the state, but an important part of the design is Internet access, and in countries such as China, North Korea or Saudi Arabia it is quite simple to control it, while in the United Kingdom, the United States or Australia, , is considered one of the basic human rights.
Regulation against the chaos of innovation
Regulators do not slumber. Recently, a conference devoted to bitcoin was held in Miami, and on the panel devoted to regulation, the question was asked about the real need to observe financial restrictions when moving crypto currencies – it was understood that state actors are too slow and lag behind the changes taking place in the world.
To this, one of the lawyers on the scene simply said: “You know, in some countries financial violations are punishable by the death penalty”.
The audience, as expected, gasped. In the course of another discussion, the interlocutors agreed that in the near future we may well see fines of half a billion dollars.
One of the most fascinating plots of the next 10 years should be the struggle of the crypto-currency community with centralized government forces: the first will develop new solutions in the field of autonomy and anonymity, while the latter will struggle to control and regulate decentralized systems.
is just a touchstone. Bitcoin, broadcast, Dash, Monero, Zcash are all real-time experiments on which the community learns to use the achievements of cryptography.
It can be confidently asserted that:
- Blocking is a story about innovation in distributed systems;
- The main story related to crypto-currencies is a story about money, about who owns them, how they move, who knows about it, and about the effectiveness of their movement.
The dilemma of crypto-currencies raises many fundamental questions:
- Who has the right to know about our income and transactions?
- Should we have the right to independently organize and choose the preferred system of financial exchange?
- What will happen to the tax-based taxation in the era of global financial anonymity?
- Should citizens strive for financial transparency, if governments are ineffective, tend to over-regulate and corrupt and do not keep up with innovation?
- state on violence often manifests itself in the form of financial sanctions – what will happen if this opportunity disappears?
And these are just a few questions that arise if you think about the phenomenon of crypto-currencies – the real socio-political consequences of this revolution are so far difficult to imagine.
The future of money deserves the closest attention, and while the blockade symbolizes innovations in distributed systems, crypto-currencies are a story of the struggle between order and chaos, and this struggle will greatly change the social relations and the face of states.