Why I Believe Cryptocurrency Will Change the World

In 2015, my dad started talking about cryptocurrency. He brought it up in conversation once or twice, then didn’t mention it again for a few years.

A little fact about my dad: he was on the team that created the hypertext transfer protocol (HTTP). He worked for IBM for 30 years and was at the forefront of the internet revolution. He used to say that everyone told him the internet was a phase, that it would die off in time. My dad would tell others, with complete certainty, that the internet would change the world.

Fast forward to 2018, and my dad started telling me that cryptocurrency would change the world. It felt like déjà vu. Here he was again, identifying a transformative technology before the rest of us had a chance to fully grasp its implications. Naturally, I started paying closer attention.

I’ll be honest—at first, cryptocurrency sounded like a buzzword-filled gimmick. Digital money? Blockchain? Mining? The vocabulary alone made my head spin. But as my dad explained it more, and as I began to research the technology myself, I started to see parallels between the early days of the internet and the nascent world of crypto. Much like the internet in its infancy, cryptocurrency was messy, misunderstood, full of people who were spreading misinformation, and surrounded by skepticism.

Yet it still held the potential to revolutionize industries, empower individuals, and reshape the global economy.

The Core of Cryptocurrency: Decentralization

At the heart of cryptocurrency is the concept of decentralization. Unlike traditional currencies or banking systems, which rely on central authorities like governments and financial institutions, cryptocurrencies operate on a decentralized network of computers. This might sound abstract, but it’s a game-changer for several reasons.

Decentralization means no single entity has full control. It’s a system built on trustless transactions, where users don’t have to rely on a bank or intermediary to validate their money transfers. Instead, the blockchain—a digital ledger that records every transaction—does the work. This has profound implications, particularly for people in countries where trust in banks or governments is low (which is a lot of the world).

My dad explained it this way: imagine you’re sending money to a friend overseas. With traditional banking, you might face delays, high fees, and currency conversion headaches. With cryptocurrency, the transaction is peer-to-peer, direct, and often completed within minutes. It’s efficient, transparent, and accessible. It is also protected by those who are “Blockchain Validators”, who are coding protections around each transaction so an outside source cannot access it.

Empowering the Unbanked

One of the most exciting possibilities of cryptocurrency is its potential to empower the unbanked—the 1.4 billion people worldwide who don’t have access to traditional banking services. In many developing countries, opening a bank account isn’t just inconvenient; it’s impossible due to lack of infrastructure, government instability, or prohibitive costs.

Cryptocurrency provides a way for these individuals to participate in the global economy. All they need is a smartphone and internet access. Through digital wallets, they can store, send, and receive money without relying on a bank. This opens up opportunities for entrepreneurship, saving, and investing that were previously out of reach. For 1.4 BILLION people.

I’ve read countless stories of people in rural areas using cryptocurrency to pay for goods, start businesses, or even receive remittances from family members abroad. It’s a true lifeline for communities that have long been excluded from traditional financial systems.

Transparency and Trust

In today’s world, trust in institutions is at an all-time low. Scandals, corruption, and economic crises have eroded confidence in governments and financial systems. Cryptocurrency offers a solution to this growing problem.

Blockchain technology, the backbone of cryptocurrency, is inherently transparent. Every transaction is recorded on a public ledger, visible to anyone with internet access. This level of transparency makes it incredibly difficult to manipulate or falsify data. It’s a stark contrast to traditional financial systems, where opaque practices and hidden fees are the norm.

Imagine a world where charitable donations can be traced to ensure they reach their intended recipients, or where election results are recorded on a blockchain to eliminate doubts about their legitimacy. These are just a few of the ways this technology could rebuild trust in our institutions.

Breaking Down Borders

Another reason I believe cryptocurrency will change the world is its borderless nature. Traditional currencies are tied to specific countries, and exchanging them often involves steep fees and bureaucratic hurdles. Cryptocurrency, on the other hand, knows no borders. It’s a truly global currency.

This has huge implications for international trade, remittances, and even travel. For example, freelancers and remote workers can be paid in cryptocurrency without worrying about exchange rates or delays. Similarly, migrant workers can send money home to their families without losing a significant portion of it to fees.

The Rise of Smart Contracts

Beyond its use as a currency, blockchain technology enables something called smart contracts. These are self-executing agreements where the terms are written directly into code. Once the conditions of the contract are met, it automatically executes.

Smart contracts have the potential to disrupt industries like real estate, law, and insurance. Imagine buying a house without needing a lawyer or escrow service. The smart contract would handle everything, from verifying the property’s ownership to transferring funds. It’s faster, cheaper, and much more secure.

Challenges and Criticisms

Of course, no discussion about cryptocurrency would be complete without acknowledging its challenges. Volatility is a major concern—prices can swing wildly, making it difficult for people to use crypto as a stable form of payment. There’s also the issue of energy consumption, particularly with cryptocurrencies like Bitcoin that rely on energy-intensive mining processes. There are whole facilities built next to waterfalls so they can generate enough electricity to keep up!

Regulation is another hot topic. Governments around the world are grappling with how to classify and control cryptocurrency. While regulation could bring legitimacy and stability to the market, it also risks stifling innovation.

Despite these challenges, I’m optimistic. Just as the internet evolved from a chaotic, unregulated space to the indispensable tool it is today, I believe cryptocurrency will overcome its growing pains and reach its full potential.

Looking back, I realize my dad’s insights have always been ahead of their time. When he spoke about the internet’s potential in the 1990s, few could envision the transformative impact it would have on our lives. Today, his predictions about cryptocurrency feel equally prescient.

Cryptocurrency isn’t just about money. It’s about creating a more inclusive, transparent, and efficient global economy. It’s about empowering individuals and breaking down barriers. It’s about reimagining the way we interact with technology and each other.

I don’t claim to have all the answers, but I’m excited to see where this journey takes us. As my dad likes to say, “We’re just at the beginning.” And if there’s one thing I’ve learned from him, it’s that the future is always closer than we think.

If you’re interested in learning more how to get involved in crypto besides just buying coins, check out this blog post.