One of the ideas students can’t wrap their heads around when it comes to crypto currency as a medium of exchange is that they, “Can’t hold it in their hands.”
To understand a bit more about where we are going let’s take a quick look back on the evolution of “money.” Throughout history, as long as someone had something of value, we have found ways to trade and pay for it.
Beginning with the Ancient Egyptians, who exchanged spices, silk, weapons, and livestock, to the issuance of “greenbacks” in 1861 by the U.S Government, to the emergence of the internet and e-commerce in the late 1990’s and early 2000’s, our method of exchange has progressively become easier, and less of a burden, to exchange.
Today we use debit cards, credit cards and payment apps like Venmo, PayPal and Apple Pay (which are linked to our bank accounts) and therefore, cash rarely needs to change hands. These digital transactions have helped give rise to the use of crypto currency.
Digital Currency – We are here now.
Bitcoin is the first global, decentralized currency that allows one person to send money to another without involving a third party. In other words, it is a digital asset designed to work as a medium of exchange that uses cryptography to control its creation and management, rather than relying on central authorities. You, the user, not a third party, control what you pay for, how you pay for the product or service, and the value you agree it is worth.
At the time of this writing, there are over 16,000 crypto currencies vying for acceptance in this space, with a market cap of just over $2 trillion dollars. With the falling popularity of paper currency and inflation at its highest level in over 40 years, we believe that crypto currency solves many of the issues in today’s economy. Due to the finite supply of Bitcoin, it should continue to increase in value over time versus fiat currencies, which lose purchasing power as more and more is printed.
We’ve already been engaged in electronic transactions for over 20 years. It stands to reason that this shift in technology, toward a truly digital payment system, will continue to usher in the use of crypto currency. Time will tell.