Author: @madridbg, through Power Point 2010, using public domain images. Gerd Altmann
Greetings and welcome dear readers of this prestigious platform, we continue to address the blockchain world and its functionality at an economic level, which we will associate with its usefulness in a changing society like ours.
Therefore, the idea of writing this publication is associated with a very specific question or query: what are cryptocurrencies for, and to answer this question it is necessary to remember that in previous publications we have mentioned that education is the real problem of the cryptographic world, beyond the volatility that is present and the degree of uncertainty and distrust that users have been assuming.
So it is necessary to understand that cryptocurrencies are not merely a speculative tool, an idea that has been sold to us over time since it is assumed the possibility of making easy money through them, which has led society in general to assume a misconception of the true functioning of these digital assets.
In this sense, it is imperative that users and even more new investors who are entering this style or type of economy, understand that at first cryptocurrencies was a projection in the face of a decadent and centralized economy that was manipulated and managed by a small group of wealthy investors, which generated some discomfort in some people, managing to develop a type of decentralized, private and unthinkable money, then different variables have been appearing that have been able to create a real ecosystem of opportunities, but also of dangers rooted to the investments that can be made in this economic model.
Therefore, and based on the above, we will make a conceptual approach about the true usefulness of cryptoassets and that go beyond a speculative term and different illegal actions that are being associated with this type of economy, among these utilities stand out:
1. Cryptocurrencies as a means of payment: Based on the decentralization, immutability and scalability of data, terms associated with the blockchain, cryptocurrencies allow the fluid exchange of assets, hence through them, we have the ability to pay our bills or send money from one place to another without intermediaries, so that there are no banks and the bureaucracy associated with the traditional economy is left aside, Therefore, it is assumed as an attractive process for investors, as a secure and private free exchange, without leaving aside the process or viable mechanism that allows the coexistence between traditional fiat money and digital assets, giving a tangible utility to this type of market associated with cryptocurrencies.
2. Cryptocurrencies as financial tools for society, for no one is a secret that in a society that evolves by leaps and bounds, poverty is one of the real problems for humanity, so that there are still people who are outside the traditional banking system, so that the fluid movement and exchange of cryptoassets, coupled with the large number of capitalization of these, allows this type of market to serve as a bridge to boost the economic development of nations, as El Salvador has been able to glimpse, which has bet on the potential of digital markets and cryptocurrencies in general to move forward with a country model that goes in line with the technological evolution we are living.
3. Cryptocurrencies as a savings and loans system, undoubtedly the profitability that decentralized finances leave us, allow us to grow economically at a higher speed, hence through cryptocurrencies and through DEFI in general, users have the ability to take on loans that they can cancel with different cryptoassets, so that the growth or entrepreneurship of users who make life in this type of economy can be boosted.
4. The passive returns behind the world of cryptocurrencies, in addition to savings and loans, exchanges based on a decentralized economy allow the development of new economic processes such as staking, which facilitates the generation of returns or yields throughout our investment process, since we can take cryptos from our investment portfolio and add them to a liquidity pool and thus gain greater voting power by participating in a network or protocol, which will generate returns or rewards in a passive manner.
Undoubtedly there are several utilities of cryptocurrencies to this we can add the generalized tokenization, from the NFT games, establish secure digital identities, as well as develop a governance system within the community that generates greater security and comfort for users, which represent processes that allow us to think about the true utility of cryptocurrencies and the enormous potential that they are presenting, so that from the learned we can glimpse that cryptocurrencies go beyond a purely speculative process.
OF INTEREST
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating to @indiaunited. We share 100 % of the curation rewards with the delegators.
Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.
Read our latest announcement post to get more information.
Please contribute to the community by upvoting this comment and posts made by @indiaunited.