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The best defense of cryptocurrencies

INDEX

  1. My first contacts with cryptocurrencies
  2. The greatest virtue of cryptocurrencies
  3. Cryptocurrencies are the best private money
  4. Conclusion

1. My first contacts with cryptocurrencies

Sometimes I find it hard to believe that it has been so long since I first heard about cryptocurrencies. My initial contact was somewhat brief: in the middle of 2011 (during my first fever with the “pay per click” platforms). The offer to earn bitcoins by watching advertising led me to read a little about this new virtual currency and to check its price in the market. If my memory serves me right, at that time 1 BTC was equal to 11 US dollars. Interestingly, I dismissed it. It was not what I was looking for, or rather, I did not know what was in front of me.

Two years later the coin would come to my attention again. Max Keyser spoke highly of Bitcoin on his TV show, which I watched every week; I started reading news related to cryptocurrency. By that date, its price had reached $ 1,000 and I had the feeling that I had lost the opportunity of my life. However, that did not discourage me, it motivated me to investigate further. I wondered if I could still get on that train; I wanted an answer.

From that moment I did not lose interest. My readings increased as time went on, and eventually, I stopped caring how much its price dropped in the short term or when it would start to rise. Because the more I learned about the benefits of the protocol proposed by Satoshi Nakamoto, the more I became convinced that, no matter what happened in its early stage, it would change the world.

2. The greatest virtue of cryptocurrencies

It is clear that what drove my initial fever was an immense curiosity and the search for better opportunities; A currency that could be freely exchanged for dollars was very attractive in my country of origin (Venezuela) where exchange control made it difficult to obtain them in the legal market. Later I was also invaded by a fascination for what was behind; free and accessible money for all.

Despite what its detractors may say, I am not afraid to affirm that cryptocurrencies are much more than electronic money or computer networks. They are an ideal brought to reality, the answer to pre-existing needs. But, above all, they are a disruptive means to achieve inclusive well-being and promote necessary changes in the global economic system.

Although many technical factors add up to make cryptocurrencies what they are, I am not wrong in stating that their main pillar is their censorship-resistant internet protocols (what some call “decentralization”). That is, the ability to provide security without the need to rely on central decision-making authority.

3. Cryptocurrencies are the best private money

The fact that no government can impose its monetary policy on decentralized cryptocurrencies, in addition to the difficulties they have in imposing restrictions on their use, gives them a great insurmountable advantage to this type of asset and makes them far superior to any other. form of electronic money that can be issued by a public or private institution. If we propose a private money system, but without the characteristic resistance to censorship that cryptocurrencies offer us, we could not expect the same results.

As many will know, the distrust of cryptocurrency enthusiasts in institutions such as the State and corporations is very well-founded, since if these are in charge of its management, it would be in their hands the possibility of resorting to the modification or definitive deletion of the most precious characteristics that a monetary system can have, being able to appeal for the manipulation of the markets, the “stimulus” of the economies and the expansive issuance to finance its expenses; something that ultimately would bring excessive inflation and introduce into the crypto world boom and bust economic cycles similar to those suffered by most economies worldwide.

But that is not the reality in the case of cryptocurrencies. These remain what they are because no one can unilaterally impose the modifications they want unilaterally on a whim. And although a cartel of institutions could co-opt any of them, its open-source protocols would make the survival of a decentralized variant viable through a fork of its blockchain (another cryptocurrency with the same characteristics).

4. Conclusion

The best defense that decentralized cryptocurrencies have had during all these years is that they are “creatures of the market” that are not tied to the value of other assets, whose conservation depends on their participants (users, miners, and investors), who have as their main interest to protect yourself from undesirable changes.

So it is, and so it will continue to be. In the future, many more will join together seeking shelter under what we already consider our umbrella in the coming torrential rain, and boy is it necessary for them to understand the importance of decentralization.

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