A panel discussion at last year's World Economic Forum (Credit: AFP PHOTO / FABRICE COFFRINI)
This Tuesday, the 23rd of January will mark another World Economic Forum Annual Meeting. Professionals, leaders, and influencers from around the world will gather in Davos, Switzerland from the 23rd to the 26th to engage in a dialogue on a variety of issues. From current political structures and geopolitical issues to environmental concerns and beyond, The World Economic Forum is a place for leaders to discuss leadership challenges.
Interestingly enough, DecentraNet will be hosting their blockchain content series CryptoHQ at the same time. Which is perfect, considering the importance of addressing both the current state of the cryptomarket as well as its future. These are both worthy of discussion in an environment of open communication about issues that affect global communities, particularly when industry leaders are guiding the conversation.
Considering the impact that cryptocurrency will have on traditional industries and the financial market, it’s crucial that we have these kinds of discussions to ensure that the cryptomarket is easily and readily integrated into our current financial systems.
With the massive spike in Bitcoin and the ever-growing popularity of the blockchain community, it’s easy to get caught up in the hype of cryptocurrency and lose sight of the bigger picture.
The truth about cryptocurrency is that, while seeing the value of Bitcoin skyrocket is certainly appealing, what should really be intriguing industry leaders is the cultural shift that cryptocurrencies are leading the way for. More specifically, the way that cryptocurrencies appeal to both the average consumer and the investor who’s fatigued by traditional financial systems.
To be fair, the cryptomarket is certainly not without its flaws. Two of the easiest issues to cite being stability and safety. The SEC has already brought attention to the fact that investors have been swindled out of millions by fraudulent Initial Coin Offerings (ICOs). And you only have to look at volatile nature of some of these cryptocurrencies to realize why risk-averse investors are quick to dismiss cryptocurrency.
But these are exactly the reasons why industry leaders need to discuss and analyze the cryptomarket in its current state. These issues are opportunities for growth, and something this important deserves a platform where a global audience can discuss how to tackle these problems within the cryptomarket.
More importantly, that same global audience should be addressing issues that relate to a global economy, specifically one that focuses on decentralization.
The truth is that for all the minor growing pains that the cryptomarket is going through right now, there’s significantly more potential for meaningful, impactful growth in the cryptomarket than any other financial system currently accessible to the general public.
Since we already touched on the topic of decentralization, let’s take a deeper look at what makes it such an important topic to a global audience.
From the perspective of a global economy, decentralization is arguably one of the most important issues we have to deal with, when it comes to financial markets.
For those of you that may not be familiar with the inner workings of cryptocurrencies, they essentially function via a global network of computers. This global network uses blockchain technology to manage the database that’s recording every single Bitcoin transactions.
Bitcoins are managed within their own network, which means they’re not controlled by any one central authority. These individual networks function cooperatively, on a peer-to-peer basis. In other words, whenever a currency is decentralized, it means you own every aspect of your money. Cryptocurrencies are uniquely suited to save users time and money by avoiding transaction and exchange fees on an international level.
More to the point, the power of decentralization lies in the fact that no central authority can hold their power over your money, and no bank can decide to take it away from you. While in an ideal world we wouldn’t need these systems, the reality is that the traditional banking system has had its share of both minor and major issues over the years.
Confused? Let’s try a little thought experiment.
Imagine that you keep a sizable portion of your money in your Paypal account. One day, you go to access your account only to find out that you’ve been locked out because you’ve somehow violated the terms of service.
Now, here’s the frustrating part. You’re not just losing access to the perks of having a Paypal account. No, if Paypal wants, they can freeze your assets and lock you out, all without consulting you throughout the process.
What’s worse, now you’ll have to jump through all their hoops and get through all their tedious red tape before you can even access your money, let alone use your Paypal account again.
In a word, the appeal of decentralization comes down to autonomy. And this is just one of the many issues that are worth discussing when it comes to the future of cryptocurrency.
When an issue is this big, and impacts the finances of the global community, shouldn’t our world’s greatest minds be trying to find the answers?
Which issue do you think the World Economic Forum should tackle first, when it comes to cryptocurrency?