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December 25, 2017, 06:14:34 AM |
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"Cryptocurrency" is the medium, not the message "Cryptocurrency" is a confusing term - Bitcoin, Litecoin, Dogecoin, etc. usually come to mind.
It's simpler than that: a cryptocurrency is value that can be cryptographically secured, and digitally represented and transmitted via the Internet.
Bitcoin fits this description. So does a Euro that also meets these characteristics. There are differences, e.g. one is the product of national monetary policy; the other isn't. There are also similarities, e.g. they both benefit from the technical capabilities of the Internet (there are lots of benefits).
Convertible + transferable = interopreable With that in mind, I think it's safe to say that an increasing variety and volume of existing stores of value - national currencies like Euros, commodities like gold, Internet currencies like Bitcoin, etc. - will become transferable and exchangeable as crypto currencies, likely using a common protocol (like Ripple (payment network); note - I work at Ripple Labs) to do so.
For example: today, Bitcoin is a valuable commodity (~$5b), and so are loyalty points (~$350b) gold (~$10,000b). Rather than using cryptocurrency technologies to switch these stores of value to a new single store of value, why not focus on making them more interoperable, i.e. easier to exchange?
Cryptocurrency can be a friendly movement I think interoperability is a more practical and credible outcome that requires less disruption (damage to the incumbent ecosystem) and more construction (enhancing the ecosystem).
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