Hello. Crypto fans and investors. My name’s Jason, a senior analyst from CG.NET.
It’s time for our weekly Jason Token analysis.
Digital currency has been controversial since its inception, and the intense debate on digital currency on the Internet has never stopped.
01
People who are optimistic about digital currency argue that blockchain reconstructs the human production relations. It is different from any previous productivity-related changes. Changes like the industrial revolution or the Internet, without exception, are aimed to improve production efficiency. Blockchain, because of its decentralization and no intermediate links, has immeasurable value.
As a product of blockchain, digital currency has also been popular in the world, and the enthusiasm on it has been very high. The user base of digital currency is the financial investors around the world. In the Chinese stock market alone, there are as many as about 130 million registered users and nearly 70 million active users. Let alone other countries. So there is a huge growth potential for digital currency.
In addition, many commercial values remain to be explored out of blockchain. The most common one is its anti-counterfeiting and traceability, which has been applied to many areas. The role of digital currency as a certificate in this will bring a lot of fresh blood into the market, and the prospects are broad.
02
The party against digital currency believes that the its biggest drawback of digital currency trading is inefficiency. Both its speed and efficiency of transaction are at the levels that the Internet has reached a decade ago. It seems quite useless. Even the transaction speed of the currency king Bitcoin is only 7 trades/second. However, Visa, the most high-frequency payment system can reach 90,000 trades /second.
Moreover, the most criticized aspect about digital currency is lack of supervision and protection by legal documents. “Air currency” and “pyramid scheme currency” appear in large numbers, posing a stumbling block to the entry of new blood.
Another point is that the decentralization and autonomy of digital currency has weakened the role of state regulation. In places where regulation is not accessible, the market’s profit-seeking nature will lead to use of digital currency in illegal activities to provide shelter for the underground industry.
03
Everything will turn better once all these problems are solved
In fact, we should look at this rationally. Personally I think that it’s normal that a new industry has various shortcomings. With the continuous development of blockchain, the transaction throughput of blockchain has already broken records last year.
At University of Sydney, the Red Belly Blockchain project team conducted tests in 14 different locations around the world. The blockchain project under study can handle financial transactions 50 times faster than expected, and even exceeds Visa in handling international payments. The trading volume of Visa is as high as 56,000 per second.
04
Undeniably, at this stage, the problems of blockchain are more than advantages. However, like an old saying, “What exists is reasonable”, never could the success of any field be accomplished overnight. It needs to go through a series of development such as pain, doubt, improvement and innovation. Digital currency now is just undergoing such a process.
The journey will be long. Technology is neutral, so its direction and outcome still lies in human hands. Success can be made by discovering and solving problems, rather than by telling void stories. The market must develop toward the good, so I think the key tone in the future will be retaining the good and wiping out the bad.
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Listen to the audio:
https://www.dropbox.com/s/7dnhz0lub73tjw9/Jason%20Token-Debate%20on%20Digital%20Currency.wma?dl=0
