Cryptocurrencies against classical economics

YOU CAN NOT ANALYZE A TOKEN ACCORDING TO THE VISION OF THE CENTRAL BANKS

By Alex Vallenilla / @alexvallenilla

The problem of economists with cryptocurrencies is that most of them do not understand what they are facing. It does not make sense to analyze or revise one of the projects, trying to apply concepts of classical economics, especially when talking about trust, one of the foundations of fiat money, so it is accepted in the world as a means of payment. Cryptocurrencies can not be defined with the concepts of money, quasi-money or try to verify if there is any authority that manages them, unless they respond to centralized entity policies, it is very common to listen when they ask "what backs them up".

Each development has a purpose. Bitcoin is still the leader, it was the one that broke in and although in the community there have been differences, clashes, bifurcations, updates, due to the issue of scalability, there it continues to dominate the rest in at least 60%, followed by ether, the store of applications or smart money.

Central banks will become obsolete in the not too distant future. The irruption of cryptocurrencies will create this type of situation, more so when large corporations still fail to hit the nail on the head to see how to control this technology. The new generations are adopting the use of these and the projects that arise are becoming more innovative as the Sun Exchange that converts solar energy into tokens. By the way, a response from developers to the criticism that bitcoin consumes a lot of electrical energy and generates environmental impact, even in this block chain is being reinvented, in passing these are highly profitable projects.

The cryptocurrencies, which do not have jurisdiction, can be considered as universal, international currencies, which do not even belong to any country, they are quoted against the fiat currencies of each country according to the users use them. The way of storage, the forms of exchanges, production or creation, have nothing to do with the way a central bank issues money for its citizens and does not have the same impact on economies.

Venezuela: In the face of the payment crisis suffered by the country due to the destruction of the value of the bolivar, the use of cryptocurrencies has been generalized. There are collapsed sectors such as public transport, due to the lack of cash, a crisis that has been solved by implementing NFC contact systems, loaded with economic cryptocurrencies, such as dashcoin or implementing sidechain operations, which would allow that sector continue to operate and leave the scheme of the failed bolivar, however the authoritarianism in the nation still weighs.

Colombia: Just a year ago in Colombia there was talk of bitcoin, now the cryptocurrency has been gaining more space, in the coffee sector there are agricultural producers who have dared and sell their production in exchange for tokens of the main project, the population of Cúcuta has been a pioneer and the one that gave entry to the cryptocurrency.

Peru: The payment platform and now a provider of digital portfolios, Skrill, has entered Peru, offering the purchase and sale of bitcoin, ether and litecoin to its inhabitants, as well as entering other Latin American countries, but the limitation is that they are only user operations with the platform, not between users of the same platform or outside it. 07/27/2018