Digital currency; The Good, The Bad and The Ugly

The Good

Digital coins have the potential to transform the entire financial industry; the way email transformed the way we communicate in writing and the way the mobile phone changed the way we interact with each other.

Imagine you are too late for an appointment and trying to inform your friend that you are late without cell phones around… You would try to find a phone booth, park your car, open your address book to find the phone number, find a dime in your wallet and dial the number, hoping your appointment is sitting next to the land line you are calling.

How about life without email? Or life without internet… That would be pretty inefficient. So, we as a society have digitalized the way we speak, write, buy goods and interact with each other. In the financial industry, there is still a lot of human interaction, and manual labor to complete transactions. The 4-eye principal is written in every compliance manual of financial companies and banks. Besides the manual input, the majority of the financial companies including banks are intermediary services or brokers. A bank is at its core a broker between people who have money (deposits) and people who need money (loans). Assist people who have money (debtors) to transfer to people who need money (creditors) for delivered services or goods. With digital coins this is completely automated in a way that no manual labor is needed, hence no human errors and its structured as a peer to peer system, build on blockchain technology, permissionless, global network, alternate means of storing value, making the bank completely obsolete! Furthermore, it will launch so many applications for the future, that is the true beauty of it!

The Bad

Some banks are rated as countries so large are these institutions with 100,000 plus employees. Millions of jobs will become obsolete. People sitting at home 4 –eyeing their welfare check. Causing people talking about a bubble in the making of Bitcoin and other cryptocurrencies. In my opinion, there is a recession in the making with all these jobs at risk at the banks and financial institutions. CEO's and advisory boards have a responsibility here to adopt new technology but most likely they will be to slow to adopt this in their organizations and end up playing with the livelihood of millions of families. Even with the current technology and automation systems, banks need a processing time of 3 days for a foreign transaction. Do the math.

The Ugly

A lot of the altcoins currently out there are probably complete shit and will go to zero. It's game of thrones though. They need to compete to find the next Google's, Amazon's and Facebooks that will change the world. But there is a huge number of ICO's that are scams. A lot of exchanges are corrupt. They are predatory and take advantage of their customers as digital currencies have something that his hard to grasp. It is so simple yet it is revolutionary. It can make so much impact that in another scenario, the "Bad" could end up being the "Ugly". The smartest people in the world are working in the field of cryptocurrencies and the industry has evolved from a simple payment token to tokens and coins that are learning machines to communicate with each other. Ph.D. candidates are involved in creating Artificial intelligence in coins or protocols. Machine learning, AI, peer to peer and a lot of money and investments are flowing into the development of these protocols. Remember Terminator and Skynet…. I'll be back…

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www.tradebits.co

Waseem Sadiq - CEO Tradebits
Amresh Bajnath - CFO Tradebits