The finance world has long eyed cryptocurrencies with suspicion, but these will not flourish by direct challenging traditional banking and transaction functions, according to experts.
Rather, the electronic finance craze has now evolved into a beast of its own – a “crypto-tech” driven economy with its own value creation – the cryptoconomy.
The cryptoconomy will not rise out of the ashes of a hostile battle with the current financial services system; rather it will succeed by creating its own wealth, through new types of services that extend beyond the traditional money transaction.
“The cryptoconomy is a serious event,” writes William Mougayar, an entrepreneur and investor in a recent article in Forbes.
The cryptoconomy “is the next phase of the Internet’s evolution – the decentralization era. Its genesis is Bitcoin’s backbone technology: the ‘blockchain’, a new term with applicability outside of just Bitcoin,” he adds.
“The blockchain is a perfect exchange platform”, described as the “perfect digital money” by Mougayar, for “it can ride on the Internet”, the largest connected network on the planet.
The connectivity of the “blockchain” and the cheap mobility of a digital value has led to a new “value exchange” network of worth.
The cryptoconomy will follow the same evolution of the internet. Starting in 1995 and exploding once developers added web applications, the internet’s explosion mirrors the current path that the “crypto-tech” revolution will take.
“Bitcoin and cryptocurrencies will succeed”, explains Mougayar. “But not by mounting frontal attacks on the current financial system, nor by seeking permissions from regulators and gatekeepers. Rather, change will start to happen by creating a parallel system that will get stronger on its own, over time, and will eventually dwarf the current capitalization we see from the transfer of fiat money into cryptocurrency wallets.”
Once companies start running on a blockchain, they will be able to multiply and grow without central control.
Cryptocurrency – the Internet’s own native monetary value – will unravel and blossom over the next 10 years, it will be interesting to see how and if the blockchain will forge a new economic revolution.
