MASS ADOPTION OF CRYPTO & BLOCKCHAIN ONLY HALF A DECADE AWAY

Hello friends!!! This might sound unrealistic but crypto & blockchain will be mainstream within few years. It is now in early stage of mass adoption. Because people are not much aware about crypto and block chain as they are involved with current traditional banking & financial systems. People of different categories are bound to use these services because they have no other alternatives. A farmer of a small village working hard on his land to cultivate different crops or vegetables in order to sell them in a market and earn some money. So to save his hard earned money he is bound to use these services. Governments also providing different kind of loans to farmers for farming and cultivating with long tenures of time period to refund their loans. So in this whole process it becomes mandatory for people like farmers, workers, businessman and others to use these services. Without proper banking channels people are not able to transact with each other Or trade within themselves. So banking services become an essential part of our daily lives.
There are different kinds of people around the world belongs to many different races and religions. But one thing that unites people no matter where we live is 'money'. Today we use money for almost everything from fooding, lodging, dressing, buying utilities to using many different services. To earn this money people Works hard throughout their life. Some people follows also wrong path to earn this.

But who does knows what is the actual meaning of money? How and who have control over these paper currencies? Who decides what is our purchasing power? Who knows about how much currency today are in circulation worldwide? The answer is that not much people have awareness about all these information. People are using it in their daily lives but they never think about their purchasing power or the authority of people and organisations that control their money. One should question himself that before 2-3 decades our parents and grandparents were able to fulfil all their needs with a little amount of money. They were able to afford all their basic needs. But why we can't afford those things that our grandparents were easily affording. This is because our purchasing power has been reduced drastically. But why did this happen? This is due to devaluation of our money. For example if today one can exchange 68 INR for 1$ and after one week he could exchange 75 INR for 1$. It means the value of Indian rupees got devaluated after a week. As because before he was paying 68 rupees in order to get a Dollar but now after a week he is paying more
to get 1 Dollar.

So why money got devaluated? Some of the main reasons are inflation & hyperinflation. Inflation means increase of prices for goods and services over a period of time. Hyperinflation means increase of prices for goods and services for about more than 50 per cent over a very short period of time. This happens when any government prints more money to increase spending.

So how do governments print money? In India and worldwide a 'Minimum gold reserve system' has been followed since decades. Indian reserve bank issues new currency with the backing of gold reserve and foreign currencies. This minimum gold reserve system has been followed since 1956. By this system RBI can print money against maintaining a minimum amount gold of value of rupees 200 crores. If more money to be printed then more gold has to be kept in minimum reserve system. But who knows how much gold is backed against our national paper currency. Due to lack of transparency people does not know how much money in circulation today and how much more can be printed against a fixed amount of gold. These systems are maintained by government agencies in many different countries. As we all know that systems are getting corrupted day by day more money are printing day by day and send to the market for increasing people's spending. By which money circulation increases and currency devaluation continues.
People want to safeguard their money and that is why they are keeping their money in the banks provided by our governments. People are also expecting some returns on their investments or saving that’s why they invested major part of their earnings into banking schemes. Today people are investing in Recurring D deposits, Fixed Deposits & many other money back schemes. They expect to double their investment within 8-10 years. But have they really compared their returns after such long period of investments with value of money at that time. I mean if someone is saving something in a banking scheme for 10 years, And the bank returned a doubled amount on his investments after that time period. Will it have the same value as it is today? I think no, its value will be reduced due to inflation. For more clarification let's have an example. Suppose currently you are saving 100$ a month in a banking scheme. Then you are saving 1200$ a year. If you are continue saving with that bank for 10 years with the assurance of the bank that your deposited amount will be doubled within 10 years. Then you will pay 12000$ in 10 years. As per banks promise they will credit your account with 12000$ ×2 = 24000$ after 10 years. But does those 24000$ will have the same value after 10 years as it is today. Is it predictable that prices for goods and services will remain the same or two times as it is today? No, it will not. We all have witnessed that prices for goods and services are increasing faster than the value of our money. For example let's talk about gold prices.

Here in the above charts we can see that gold prices increasing fast within a decade. Here in the chart gold price was below 600$ per OZ (31grams) in 1990's and in 2000. But it becomes tripled by the year 2010. Trading above 1800 USD per OZ (31grams).

So we can clearly see here that prices of gold multiplied by 3-4 times while the valuation of our money only doubled within a decade. Which indicates our purchasing power of gold or other commodities has reduced significantly. The value of our money is decreasing day by day. Again in the chart above it is showing gold prices in INR. We can see here that gold price was below 15000 INR per OZ (31grams) and now trading around 90000 INR per OZ (31grams).

Central authorities controlling money supply to the market and transparency of the system. So what alternative do people have now? How people could control their money? How the whole financial system will be more transparent and less corrupt? How people can transact with each other without having any central authority or third party in between them? How their purchasing power will increase over time?The answer to all these questions is BLOCKCHAIN & CRYPTO Currencies that is emerging worldwide as an alternative to unstable and less transparent currency systems.

So what exactly is Blockchain?
Blockchain is a distributed decentralize public ledger in which transactions made are recorded in a chronological order with full transparency. Actually it is a list of records that is growing continuously block by block using Cryptographic security. It is completely decentralize. There is No central authority that controls it. It runs on an algorithm that is functional on the internet. It means it is a computer programme that can be transferred from one computer to another directly without any central server. It is completely peer to peer. If someone sends a transaction on blockchain, then it is clearly mentioned on blockchain records which are impossible to modify. And it will be delivered on the other end without any third party involvement in between. Any information on blockchain is completely public and secured that no one can modify it.

So how transactions processed over blockchain?
The answer is, If someone sends some information over the blockchain network then it will be delivered at the other end after number of confirmations in the network. For example: suppose A sends some information to B over blockchain then the information will be delivered at B after a number of confirmations broadcasted on the network. Here confirmations mean thousands of computers that run this computer algorithm on their node and they are confirming that A sends some information to B. They are one type of witness of this transaction. These witnesses are not humans these are powerful computers that runs this algorithm on the blockchain over the Internet. In this way we have found a system that is fully transparent and corrupt free. This system is very much secured as it uses cryptographic security.

But how this blockchain will replace current paper currencies?
As we have discussed about existing currencies in this article before. We know that their value is decreasing day by day. Their total circulation is still unknown to everyone. No one can calculate how much money is in circulation today? Because it is less transparent to the general people. These paper currencies are controlled by central authorities. They can be printed more and more without having any gold backed reserved system. One may argue that money can't be printed without gold standard. But how many people does actually knows about the money that is printing newly and entering into the market has a gold backed to it. If yes then where is the 100 ℅ actual correct information that ordinary general people have access to it? The real truth is Federal Reserve of a country or a central bank has the complete authority to regulate and maintain it. Currency devaluation, central controlling authority, corruption, less transparency, intermediary entities are the demerits of current financial and banking systems. This can be eliminated by Blockchain and crypto currencies. That is more transparent, secured, peer to peer, corruption free, purely technical and value oriented in future. One of the best examples of blockchain technology and its features is Crypto assets and the most famous BITCOIN. No one knows how much paper currencies are in circulation today and how much more will enter to the market in future. As government agencies have control over it. So it can be printed more and more. But in case of Bitcoin its total supply is fixed. Anyone on the internet can check its circulating supply, its current price and market capitalization. It has fixed total supply so that there will be no inflation. And due to its limited supply its value will increase significantly in future. It cannot be printed more as it generates by solving complex mathematical problems with the help of powerful computers having an internet connection.

Block Reward system
After every new block found Bitcoins generated are rewarded to those miners who run the blockchain system on their computers and validate those transactions by solving complex math problems. It is completely secured and unhackable. Its transactions once recorded on blockchain is nearly impossible to modify. So people can trust it without any worries.People generally attracted towards technology and they want real transparent and corrupt free financial system with control over their money which is secured and full accessible.
So from the above discussion we know that only Blockchain and cryptos are the alternative that best fits to these requirements. In this way people will migrate from paper currencies to digital money that is fully decentralise in nature. People are not much aware about crypto currencies and its underlying technologies till today. But that day is not too far away when people will be used to it in their daily lives. Currently big institutional investors are starting to enter this new asset class. Hedge funds and ETFs are not very far away from entering to this market. Regulators are now cautious enough about making various regulatory frameworks in order to adopt this new technology that will shape our future. So slowly but steadily Crypto and Blockchain is replacing traditional systems of finance and banking with more transparency. In between 5-6 years it will be mainstream and lead to mass adoption. That day we will see the true democratization of money.

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