Cryptocurrency Will Be One Of The Biggest Stories In The 2020s

in LeoFinance7 months ago

There is a lot going on with technology. This decade is going to be one where, when we look back, we will say that life was not the same as it was in 2020.

By stating this, it is not referencing the COVID situation, or even the push for greater government control. Instead, we are referring to the technological changes that are already underway.

We are going to see some major industries completely upended. One at the forefront is the financial services industry. This is one of the larger ones in the United States, accounting for a significant percentage of the overall GDP.

Financial markets in the United States are the largest and most liquid in the world. In 2018, finance and insurance represented 7.4 percent (or $1.5 trillion) of U.S. gross domestic product.


Bitcoin is capturing a lot of attention at the moment. This is due to the price run. Obviously, Wall Street is getting on board with the leading cryptocurrency. But why is that?

One of the reasons is we are seeing Bitcoin positioned as a store of value. These entities believe that this currency will end up being used for reserves by many institutions. There is already talk about some banks holding Bitcoin as reserve. It is only a matter of time before we heard rumblings about governments getting involved.

There is no way to deny that money is at the core of our society. It is a part of most everything we do. For the time being, until we somehow move towards a post monetary world, money will still be central to all that makes society function.

However, central is no more. Since the introduction of Bitcoin, the monopoly that nations held over the creation of money was expunged. Now, we see the ability to generate a currency in the hands of most anyone with an Internet connection. While it is still a bit technical, that will get easier over time.


What happens when we are in a world where creating one's own currency is easier than putting up a website?

All of this is leading to massive innovation. This creates a feedback loop that only accelerates things. In the stock market, innovative companies are always rewarded with higher stock prices. Many contest the value of said companies but, in the end, money flows into them. Innovation is the engine of growth.

We can expect to see the same thing in cryptocurrency. Since it is a technology, constant innovation is taking place. We are seeing new ideas being tested on a regular basis. Those platforms that spark innovation are going to get handsomely rewarded. Markets simply cannot resist being involved where that is taking place. The risk of missing out on big opportunities is too great.

The same could be said for the entire industry. Since it is often difficult to see what is happening within one circle of development, when we step back and treat the entire situation as one, we see that a ton of innovation is happening. This will only continue as we move towards interoperability.

A benefit to all this is things go parabolic when stacking of technologies is involved. Obviously, combining cryptocurrency with automation (AI) will lead to a host of possibilities. At the same time, we can see how a crypto payment system tied to Internet of Things (IoT) makes perfect sense. It is much easier for an autonomous taxi to accept and make payments in crypto. This could be designed for the network to be utilized for marketing/customer retention.

Ownership is becoming a heavily discussed topic. This is naturally focusing upon data yet it extends to much more. During COVID-19, the world's wealthiest saw their net worth moon. While much of the world suffered, they got richer. The reason for this is because of their ownership stake.

It is a time proven fact that the key to wealth is ownership of production. Regardless of what form that comes in, those who own assets end up getting wealthier. Sadly, those without, do not.

This is the essence of our income and wealth gap. Those who do the owning are benefitting greater than everyone else. Unfortunately, participation is closed for most. Even those with some means are not involved in the very early stage deals. We get to participate when something goes public, a time when big money was already made.


Cryptocurrency and decentralization changes all that. Wall Street exclusivity is being challenged. Now, anyone has the right to buy whatever products are out there. If one wants to enter the derivatives market, something very small thus far in crypto, that will be available. When decentralized exchanges start carrying those types of assets, anyone can buy.

Of course, there is a risk of entering those waters so people are going to have to start taking responsibility for their actions. There are bad actors everywhere, including Wall Street.

Essentially, cryptocurrency is going to change the distribution of capital around the world. People are going to have options through crypto that is not available to them now.

In technology, we discuss the network effect. This is where a network system grows in value based upon the number of nodes it has. A simple way to think about it is "users". Naturally, the more users, the greater the value.

What is interesting is that this applies to anything that we value. People choose what something is worth. As more people believe in that particular asset, then it tends to go up in price.

Right now, crypto is not valued anywhere near the present system. The reason is obvious: very few people involved. The USD continues to be valued around the world because the overwhelming percentage of transactions take place in this currency. If that changes, we can expect to see the desire for dollars diminish greatly.

When we couple the network effect with innovation, and pair that with the underlying basis for much of society, we see how big this can become. Since the base technology is blockchain, we can see the technological move towards decentralization as tying into this.


As we start to consider the metaverse and virtual layers that are seemingly infinite, cash or fiat does not really apply. These lack the programmable qualities that are necessary for newer levels of innovation. Cryptocurrency does not.

In the end, the idea of having to deal with bureaucrats and regulators is going to be even more unappealing than today. Why would a developer opt for a currency that is under this scrutiny when he or she simply can use one that is not (or make one)?

Bitcoin introduced something that has not been seen in hundreds, if not more, of years. Our monetary system was shaped in the physical world. That is its realm. Today, however, we are in the digital age and rapidly progressing towards the virtual. This is not going to co-exist with the present monetary system.

A prime example is banking. The largest banks in the world have a major portion of their assets tied up in physical branches. That was the barometer that was used to judge which banks had the most power. Number of locations coupled with some of the most expensive buildings in a major city is what told the story.

Now, a "bank" is on a smartphone through an application. There is no need for a physical location. What go through the expense.

Society is going to see a technological boom. This has not happened over the last 20 years where much of life was altered. Many claim that life is not that much different today than it was in the year 2000. That is true to a large degree.

However, one did not stand in 2000 and say that life did not change much since 1980. From a societal standpoint, much of life, both work and leisure was altered over those 20 years.

This is the cycle that technology goes through. Today, we are on the verge of seeing automation, cryptocurrency, AR/VR, renewable energy, and gene editing as technologies that are going to alter major aspects of life. Augmented Reality, for example, is going to affect almost every industry that is out there.

The same is true for cryptocurrency. As more nodes become connected, crypto networks are going to play an increasing role in the world over the next couple decades.

Many term it Web 3.0 or Industrial Revolution 4.0. Whatever we call it, crypto is going to be along for the ride.

For those who are involved early, they have a head start on the rest of the world.

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In technology, we discuss the network effect. This is where a network system grows in value based upon the number of nodes it has.

Think of Hive Dapps supporting each other. We really need this ATM. Different front ends are trying to onboard new users. Those who sign up with may have no clue about Splinterlands or or I've found many Dapps because they were part of the Hive ecosystem.

Eg: I find out and eventually join @risingstargame because I was involved with @battlegames Surly there's many similar stories for many people. After they have Keychain installed everyone can easily interact with all Hive Dapps. We have to think of the full ecosystem and support others. We can all win.

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Absolutely brotha 👊

You hit upon a key point: having a Hive account is opening the door up to many other possibilities.

We are seeing, on a much smaller scale, the ability to operate like with a Facebook or Google account. Those spread across the web. With a Hive account, one can access dozens of applications/games. And the number will grow.

I agree that I think having a Hive account, down the road, will have value in and of itself.

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I agree that I think having a Hive account, down the road, will have value in and of itself.

We can already see the value here. I've tried out many games easily because I already had the account and Keychain installed. It's far easier than even traditional social media login because you have access to your funds at the same time too. No need to pay with your credit card when you can simply sign a Keychain Tx when you are shopping. Just think about the ease!

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Absolute agree. And I think cooperation can also get further. Tribes and Clubs and community accounts should make their members aware of one another and actively foster cooperation. We currently try this with spinvest-leo and edieearner. I think one of the main differences to the current system is that the big success is in bringing people into cooperation and overcome separation and by defending "your" business model. Interesting times ahead.

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I can agree with everything said and hope these visions will be a reality soon. 👏 👏 😎

It is interesting to think about where we will be at the end of the decade. Crypto is in a huge state of growth and development. I do hope the crypto world goes away from the proof of work concept sooner than later. It is very energy intensive and wasteful.

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I do hope the crypto world goes away from the proof of work concept sooner than later. It is very energy intensive and wasteful.

How is it wasteful? It is going to secure a network with billions of dollars in transactions.

How much energy does Visa or Goldman Sachs or Facebook use? How much are we using on Hive?

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At least how I understand it, for POW coins like bitcoin and ethereum miners maintain the blockchains and nearly 100% of the work done is essentially busy work to show proof of work. In contrast, Hive is run by nodes which do nothing but maintain the block chain. No busy work, just useful work. All the transactions done on Bitcoin could probably be done on Hive for the power it take to run a single home, where as Bitcoin mining alone is estimated to use as much enough as not so small countries.

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We're very lucky to be on this train already. Very lucky and smart.
Sorry, I couldn't resist bragging a bit.

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Way more smarter than the rich kids of the previous bull markets that spent all and probably working at McDonalds now... or UPS. The education and vision is what I am mostly proud about from this crypto experience.

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Indeed. I learned English and finances in these four years on steem, hive, and Leofinance.

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Pretty much the same in here. I will be three in about a month from now.

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We saw the same thing in the dot com bubble.

It is all part of "Where are they now" series.

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You are absolutely right - but it was not an easy task. It was no fun to stand the crypto-winter and to see a lot of people rolling their eyes if you told them about your hobby. The people around here at the moment have shown that they stick to a sound idea also if things are turning in another direction first. The place will be (hopefully) crowded soon with a lot of people that also claim that they "..are here for the long term" and believe in BTC "..because of the technology and not because of the price" but it is not more than lipservice. Sorry, couldn't also resist ;-)

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I can tell you something about crypto winter.
My 1M dollar steem stake dropped to 14K dollars.
How about that?
To be even more fun; I invested $30K (fiat) in steem at $3.

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That is really a sad thing. I put around 1.25 BTC into steem in that Cryptowinter (another account) and on BTC Basis the loss quite is substantial and still increasing. However, there was absolutely no other place where I learned so much about that industry. It was kind of an investment into my knowledge that will pay out over time (I hope).

It is not easy to hand in the early days of technology. In fact there is great risk.

Look at video conferencing. Zoom is, well, zooming yet Cisco dumped a boatload of money in a decade ago. They did not profit to nearly the same degree as Zoom did who came much later.

Nevertheless, those who stick with the winners and remain true are going to profit greatly.

The challenge is which projects will be winners?

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Sorry, I couldn't resist bragging a bit.

As they say, it isn't bragging if it is true.

I agree. We are very lucky..the smart part, okay we will go with that.

There is so much happening across the space that, when things truly erupt, people are going to be stunned.

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Covid has actually helped crypto as it has woken people up that the present way of doing thing sis not going to work for the average person in the street. Other forms of investing need to happen and why Crypto will see a boom as more and more are forced to get involved which we are seeing it happen and play out now.
Being involved now kind of makes perfect sense as technology as you rightly pointed out is becoming highly dependent on block chains and will only increase. Most of the top companies today are already on them or are developing in order to use them. 2021 is looking better and better and actually can't believe things are moving so fast.

With the attention that Bitcoin and now Ethereum are starting to get, it could be a wild ride. There is so much happening it is truly baffling.

It is fun to see where this is all heading. We simply enjoy the ride because it is going to provide a lot of value to many wallets.

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I think this will and there will be plenty of rich people made over a short period of time. I just hope they hold and use crypto for living instead of cashing out.

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Only average people think of cashing out. Those who make big money are thinking of more places to make it grow.

Most of the BTC profits, if I had to guess, will end up flowing into other projects as things get more developed.

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i really hope for hive and leo to take it off! Leo already has shown the way by making a new ath!

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and another winning year for btc i bet

Ethereum looks like it is off to a good start also.

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and dash not so much👀

Just curious, do you see a future where individual shops have their own cryptocurrency for patrons to purchase goods? I can see the benefit if the vendors had added benefits that provided value to the patrons, but if it is just a million different shops with a million different tokens, it could be a huge headache for patrons. Unless there is some way to easily exchange like a DEX I guess.

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I think wallets eventually become DEX where that is handled automatically.

But yes I see a token for every occasion. More everything will be tokenized, most likely with a standard protocol (or a couple). That way they can seamlessly be swapped for others.

We are going to see a lot of innovation in the way tokens are used. For example, access tokens are something that isn't getting a lot of attention but will in the future. We are dealing with programmable money so what is programmed can open up a lot of doors.

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Very Interesting!

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There is no doubt about it. Even the most skeptical people will have to accept this revolution.

Well, too bad for them if they continue to resist what is inevitable.

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Many still are unaware of it. I am not sure that is resistance but they still believe in the old system.

More are getting burned on a daily basis by it yet they still hold strong. The propaganda machine is very powerful.

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True, I am happy to have experienced the bullrune of 2017/2018, the bear market until the middle of 2020 and now a super Bull period again!

We can tell it to our children and our grandchildren :)

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Just part of the cycle. If the bear is done, it is not the last time it will rear its ugly head.

It will happen again.

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Bang, I did it again... I just rehived your post!
Week 38 of my contest just can now check the winners of the previous week!

Awesome! 3.png

Tokenization of assets and the blockchain technology will definitely change the way we understand our systems right now. I believe that the advent of blockchain technology will address the global problems that we may not know exist at the moment.

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 7 months ago Reveal Comment

Central banks print like hell. Governments use the money as party favors and to further their power.

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