THE GREAT CRYPTO DEBATE ~MY ENTRY.


Good day respected guardians, fellow trenndians and everyone reading this.




I'm writing in favor of the topic "crypto currency, a new alternative or a new danger"


According to Joel McLeod "Crypto currency is absolutely here to stay, if you can't see that at this point it's time to learn more about it."


I'll run you through a brief of what crypto currency actually is as many people might still be lost in this world.


Crypto currency in simple term refers to digital money, that's how I like to call it, an asset you can't touch but you know It's there and has value.


Just like the traditional bank notes and coins, Crypto currency can be used as a medium of exchange.


The origin of Crypto currency dates back to 2009 when a developer known as Satoshi Nakatomo invented the first ever decentralized currency known as Bitcoin.


Decentralized in this term means being free from a central control unlike our traditional currencies where we have central banks and these central banks determine how bank notes and coins are printed and circulated around a country.


For Crypto currency, there's nothing as such, no one is control of how the transactions are done, there is no central meeting point.




I would have very much want to give more details on how crypto currency works but that would mean deviating too much from the main topic.




So many countries have suffered inflation and hyperinflation within the last two decades, from my little knowledge of economics, this happened because most of these countries couldn't produce enough products to export in exchange for foreign currency hence they was a great shortage of dollars and money in general in the country. 


Zimbabwe is a good case study here, due to the shortage of money in circulation, the government had to give an order to the central banks to print more bank notes which had a huge negative effect on their economy causing hyperinflation.




Just recently, the country is planning on fully adopting the use of crypto for it's local market as well as international trades since it's local currency had become very weak as compared to the USD. The aim here is to use crypto as an alternative to the dollar and hence be able to carry out international trade using her own crypto currency. Though it's still an idea in process but many finance experts have predicted there would be a significant increase in the economy of the country if she's to fully adopt the use of crypto trading option.




Why is crypto currency a new alternative? Using Bitcoin as a case study.




Ease of Carrying out Business Transaction with Anyone in the World: Take for example you're in Nigeria and you have someone in the UK whom you want to run a business transactions with, let's say you want to buy his car, so you have to pay him and he ships it down for you.


Though I've never sent or received money from someone outside the country but I'm very sure this would involve a lot of stress and processes if you're to pay in dollars. 


Assuming you're to pay in dollars but you only have Nigerian naira, that would mean going to the bank for an exchange, after which you can send through bank transfer which requires some paper works and takes very much time, also a great fee for charges comes along.


Now what if the buyer agrees for you to pay in Bitcoin? the whole process then becomes very easy and simple, all you have to do is convert your naira to Bitcoin using some exchange e.g Luno, after which you request for his or her Bitcoin address and you make the transfer. It's so simple and easy, there would be a very low fee taken for charges as well as not taking up to 30 minutes to compete a transaction with someone in another continent, that's the beauty of Crypto currency, ease of carrying out business transactions.




Security and Privacy: Transacting with Bitcoin requires no paper documentation and can be done as a form of peer to peer exchange, without even knowing the name of the person you're transacting with. All you need to make a transaction using Bitcoin is your Bitcoin wallet address which has no name or personal information attached. Unlike the traditional banks where your information and the records of all your transaction are stored and kept. Though some persons point out some dangers which this might bring about but I rather prefer to remain optimistic seeing that bigger and better side of it.




The Tendency of an Increase in the Value of Bitcoin; As at 2009 Bitcoin was worth basically nothing, I'm sure you must have heard the popular story of the guy who bought a pizza with 10,000 BTC in 2009. Around 2010 it became $0.003 per BTC, gradually it began to rise and as at February 2011 it already went to $1 per BTC. Then came the big boost around April 2013 when it rose to as high as $266 per BTC and the increase continued since then without slowing down. Currently Bitcoin is trading at $9300 per BTC. Now imagine if you had bought 100 Bitcoins at a total rate of $0.3 in 2010, and had left it until now, today you would be worth over $930, 000.


But what if you had saved $200 in your bank account up until now, I bet you won't have an made an interest of worth more than $3000. This shows the great advantage Crypto currency has over bank currencies and notes, which is definitely a reason for anyone to invest in Crypto.




Elimination of Banking/Transaction fees; In the traditional banking system, a lot of charges are paid when carrying out a transaction, the banks debits you monthly for the services they render. This doesn't happen with Crypto currency since there's no third party involved and it deals with a peer to Peer form of exchange.




Nigeria is also gradually moving towards the path of digitalization like every other country and wouldn't want to be left behind. Just recently, the first and only Bitcoin ATM machine was introduced in Lagos State, this would make transacting with Bitcoin become even more easier and flexible, with that machine you can easily convert Bitcoin to cash in your local currency without stress.




Let's take a look at the project NIRX, NIRX is a block payment system which allows people to carry out transaction using NIRX tokens.


NIRX or NairaX ERC-20 stable backed coin serves to represent one single unit of NairaX, which is valued at a 1:1 ratio to the Nigerian Fiat Naira (NGN).


The project was introduced as an alternative payment method to the Nigerian naira.


Crypto is obviously taking over so it's good to see many individuals picking interest in this airspace. What I love about this project is the fact that the value of assets doesn't go down below the benchmark of the naira, but could have a significant rise overtime which would bring about profit for investors. Take for example I invest in NIRX and I buy up to 20,000 NIRX tokens at a rate of 1Naira each. 


It's certain that I can't loose rather I will be hoping to have an increase in the worth of my tokens. Currently her head office is located in Located in Lagos Nigeria and the owners of the project would be hoping to span across the shores of Africa and beyond aiming to become a global token which can be used for exchange anywhere.




In summary, I see Crypto currency taking over the world in a very short period from now, some days back I read on a news that very soon people would be able to buy Coca-Cola using Bitcoin in Australia, that's how it starts until a time would come when you can pay for groceries using Bitcoin.




All these and more points out the reason why Crypto currency is a new alternative rather than a danger in disguise.




With these few points, I hope I've been able to convince you that crypto currency is a huge future alternative to bank notes, coins and centralised form of banking



Thank you.



COMMENT

20

Don Christov
22 Jul

I love the points you raised here I must say, very valid argument for the adoption of Crypto as an alternative. I only have a fault with one though.

Your last point said Crypto eliminates  transactions fees, well that's not true. There are still transaction fees and sometimes its even more expensive in Crypto than in the traditional financial bodies. Take for example now when the gas fee for the Ethereum Blockchain is crazy high. There have been stories of people paying millions in gas fees, so that's just one thing I had to add.

But all in all it was a beautiful and well researched one I must commend you.

18

Auto Villez
22 Jul

Thanks Don I appreciate your comment, well I'm aware that the transaction fee could be high most times but I've also noticed that it varies, few days back I wanted sending 500naira worth of ETH to someone and the fee was around 400 naira I just laughed and left it, I came back after 2Hrs and the fee dropped drastically to less than 100 naira. I'm still new in this crypto airspace so still trying to gradually understand the system. 

14

Obinna Ozoigbo
22 Jul

Mmmh...So many pros of the cryptosystem. Does it mean there are no cons? Well, I think there are, one of which is the transaction fees payable (which you stated as nonexistent).

All the same, I took in a lot of information about the origin and rise and gradual worldwide acceptance of the crypto world, all thanks to Satoshi Nakatomo.

18

Auto Villez
22 Jul

Crypto is gradually taking over and it might become generally accepted soon enough

16

Alfa Frankly
22 Jul

this is of the most  comprehensive piece,  we'll observed and of course informative, I've read as regarding this debate. 

The facts are convincing that crypto  currency is here to stay and will do much of good than bad. 

18

Auto Villez
22 Jul

That's it bro, Crypto currency is here to stay and we must all learn to adopt and accept that fact

24

preview not available Victoria Haruna
22 Jul

Awesome.
Have you dropped your link at the comment section of contest announcement post?

18

Auto Villez
22 Jul

Yes Ma, I've done that. Dropped it almost immediately after publishing

Luke has donated 1000 points to Auto Villez 3 months ago

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