Although not all of us may be driven by money, most of us are familiar with how uncertainty about the future and the lack of confidence about a sustained income can lead to anxiety and insecurity, which in turn can upset our sense of well-being and continuity in life. I mean, astonishingly, even the wealthy live with fear, insecurity, and a sense of inadequacy surrounding their wealth, namely for fear of losing or of being cheated out of it. At the end of the day, it turns out that money is intimately connected to our emotional craving for stability and livelihood.
Since the pandemic has swept across the globe, financial insecurity has spread like mold and at the same time, we are seeing a silent revolution at work.
Money has been around for a good 3,000 years, whether a shell, a metal coin, or a piece of paper was used, the value was determined by the importance that people placed on the medium of exchange. Now Bitcoin, along with 10,000 different cryptocurrencies, has emerged as a new medium of exchange, and some have already seen astounding returns over the past decade.
From the moment that humans harnessed fire and chemistry, we journeyed from the Stone Age through the Bronze and Iron Ages, to our modern developed society, and to this day we remain dependent on metals and alloys for survival. The European conquests abroad provided them with constant new sources of precious metals and as a result, until the 16th century, metal coins were the sole form of currency in Europe.
American Express was vital to the evolution of currency and took us from metal to paper, to the invention of the credit card. Once a product only for the wealthy, accepted at only a few places, credit cards became available to millions of people, and the most accepted form of payment worldwide. Who would have thought that a plastic card would take us so far?
The Gemini card is bringing crypto to the mainstream and this is a serious indication that the world of crypto is growing, as digital currencies and blockchain technology keep edging closer to the mainstream by simply providing crypto in a way that doesn’t alter consumer habits.
Many are embracing the idea of cryptocurrency simply because it removes central banks from managing the money supply. More and more companies are warming up to the idea of cryptocurrency. Institutions are climbing on board in a significant way for the first time, while the tourism industry is ahead of the game boasting some impressive partnerships with some of the world’s biggest online travel brands, all of whom are embracing crypto.
For example, 700,000 Expedia Group hotels and accommodations have been available via the crypto-friendly booking platform Travala.com since 2020, and it is expected that new generations of travelers will demand and embrace new forms of payment for travel.
Is Cryptocurrency going to pave the way? It is not an easy concept for everyone to wrap their head around, but what it boils down to is trust and the importance that people place on the medium of exchange, which will determine its value. Does anyone still write cheques? I haven’t for years, yet at one time, a cheque had a value, yet it was a simple slip of paper, and although many of us saw our fair share of bounced cheques, it was still an accepted medium of exchange.
The fact is that no one really needs gold nor paper, for that matter, but everyone needs to feel safe and to exchange goods and services. The market for cryptocurrencies has exploded and is currently estimated to be worth about $2 trillion, so it would seem many people have given it a vote of confidence. Crypto currency security may still be a concern, however innovative solutions are being found, by the cybersecurity sector, that address these concerns.
Cryptocurrencies were the result of a radical desire for access to assets not controlled by governments and central banks. Ironically, regulations are now being considered to guarantee transparent pricing and security for investors. Many believe that new regulations could help cryptocurrencies become a bigger part of our daily lives.
Will cryptocurrency transform the way we do business? Some say it already has and it could eventually make banks obsolete. One thing is certain, cryptocurrency has transformed the money and finance landscape.