Decentralised Cryptocurrencies: Viable?
Cryptocurrencies came up with a competitive advantage to traditional currencies as they are based on a system of trust that relies on mathematical properties and thus that will always be correct. This makes it a cryptocurrency that should be easily trusted by its users. It also came with more privacy. As people today are more concerned with their privacy online, cryptocurrencies solved the issue and provided anonymity to people who used them. However, due to its volatility and use for illegal activities, decentralised cryptocurrencies will never last. Warren Buffet called them just a mirage. Nonetheless, the central bank will end up adopting and regulating a cryptocurrency as the new medium of exchange representing real money. In fact, this new cryptocurrency will provide all the advantages of the old cryptocurrencies (anonymity, few or no transaction fees, trust) but will be regulated by the central bank to be more stable and be used for legal ends only.