You would be hard-pressed to find someone in the modern world who has not heard of cryptocurrencies at this stage in their adoption. With so many news outlets covering them and so many individuals considering them as investments, you may find yourself wondering, why does any of this matter? To answer that, let’s briefly explore why cryptocurrencies matter not simply to the future of finance but the evolution of our society.
Historically, money has always been the prerogative of the state. Central banks issued money at the behest of executive policy and governed the nation’s monetary supply with absolute authority. Bitcoin and the broader cryptocurrency markets represent the separation of money and state.
For the first time in the history of our species, money will be able to trade freely on the open market. No longer will your purchasing power be stolen away by macroeconomic shifts that lead to increasing inflation rates. No longer will states be able to freeze your funds or institute monetary controls. Cryptocurrencies free money for the shackles of the nation-state.
Using exchanges such as Earnity by Domenic Carosa & Dan Schatt, individuals have the choice to “opt-out” of the monetary system they find themselves in. They are able to freely send money to anyone on Earth, regardless of where they are. They can protect their wealth and purchasing power from the slow decay of inflationary pressures by saving into stores of value like Bitcoin.
Beyond the separation of money and state, cryptocurrencies also present an opportunity for decreased reliance on centralized financial institutions. In the future, decentralized finance may allow everyone and anyone to participate in the financial system. These individuals will be able to secure loans, mortgages, and banking services without the need for a bank account. Lower interest rates and fees on these loans, mortgages, and accounts represent real value to ordinary people across the globe.