What Will it Take for Crypto Mass Adoption?

crypto market

Pick a note out of your wallet. Maybe it’s a $5 note. Maybe a $50 note. It doesn’t matter.

Now hold it in your hands and look at it. Really look at it. What do you see?

Now look at it again…what do you really see? It’s just a thin sheet of plastic with a number on it and some fancy print. That’s it. That’s all it really is. It’s just a piece of cut to size plastic.

But you know that with that note you can go somewhere and exchange it for goods and services. You can use it at the pub, the supermarket, the clothes shop, anywhere within your country.

You do this because the shopkeeper knows what they can do with that piece of plastic once you give it to them. They will hand over the goods (or deliver the service) and then they can use that piece of plastic.

They can do and buy more goods to sell to more people. They can use it for themselves to go and acquire goods or services from someone else. They do this because they know someone else will accept their piece of plastic.

For hundreds of years humanity has accepted that various ‘pieces of plastic’ are acceptable forms of ‘money’. But at the end of the day, in absence of a barter system money is whatever the wider population believes it to be.

And what’s fascinating about the world is that there is no one singular form of money. There never has been. Money comes in all kinds of different shapes and forms.

What it boils down to is what one person is willing to accept in exchange for a good or service.

Thin pieces of plastic though we are happy to accept because they come from a ‘trusted source’. The central bank decides on the country’s monetary policy. In effect they are the ‘trusted source’ that decides the money supply in the economy.

So if they decided that the $50 note is no longer ‘money’ they could pull it from the economy instantly. Then that thin piece of plastic in your hand would be worth exactly what it is…a thin piece of plastic.

Central banks are the creators of money

Money in itself is whatever we all decide to accept, but also it’s whatever the central banks decided we should accept.

A central bank for instance could decide that thin pieces of plastic will no longer be money. IN fact they could outlaw every thin piece of plastic in the entire economy. And they might even decide those circular copper ‘coins’ too are worthless.

Instead the central bank might decide that ‘money’ is going to only be digital from now on. They might decide that the only way you can pay for goods or services is with a defined piece of digital code that represents a unit of ‘money’.

That’s a roundabout way of saying, a central bank created digital currency.

This outcome is almost certain. It is only a matter of time until a central bank decides that the entire country will use a bank issued digital currency.

We know that Sweden is testing an e-krona already. This is a central bank digital currency. They expect their inquiry into its effectiveness will be finished in 2019.

My take is they’ll proceed with a full issuance of e-krona and be the first central bank backed digital currency. I expect more to follow. Australia I don’t think will be far behind.

With the developments happening around Open Banking in 2019 and 2020, plus Australia’s new real-time-payments network, it’s a natural progression.

This however isn’t going to be a drastically different world of ‘money’ compared to what we see today. It’s just instead of thin plastic, the central bank will expect you to have belief in their computer code.

But they will still retain all control to create more or restrict the supply of e-money in the economy. They will still manipulate and influence interest rates to control inflation. Your ‘money’ will still be at the mercy of an elite few that really doesn’t have your interests in mind.

The only way you will ever regain true control is via money that some don’t believe is money at all.

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Cryptos need your trust

The reason cryptocurrencies exist is because of the failures of central banks and governments. The very concept of cryptocurrency is anti-bank, anti-establishment — it’s about trust existing outside of a centralised few.

Is it possible to have more belief and trust in ‘money’ that has no central authority? That’s the most important question we will face in the coming years. The answer will have a significant influence on the real world application of something like bitcoin as money.

Right now there are pockets of society that accept bitcoin as money. They will take it in exchange for goods and services. The bulk of society today does not accept this.

Well…it’s not they don’t accept it, there are many out there that still don’t understand it or even know about it. But the world is a fast changing place. And society is going through a revolution.

It’s a revolution that’s pushing back against central authority. It’s a revolution where people realise the importance of their voice, their influence and their information. But to see the potential and the change that’s coming, you need to understand the revolution taking place.

It’s a social revolution that I think is just starting to get rolling, but will end up in revolt against central authority. And I believe that through cryptocurrencies, like bitcoin, that society has an outlet that strikes right at the heart of these central authorities.

Bitcoin can be — is — a form of money. And I think that its awareness, understanding, strength and value is only going to grow. We’re in a perfect storm of social revolution, geopolitical turmoil, financial uncertainty, and cryptocurrency is the solution that we’ve been looking for.

Money as you know it is changing. Cryptocurrencies are only going to get more prolific, more valuable and more important to everyone. This isn’t a short ride that is about to implode.

This is a revolution that’s only just starting and the biggest gains could actually be still to come. If you’re interested in finding out more, check out my free report detailing the five things you must know to profit from cryptos here.

Regards,

Sam Volkering,
Editor, Secret Crypto Network

Sam Volkering

Sam Volkering is Editor for Money Morning and its small-cap, cryptocurrency and technology expert. Find out what he has to say here with all his latest articles.

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