So What is a Crypto Currency ?
According to Wikipedia —
A cryptocurrency (or crypto currency) is a medium of exchange using cryptography to secure the transactions and to control the creation of new units.[1] Cryptocurrencies are a subset of alternative currencies or specifically of digital currencies. The first cryptocurrency to be created wasBitcoin in 2009.[dubious ] Since then, numerous cryptocurrencies have been created. A feature that is typical in cryptocurrency is decentralized control, distinct from a centralized electronic money system such as PayPal. Another common feature is that transactions are publicly recorded in a ledger. An example is Bitcoin, where all transactions are recorded in the block chain.
As we see from the definition above, Bitcoin was the first in this experiment with Cryptocurriencies, established in 2009 so we are in the 5th significant anniversary of Bitcoin, but for the most part, Bitcoin has been a vehicle for “Currency Trading” rather that actually being used “For Trading” on the Internet !!
What these genre of cryptocurrencies are doomed to fail is because of their “Rebellious Streak” against the real world currencies control exercised by the “Central Banks”, But using a statistical measure to allow the currency to adjust itself in through the process of currency trades, is yet to be adopted in a single real world currency !!
If we are going to do the Cryptocurrency bit right, we would need to follow the tried and tested Central Banks model. It is but just a mere rebellion against the Central Bank model seems more like an anarchist trend rather than a more logical one IF the Central Banks model has been a cause for failure. It seems that this mechanism of rebellion against the Central Banks is because they do exercise and there is a need for such an Authority to control the illegalities that crop up in the system … a free flowing statistical system is not built with the Intelligence to “Police the Illegalities” and hence one of the functions is this form of control exercised by the Central Banks.
The Central Banks model has been existing through generations and generations and while a few dissent it and set off probably on the wrong path to take the initiative of the Bitcoin, in this rebellious trend … it is perhaps this reason why Bitcoin and the others have been simply lagging behind after 5 years of existence to be accepted as a Trading unit in the so prolific Internet Commerce.
Internet Commerce has blossomed like he most abundant crop that there ever was on this Planet !! and yes it is time to think about a Single Currency that could be used as a nice reflection of the real world currencies in the Cyberspace.
One really good approach would be to use the case study of how the European Union introduced the Euro as a Single Currency and got it quite efficiently to be adopted as a Major currency across first Europe and soon across the Globe. The Euro is a new Currency with the Central Bank control in the European Central Bank — ECB and even an ECB-Network. We also have the Bank of Japan Central Bank with its BOJ Network across the major regions.
In a similar vein, with the success of the Euro, while the controll-less Bitcoin is no where rivalling the success of the adoption and proliferation of the Euro. So I would not be hesitant to make the comparison and say that the Bitcoin model of a controll-less Cryptocurrency is but a Failure, and we need to re-think this implementation for the Cryptocurrencies.
Following the Euro model we need the following to adopt a successful Cryptocurrency —
1. A Central Bank Structure with a Network of branches in the major regions of the Planet — perhaps called the Internet Central Bank.
2. Introduction of a currency that is on par with the real world currencies in its operation and functioning.
3. We need to have perhaps a nice competition to choose a good name for this Internet Currency(IC).
4. This Internet Currency should have units that reflect for example £ 1, £ 5, £ 10 etc in IC 1, Ic 5 IC 10.
5. Like people convert easily as they move from a GBP traded Great Britain, to say Germany and exchange their GBPs for Euros, people should be able to free exchange their Internet Currency with the regional real world currencies.
6. Amazon and other such major Internet Shopping Sites would then be able to adopt the IC and mark their items priced in both the IC and the local currency.
7. We need a facility for people to have Bank like Internet Banks to Store and Barter the IC.
8. We need to think of a different model for execution of the IC, else it should NOT be just like another Currency just an alternative to the GBP or Dollar or Euro.
9. The benefit of the IC should be that it is one Currency for the entire Internet — Transcending Country borders across the Globe.
10. The IC should have a DIGITAL Model, and traded as a DIGITAL Unit rather than a unit like the GBP, Euro or Dollar.
These are just some first cut thoughts of getting a “Cryptocurrency” Model that is real and CAN be put into immediate adoption and get easily accepted !!
The Bitcoin and their Class of Cryptocurrencies after nearly 5 YEARS of Existence are not one bit in widespread USE .. so we can indeed realistically rule the Bitcoin model as a FAILURE to be adopted widely !!
It is because of the FAILURE of the Bitcoins from coming about into widespread acceptance and adoption in the manner of the EURO, that is the most recently introduced Multi-Country Currency Model that is a grand success !! We need to look at the lessons learned from the adoption of the Euro and further improve ont he process and implement the IC as a similar Multi-Country Currency Model.
Cheers,
Brian Antao, Ph.D.
Briancinderella Global Ltd.
http://www.briancinderella.com
http://uk.linkedin.com/in/brianantao
Twitter — @BrianAntao.
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