IS CRYPTOCURRENCY THE FUTURE?
Unabated curiosity leading to a forward movement from the current realities across many walks of life has led to a rising urgency in a need to begin the future today. A gradual process of change over the years has succeeded in defining yesterday’s excellence as today’s mediocrity. In all, an emphasis on the continuous need to forge ahead to an unending future has been a recurrent decimal in the transient journey of man. The urgency to bring the future today has witnessed a spread to the confines of various industries, including but not limited to transportation, sports, media, medical sciences, and education. As it relates to finance, limitless possibilities have been envisioned within the industry. Endeavors and frantic researches dedicated to making financial activities both seamless and profitable have taken the lead in the journey to realizing a stabilized financial future in Africa and the global economic landscape in general.
The adjoining line between cryptocurrencies and the future is in fact, undebatable. The future will come to feature the numerous advantages of cryptocurrencies with an emphasis on their highly decentralized nature built on public ledgers.
The current trends within the finance industry have shown that indeed, crypto is the future of finance. According to research conducted by Chainalysis, a notice issued by the Central Bank of Kenya in 2015 warning against trading Bitcoin owing to the ‘speculative nature of virtual currencies’ have since then, witnessed a 7% loss in the value of Kenyan Shillings (KES) and a rise of over 11,000% in the price of Bitcoin.
The Central Bank of Nigeria (CBN) made similar edicts, banning all banks in 2017 from using, holding, trading, and transacting in cryptocurrencies. Predictably, its currency Naira (NGN) dropped by nearly 52% in the meantime.
In this regard, the destabilization of the barter system by monetization has been perceived as a passing development that’ll come to reveal the numerous advantages of crypto with the lapse of time. The disruption of a phase to begin another will not be without challenges, however, the problem of regulation and use, particularly owing to the decentralized nature of the blockchain technology will come to be accepted as seen in the decision of El Salvador in accepting Bitcoin as a legal tender.
In the words of Raghuram Rajan, former Reserve Bank of India governor, Cryptocurrencies have a potential future and even though they have fluctuating values, these digital assets might find a way to become an effective means of payment. The ensuing advantages of cryptocurrencies that will define the future of finance include:
Easy transactions: It de-emphasizes the need for a middle man. Transactions take place under a peer-to-peer system founded on a secure network without cumbersome paperwork.
Decentralization: The database that has crypto transaction records will be managed by blockchain technology. The decentralization would involve only two parties in the transaction, i.e., the sender and receiver without a governing central bank as an intermediary.
Strong security: When transactions are performed in cryptocurrency, they cannot be reversed. There is a reliable encryption technique used throughout the cryptocurrency transaction process to protect from hackers and tampering with the information within the system.
The numerous advantages of cryptocurrency will extend to utility, gaming, transport, education, etc. The Afridex model, in playing a crucial role in this journey to the future, has developed a community serving ecosystem directed to extending the numerous advantages of cryptocurrency to the daily activities of man. The Afridex Exchange, Afridex Payment Solution, Afridex Eduxtra, Afridex Finance, Afridex Smart Chain, and Afridex NFT Market Place have been set up to deploy blockchain solutions in solving the hydra-headed challenges of Finance and other relative aspects of human activities.
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