When the systems of barter were replaced by a monetary system of coinage, it was a fundamental economic shift for the world. It introduced scalability, portability, simplicity and speed into a previously cumbersome and time consuming system.
Not only did this new system speed up transactions, create portability, allow purchasing in smaller more diverse ways, it brought a legion of other positive benefits such as storing wealth, saving for lean times, fairer and more accurate transfers, cross border equivalencies and much more.
However it did come with a price, it also created a store of wealth more concentrated, obvious, accessible and prone to theft. Stealing coins is much easier than making away with a handful of cows and less problematic than stealing magic beans.
This inexorable adoption of money in its various forms, took thousands of years, as it spread throughout the world via trade routes, shipping lanes and later railways and roads.
Imagine the wealth that was created across those centuries for those that controlled transport, mining, printing, monetary and financial systems, security, manufacturing and so many other ancillary systems. For those who adapted and adopted early; who invested in these new groundbreaking systems related to currency, the wealth was incredible.
Now imagine how much more concentrated wealth might have been if those same systems had spread across the world in months and years, rather than centuries. How large the fortunes of those who saw this potential early enough and invested early in what was inevitable.
That is the point we are at again, right now in time with cryptocurrencies. This is a pivotal moment in history and most have not yet seen the inevitable nature of these greener, faster, more secure, systems of financial change. The signs are there, the groundwork laid. These changes have been happening right in front of us for decades and they are starting to accelerate.
We’ve digitized newspapers, letters, photos, music, videos, phone calls, pizza orders and other deliveries, books, television, our location, our fitness regime, our likes and dislikes, advertising, art and the list goes on and on. We are digitzing currency; it’s happening; it’s inevitable.
And never forget, cryptocurrency effectively eliminates the key, fundamental flaw of fiat, it’s concentrated accessibility and obvious vulnerability to theft. Fiat invites theft and increases personal risk, cryptocurrency helps eliminate and reduce both.
Love them or hate them, cryptocurrencies are here to stay. They are the greener financial system the world desperately needs yesterday. As the cataclysmic realisation of how slow we have moved to combat climate change, overtakes every part of human life, as we roll out change in every sector to undo and slow the damage, it is a near certainty that the financial system that underpins it all, will be swept up in that groundswell.
These new currencies provide the next fundamental shift for the backbone of economies, banking systems and world trade. Unlike historical fiat systems, they do not rely on roads, shipping lanes or carriage. They can move currency from one side of the world to the other at the speed of light, cheaper, better, more securely than ever before and they are environmentally more friendly than all of the systems that have preceded them.
This is a time of change, and it is going to happen faster than people realise. It will turn the world upside down and reinvent how currency works. It will speed up trade and business, it will secure transactions from theft, it will grow new and exciting opportunities for those that see the potential early enough. All while reducing our environmental footprint, energy consumption, and without the need for physical transport.
Which Cryptocurrencies Will Lead Us Into The Greener Economic Future?
Bitcoin is an obvious name and has been in the news lately thanks to Elon Musk talking about it’s heavy energy footprint to mine and transact, but how does this compare with an established system of currency such as gold?
Bitcoin is significantly more energy efficient than digging in the ground and hauling a heavy material across the globe for processing or storage. It’s not even in the same ballpark as gold, it’s much better as a store of wealth if we just look at it from an environmental or energy consumption point of view.
And yet, there is not a murmur about the energy footprint of gold, because it is established and embedded in the current economic systems. And consider that there are already next generation cryptocurrencies that are faster, cheaper and orders of magnitude more energy efficient than Bitcoin or any other financial system in existence.
They are also more secure, independent of any one country or economy and decentralised, which can provide true equality and access for everyone on the planet. In fact, they are even ready for our potential next step; the journey into space, providing a secure mechanism for transmission of currency over vast distances, yes even to Mars.
Bitcoin is unlikely to be our future, though it may one day be a store of wealth that rivals gold. However other cryptocurrencies are almost certainly going to lead the way. Two of the contenders currently are XRP (Ripple) and ADA (Cardano) because they tick all of the boxes for speed, scaleability, cost and energy efficiency.
Based on a full year of transacting and mining in 2020, Bitcoin used an estimated 73.12 TWh which is the equivalent to a small nation of around 9 million people. Ripple, comparatively and which also handles far more transactions per year, is faster and cheaper but only used 0.01 TWh, the equivalent of around 1000 people.
Bitcoin may be better than gold, but Ripple and other energy efficient cryptocurrencies are orders of magnitude better again.
So let’s take a closer look at the technical matchup between XRP (Ripple) when compared with BTC (Bitcoin).
It’s not even a competition. If it were a race, Bitcoin is an octogenarian with a bad hip, while Ripple is a world class sprinter.
Perhaps something even better will come along. It’s highly likely that the current projects themselves will be developed, adapted, will grow and improve. Over time they may even be replaced altogether. However right now, the future is very bright for the projects that tick all the boxes.
You might be wondering if DOGE is the next big thing, will it be part of this incredible change? It’s certainly been all over the news, on the internet and even in kids games like Minecraft. Does it solve these issues? Is it faster, more efficient and cost effective?
Sadly no. DOGE is a fork (historical copy) of Litecoin which itself is a spinoff from Bitcoin. DOGE went almost two years without any development as it was an abandoned project due to very real limitations and issues and also due to competitive advantages shown by other projects.
Among those problems, it has significant scaleability issues, and it is also slower and more expensive to transact than both the competitively green projects of cryptocurrency: ADA and XRP.
So what about the energy consumption of DOGE, how does it stack up? This is the key question since that seems to be the barrow that Elon is pushing, along with the DOGE project itself.
Again, it just doesn’t compare. DOGE requires around 0.12KWh per transaction vs XRP which only requires 0.0079 KWh. That means XRP is more than 15 times more energy efficient every single transaction. If we need a cleaner, greener, faster, cheaper cryptocurrency, XRP is looking well setup to lead us into the future and DOGE is looking exactly as it started, a flash in the pan MEME coin.
DOGE may well be improved, may provide benefits and could be one of the currencies that take us into the future. It’s just not one of the best projects to do so. It will mean using a shoe horn to get it to fit the purpose, when there are already other better options.
If it’s not XRP, there are many other excellent, well supported cryptocurrencies that can provide the new greener financial system the world desperately needs.
The moment is almost upon us, and many are set to benefit, profit and be involved in this incredible and exciting change to the worlds financial systems.
Every day you hear about new funds investing in cryptocurrencies, businesses begrudgingly adjusting their portfolios and payment methods so they aren’t left behind.
Personalities like Elon Musk are making front page news weekly, championing one coin over another. The battle is well and truly being waged as the rich scramble to get a piece of the action.
Fortunes are about to be made. People in the know, are already positioning themselves to take advantage at the expense of those who wait and get left behind.
The questions remain: which cryptocurrencies will reign supreme; and who are the early adopters, investors and future fortune makers, taking advantage of this fundamental shift to digitize currency.
It’s already happening, the change has begun, the masses just haven’t caught on yet, but they will…