- Telecommunications Giant Vodafone Leaves the Libra Association
- Group of Central Banks Assesses Developing Central Bank Digital Currencies
- South Korea Might Impose 20 Percent Tax on Cryptocurrency Profits
- Report: Terrorists Increasingly Use Crypto to Raise Funds Anonymously
- Canadian Securities Administrators Subject Crypto Exchanges to Securities Laws
The past year has not been so great for cryptocurrencies. With most of these digital currencies losing more than half of their highest value, several investors were forced to sell their positions in order to avoid any more loses. The catalyst to this downfall of cryptocurrencies was the slow transaction speeds and the high transaction fees.
Even though these two factors have been largely fixed by the developers, people are still hesitant to start using cryptocurrencies again. Eugene Kaspersky, the Russian cybersecurity expert, shared a few thoughts on the reason behind the failure of cryptocurrencies lately.
A Global Government Is a Necessity for Cryptocurrencies
Eugene Kaspersky feels that a global government is required for cryptocurrencies to succeed. Currently, all the governments around the world are trying to control the financial systems by creating their own centralized fiat currency. However, they are not taking the benefits that cryptocurrencies have to offer into consideration. Unlike fiat currencies, cryptocurrencies are not controlled by any single organization. Thus, giving people the complete power over the funds that they own.
The only downside to cryptocurrencies is that not everyone is aware of the way to use these digital assets. So, instead of discouraging the use of cryptocurrencies, efforts need to be made towards making people aware of this digital asset.
Year of Correction
2017 was a year when all cryptocurrencies were pumped to the maximum, and just when we thought that they were ready to take the place of fiat currencies, a correction that lasted over a year, hit the crypto world.
Bitcoin alone has lost over 72% of its value after nearly clipping the $20,000 mark. Ever since the value started decreasing, it has been a downward spiral for all cryptocurrencies out there. The worst part is that the centralized governments are taking this as an opportunity to completely dub cryptocurrencies as disadvantageous. However, this mere hiccup cannot result in the dissolution of the entire crypto market.
All the governments from around the world are busy gaining control over the financial industry. However, if we look at the bigger picture, cryptocurrencies are going to help get rid of all the financial flaws that exist in the world. Until we have a united, global government that works by collaborating with all the countries of the world, cryptocurrencies will not be able to go mainstream.
Kaspersky’s Bottom Line
The world is not yet ready for the crypto revolution. For cryptocurrencies to exist in this world, there is a need for a united governing body that is not bent upon complete financial control. With the existing smaller governments looking at controlling the financial sector within its borders, the co-existence of a decentralized currency is not possible.
The need for a more collaborative form of government is very high in order for cryptocurrencies to succeed. In the future, when a global government is eventually formed, cryptocurrencies will be a great asset to use as a global currency.