It is great that digital currencies are taking banking to a new age. We are going from wiring money in days to just seconds and that is a great leap forward. No more asking for permission to have access to your own money and no more insane fees either. Banking as we know it will never be the same, thanks to bitcoin, ripple, nxt and all the brave souls that decided to push our digital generation through digital values, a step forward.
What about the current financial system? What about going from boom to bust every seven to ten years? Who is going to make sure that my Fluffycoin, Purplycoin or Lulucoin is going to preserve its buying power?
While digital and crypto currencies are changing Financial Technology (FinTech), most of them are trying to preserve the status quo by creating values out of thin air. It will be no different that when federal banks do it; the bubble will burst and many will get hurt, financially. It is as if we are in a war and instead of finding peace, we believe that upgrading our weapons will be the solution. Yes, sure, the side with the biggest guns will win the war, but that means that there is one side that is left hurting. Just like with the current financial system; every time there is a bubble, many are left broke but many end up wealthier. Money does not evaporate, it exchanges hands.
The temptation of wealth is just too irresistible, so irresistible in fact that we don't care to ask ourselves "where is the value coming from"? We just follow the mania and become another euphoric node in whatever network is promising us great returns. There are over 450 digital currencies available today with a collective market cap that tops six billion US dollars, yet less than 10 of these currencies could justify their value. Bubble anyone?
What will you be holding in your digital wallet when the bubble bursts? If you ask yourself "Where is the value coming from?" you might have a couple of XNF coins.
Change is needed, not technical ones but fundamental.
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