What’s up guys. This is me with another post about CyClean and blockchain in general. Even though I am a member of the CyClean team, I don’t like to see people investing in cryptocurrencies without really learning about blockchain technology. When you put money in an asset that you don’t really know about, it is not an investment, but it is speculation. This is why the CyClean team is working hard right now to inform many people about blockchain technology in general. Today, I am going to talk about how blockchain can function as a currency.
What is a Currency?
As you guys know already, Bitcoin is the first application of blockchain. Even though blockchain technologies can be used in many fields, it is important to understand why the first application of blockchain is a currency. What we use as money today are just pieces of paper. The only difference between paper and money is that money is the paper backed by legal proclamation, while paper is not. Nowadays, money is produced by centralized institutions like central banks around the world. However, this is not the way it was. Money, for more than 2000 years, used to be a commodity, such as gold and silver. People chose gold and silver as currencies because they are decentralized, and no government can produce them.
Now, let’s go back to Bitcoin. Satoshi Nakamoto, the creator of Bitcoin, decided to create Bitcoin because he was worried about dollars and many other centralized currencies causing unstable business cycles. Satoshi was aware that the 2008 financial
crisis occurred because of centralized monetary policies of the United States. He strongly felt that decentralized money is needed not just in the U.S. but around the world. That is why he created a decentralized and denationalized currency called Bitcoin.
A Decentralized Currency?
Blockchain is innately decentralized. This is the core characteristic of blockchain. Thus, blockchain is the best tool to create digital currencies. Since it is nearly impossible to hack the information on blockchain, it is impossible to counterfeit blockchain-based currencies as well. This is why many economists from the Austrian School are hyped about Bitcoin. Can Bitcoin be a money? I’m not sure, because Bitcoin itself contains its own problems like slow transaction speeds and high transaction fees. Can blockchain based currencies be money? Definitely.
We do not know if cryptocurrencies will serve as currencies in the future. They definitely have the potential to function as decentralized currencies. CyClean makes use of this technology to create the CyClean token, which in a sense can be used as a currency to rent CyClean products. It seems like we are drawing closer to a time of cryptocurrencies functioning as currencies.
Thank you for reading, and I hope we helped you understand more about blockchain technology today.
[ For more information about CyClean, please visit our website at cyclean.io ]
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