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This article would take us through a lot of economics' but we would strike the balance by equally looking at bitcoin' the subject of our discussion. The evolution of money and the story of value dates back to thousands of years ago. As soon as people had more than they needed and needed what they do not have at the same time' the barter economy was born. One point that is important to note is that however simplistic it might seem' the barter economy although fraught with its own shortcomings also came with some advantages. The coincidence of want was a problem because Alice for example needed to have what Bob wants' need what Bob has' and at the same time be willing to exchange such an item for a certain amount Bob would be willing to accept. The freedom these parties had' however' was that unlike it is today' there was no central authority present to decide what quantity of what had to be exchanged for a different quantity of another. This was considered a problem and the development of a single and generally agreed criteria resulted in the birth of fiat currency. At first' precious metals were the sole means of exchange. The value of these metals was based on perception. Gold' for example' may well have no value outside of the fact that it looks good and every other person thinks about it in the same way. The growth of empires also affected the evolution of money and the way we think about money today. These had a lot of implications because all types of money that have evolved needed to possess a quality—scarcity. Hence' gold as a currency started to lose sway as the metal was fraught with several shortcomings. If gold is accepted as a medium of exchange and a store of value' the need for constant supply would make it all the more complicated since the metal serves multiple purposes to humankind. The inefficiency of precious metals as currencies which is a direct result of its shortcomings as a medium of exchange led to a swift and desirable shift to paper money. First' producing gold has a marginal cost and following this is the fact that the value of gold has to be ascertained in another way except of course we would recourse to a barter sense where the parties in a transaction have to determine everything all over again. The third is the limited supply of gold meant that the economy would one day outgrow the medium of exchange which poses another difficulty. Paper money came after the era of precious metals and proved to be a better option after they were successfully introduced in China. Central banks could control paper money through the buying and selling of security bills. This at least implied that economic activities could be kept under control. This continued until late in the early 21st century when digital currency started to gain ground. With this development' money was just the same but had an added feature of being equivalent to a change in digits on a computer. With the global financial crisis of 2008' global financial activities ground to a halt. Lehman Brothers and other key players in the US financial market declared bankruptcy. A critical look into this crisis revealed that decisions made by key players and institutions in the global financial sector were to a large extent responsible for the crisis. In response to this' an anonymous person or group of persons under the pseudonym Satoshi Nakamoto introduced a blockchain based cryptocurrency. The system introduced in the bitcoin whitepaper retained all the good qualities of previous currencies. The decentralization in the barter economy' the innovation in digital money' and the store of value in precious metals. Added to this is the fact that the original bitcoin idea foresaw some of its shortcomings. Bitcoin knew about attackers and gave reasons why such attacks would be at least difficult or unreasonable. All these are possible in bitcoin because of the parent blockchain technology which is simply a distributed ledger showing who owns or would own what amount of what defined in bitcoins. The network is secured by a special branch of mathematics known as cryptography. Bitcoin makes nearly everything possible but these also come with some shortfalls. Criminals could find a good hideout in bitcoins anonymous nature' the level of advancement featured in bitcoin means that wide adoption would depend on some level of literacy' and the last problem comes from the difficulty for authorities to regulate its activities adding again to the risk in adoption. Tax evasion would also be quite easy and untraceable. These are the cons of adopting bitcoin. For the problem of criminals' it has been more of attack on exchanges than the cryptocurrency networks. This means that the application of more measures to forestall risks would go a long way. There is a case of a country that has reached a successful resolution in regulating cryptocurrencies. Malta remains the first and only country to have reached that end. The EU the United States' India and Japan are making progress in this direction. Aside from these' bitcoin’s transaction speed of about 10 minutes' this is even faster in newer altcoins. There is indeed more to come even in spite of the current fluctuation and deep lows than ever before reached by bitcoin and the altcoins in the cryptocurrency market. We may be unable to say for example that bitcoin would completely replace fiat currencies because development around the world is uneven. There may' however' be in fact more chances that this would be the case in the offing. As for concerns about what this article really stands on and a possible answer to the question presented by the topic. We would clearly say that there is no other path that is as promising or as progressive as the blockchain and cryptocurrency. Smart contracts in the etherium and EOS blockchains would replace layers Online.io would be a step into the future with a secured internet and IOTA may well become the future of blockchain technology. As a matter of fact' it is clear that cryptocurrency would eventually replace fiat currency' this would take a reasonable time may be decades or even a century' who knows? The future would speak for itself.

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INDUSTRIES


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Paris- la Défense.
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United Kingdom