Peer to peer

But there is nothing to keep other networks from
developing blockchain-based ledger systems with
their own cryptocurrency. Indeed this has been
happening. Just one year ago, bitcoin comprised
90 per cent of the cryptocurrency market. Now it
is less than half. Competitors have sprung up,
such as ethereum, litecoin, z-coin, and others
ofering initial coin oferings and tokens. The
initial coin ofering mania of 2017 led to $4bn
being raised via this method.

The thousand or so alternatives that have
sprung up are not strictly comparable with
bitcoin in terms of usage. They have
different properties and can
be used for different purposes, ultimately to
enable decentralised applications, which offer a
service, such as payments, ride hailing,
anonymity, or social media, without the need for
a central party to maintain operational control.

As the bitcoin, or cryptocurrency equivalent, is
merely the medium used to enable stakeholders
in the network to participate in the distributed
network, they are sometimes thought of as
cryptoassets rather than cryptocurrencies.

For the unbanked and citizens in parts of the
world with hyperinfated currencies, unstable
governmental rule, and strict capital flow
restrictions, digital, decentralised currencies are a
novel and powerful solution to bootstrapping
financial inclusion and freedom.

To date , no government (ie USA) has come up
with a ‘fedcoin’ that could be globally
accepted as the USD has been. If this were to
happen , then local currencies would cease to
exist , or be radically reduced in size due to
circulation constraints.

Bitcoin , while radical , requires the
infra structure of the internet/mobile telecoms,
in some parts of the world , the internet
is not always “on”. Hence ,
growth and acceptance is assured over
time globally.