Opinion Cryptocurrency Benefits for the Coming Decade

Cryptocurrency Benefits for the Coming Decade

June 11, 2022

The global society is presently in a state of growing turmoil. What began with climate change on a planetary level that is growingly evident to everyone gave way to a huge pandemic. The same then gave way to the ongoing conflict between Ukraine and Russia, the biggest war in Europe since WW2. That war is now grinding away not just at Ukraine and the Russian army, but also at the global economy, which is steadily sliding into a recession. Making things worse is the fact that this is happening in the Fake News era and there is a strong chance that any of these topics get so diluted in the public discourse that any meaningful action is rendered almost impossible. 

That applies to all parts of the globe and all nations, no matter what their systems of governance might be. Yet, even with the public unsure of what is happening or what to do about it, the issues that the world faces are very much a daily reality. These are all challenges that are not only influencing the present day but also the coming years and decades. In that dangerous mix of difficulties that the global and interconnected world is facing, cryptocurrencies could play an increasingly important role. From humble beginnings, they could change many processes for the better and help secure not only the stability of the present systems but also improve them so that they can evolve into something better. 

Legacy Institutions

The concept of a government represents the very core of any society. Regardless of their form of organization or political leaning, a government is there to guide a country and resolve its problems for the betterment of all citizens. However, many institutions inside of these governments, on practically all levels are now what could be labeled as legacy organizations. This means that they came up in a very different world and potentially do not have the means of resolving the very modern problems they are regularly facing. Instead of being equipped to handle them, legacy institutions do tackle them at least in theory. 

But, because of their lack of actual means of resolving these problems, they only get bogged down in endless processes. To try to fix these predicaments, governments only spend more money and involve more legacy institutions. Together, they yet again fail to resolve anything and just keep at the process for appearance’s sake. These can be labeled as coordination failures. But, crypto and things like Web 3.0 services stand a chance of making that a thing of the past. Like they kick-started a revolution in domains of esports and social media, crypto, and blockchain technology can change legacy institutions for the better as well. 

Challenges for Humanity

The key element in the process of addressing these issues with the legacy institution is to understand the nature of the challenges that lay ahead or are here now. These are not pressing upon humanity because it lacks direct solutions, ideas, or data. Instead, the risks are mainly in the area of not having the means to address these in a globally coordinated way. For example, solar panels are a clear solution for energy dependency that is tied to fossil fuels. Covering just 50 percent of all the roofs in the world would generate all the electricity that the planet needs right now. 

But, in reality, covering 10 percent in almost any nation is a huge challenge. The same applies to almost any other domain. Groups do come together with the purpose of overcoming a challenge on a larger scale, but these often then clash with each other and get into similar problems. In the end, the same reverted to a form of a legacy institution where things are being done and money is spent, but the problem at the core of it all still persists. 

Regenerative Ecosystems 

One of the main juxtapositions to legacy institutions comes from the blockchain domain and it takes the form of a regenerative system. These, especially when in the form of regenerative cryptocurrency and economic systems, can satisfy many human needs and still stay positive in terms of net investment. They are also able to balance the needs of the system with the investment it takes in. Gitcoin is a model that employs this philosophy, as well as bitcoin and other cryptocurrencies, and so far it has already created many platforms, like the FOSS, open-source software for the generation of wealth and productivity. It is able to do that but also funnels some resources back into Gitcoin. 

That is achieved through design and its inherent economic incentives, but also the ability of the system to act as a rallying point for organizing and fundraising. Many of these phases were not part of the original plan, but are able to bend and flex to the needs of the users and the system itself. Legacy systems can adapt as well, but only through huge centralized processes that are anyone’s guess in what they might end up in. Usually, they do not succeed in addressing even a small percentage of the issues that they need to correct.

Variability and Volatility

Value systems and regenerative setups are by no means perfect. Their adaptability can often stray way outside of the path that a big part of users wants to see progress forward. Also, the governance sub-systems they use can get bogged down in Byzantine administration, which makes many of these DAO setups look eerily familiar to legacy institutions. However, the possibility of quick and effective evolution still exists. 

That is the ultimate promise of these networks and the communities they generate around themselves. These go beyond national borders, financial stratospheres, and any other issue that influences other mechanisms of global interactions. Regenerative systems are able to bring people together, give them purpose and means, but also keep themselves afloat and functioning in a sustainable manner. It is hard to say whether or not this will save the world from its numerous issues. However, in the worst-case scenario, these can most definitely help.