Why the Future Belongs to Cryptocurrencies and Cryptocurrency ATMs Part 1

Why the Future Belongs to Cryptocurrencies and Cryptocurrency ATMs Part 1

Freedom on Cryptocurrency Networks Part 1

If you think about your interactions with the government and many of the business, you will realize that a simple app can replace them easily and be much more effective in what it does. For example, the entire process of applying for a driver license or renewing a driver license could become electronic. Many other processes can also become fully electronic, including business applications for all kinds of licenses and permits, updating records about real estate, and more.  This is exactly what will be happening in the next several decades.

The reason why many government agencies still exist and why many people still have their jobs today is not because of the value of the jobs, but because of politics, unions, and other factors that have nothing to do with the jobs or the value that the people and services provide to the marketplace. One of examples of such agencies is United States Postal Service. The service is losing money every year and exists only because of the government subsidies. At the same time, companies such as FedEx, UPS and others make money because they figured out how they can serve their customers better and provide service that competes not based on price, but based on other factors, such as customer service, speed of delivery, and more.

To this day, the government was able to regulate what has been happening in the marketplace because it was able to put itself in the middle of the financial transactions between people.  Even today governments print money and governments collect taxes, which means that people use currencies created by the government and then submit reports about how they use the currency in the form of their tax returns.

Cryptocurrencies can significantly change how the world operates because they are built on the principles of freedom, decentralization, and independence.

 

Freedom on the blockchain networks

Nobody on the Bitcoin network is making anybody else do anything. The network exists because users choose to transact on the network. Compared to regular currencies, cryptocurrencies provide users with a number of benefits.

It is possible to send funds in Bitcoin or some other cryptocurrency from anywhere in the world to anywhere else in the world without having to ask for government permission no matter how much money a person is sending. This is simply not how the things work with the governments and regular banks. When dealing with traditional financial institutions, people often have to submit all kinds of paperwork and proofs about the origin of the money before sending the money. The fees may also vary depending on how much money a person wants to send. None of these issues exist with Bitcoin and other cryptocurrencies.

It is you who is choosing how much you are going to pay in transaction fees and how much money you are going to send. The networks operate is a frictionless way.

Most of the Bitcoin ATMs today do impose restrictions on their customers when it comes to how much cryptocurrency people can buy, but these restrictions have nothing to do with cryptocurrencies themselves. Restrictions are in place because in many areas Bitcoin ATM operators have to register their businesses as money transmitters and comply with all the regulations that governments have for money transmitters.

 

One of the biggest innovations of the Bitcoin network was that it was able to solve the problem of double spending, which is when a user on a digital financial network tries to send funds to several parties at the same time pretending that he or she is only sending them to one party.

The network has solved the issue by recording all the transactions on the blockchain. On the Bitcoin network, miners compile transactions into blocks of the blockchain and seal the blocks with cryptography hashes. This process makes the data on the network impossible to delete or edit.

Just like users who choose to transact on the networks, miners also participate in the operation of the network purely out of their free will. Today, most miners choose to participate in the process of block creation because of the financial incentives.

The Bitcoin network rewards the miners for creating the blocks of the blockchain by giving them rewards for every block that they create. This is how the Bitcoin blockchain adds coins into circulation.

The total number of coins that the Bitcoin network can have is twenty one million.

For the first 210,000 blocks of the Bitcoin network, the reward from creating the blocks of the blockchain has been 50 bitcoins per block. Then, the reward divided in half and became 25 bitcoins per block. If you are reading this article before 2020, the reward is 12.5 bitcoins per block. Approximately in 2020, the reward is going to divide again and will become equal to 6.25 bitcoins per block. All of this means that out of 21 million of bitcoins that will ever exist, over 17 million are already in circulation. You can see how many coins are in circulation as you are reading this article by visiting http://www.bitcoinblockhalf.com/

The visions of Satoshi Nakamoto has been that once the network adds all the coins, miners will keep creating the blocks of the blockchain because their rewards will be coming in the form of transaction fees and there will be enough transactions on the network for them to do so. Looking at the trajectory of growth for the Bitcoin network since 2007 and all the events that have been happening while the network has been growing, including the appearance of the Bitcoin ATMs and knowledge about cryptocurrencies entering the mainstream consciousness, the vision of Nakamoto for the network once all twenty one million bitcoins are in circulation may very well turn into reality.