Why Central Banks Don’t Like the Bitcoin Wallet App
The blockchain, which is where all cryptocurrencies reside on, is something that is worrying central banks. The more people who install a bitcoin wallet app, the more people are free from centralized interference. This could affect derivatives, loans, stocks, and all other financial assets. And that, obviously, is something banks aren’t happy about.
The Bitcoin Wallet App Lets You Be Your Own Stockbroker
Essentially, if you download the bitcoin wallet app and use it properly, you can become your own stock broker. One of the reasons why that is possible is because, once you own a bitcoin (or part thereof), you can divided it into smaller pieces. This means you can sell some of your coin, trade with others, invest with some more, and so on.
If you are a business, meanwhile, you could even issue shares in digital currency. Doing so means that you don’t have to pay for the traditional stock exchange or IPO. Indeed, the systems can also be used for a variety of other things in the business world, such as voting on whether or not to use them in the first place. It also stops problems such as the fall of the Lehman Brothers, because it becomes impossible for people to sell shares that they don’t even own.
Plus, digital assets have the potential to overhaul the crowdfunding industry. Take, for instance, Kickstarter, where people can make micro-payments in order to fund products. In return, they get a small memento such as a copy of one of the first products or signed merchandise. If that small memento becomes a digital share or asset, however, then people may decide to invest a whole lot more.
Remember Vitalik Buterin? He recently raised £15 million for the Ethereum Project, which is a new type of block chain technology. Ethereum now supports a range of different programming languages, which means developers are able to create services and products online. This includes such things as chat forums, search platforms, and social media networks, providing an alternative to the giants like Twitter, Facebook, and Google. Currently, Ethereum is focusing on building a voting app, which is done through a community of some 200 people. They are also looking at crowdsourcing platforms, domain registrars, and computer games. Those who maintain the platform earn “ethers” for their time.
Clearly, the block chain could potentially change everything that we do. It will show us new ways of communicating, new ways of banking. We can manage our assets in previously unthinkable manners. Indeed, the only limitation is our own imagination, as shown by the Ethereum community as set up by Vitalik Buterine. Thousands of people are interested in this system and are willing to give up their time to be real change agents. Naturally, banks are very worried about this. But perhaps it is time for them to relinquish the control they have had over the world for hundreds, if not thousands of years, and allow people to have the power once again.