I outline in this report 2 reasons why cryptocurrencies are our future:
- 1 - AI will not function at its greatest potential on our current monetary system and
- 2 - Cryptocurrency cannot be destroyed through loans as current fiat money is through repayment of debt via loans
1) AI Will Be at the Forefront of Crypto Revolution
Artificial Intelligence (AI) uses "intelligence" through algorithms and data to learn as and become a machine that can interact with humans. As AI advances, these machines are learning more and more deeply how to mimic human behavior such as decision making and predictions.
In a near future world, these machines will be performing human everyday tasks more and more. These tasks, to name a few simple ones, include things such as:
- Buying groceries
- Making deliveries
- Paying bills
- Cleaning streets
- Building products
As you can see, these are all tasks that include payment through regular money systems such as credit card and such. These payments all rely on human interactions, such as bank tellers, credit card companies, etc. Because AI will become an autonomous system in the near future, there will always be a search to make it more efficient and seamless.
AI will be optimized through the use of digital currency in exchange for rapid and efficient performance of tasks.
2) Cryptocurrency Solves a Major Problem Facing Monetary Systems
Today, whenever a bank makes a loan it makes a deposit in a the person's account thus creating money. Instead of a bank using deposits from families and individuals, the banks create money out of thin air because of the interest rate and asset purchasing policies of central banks.
In the old days, money creation was through household deposits such as gold and silver. Their "money" was tender for their deposit and was legally recognized as so. Today, those deposits have been largely expanded through commercial banks. The central banks allow for banks to create money and lend it out many times the amount they hold in deposits.
When an individual takes out a first loan that is based on the fraction of what is really held in the bank, then takes a second loan to pay the first, that money effectively disappears, yet stays in the money supply through so called repayment.
Because cryptocurrency is based on a blockchain, it is impossible to create fake money. All money is based on proof-of-work or proof-of-stake, meaning it is always based on something and cannot be printed as is done by advantage-taking banking systems.
What is your opinion on the future of monetary systems?