This article was first published on PIVX
When I think about the future of money, it can be fun to imagine a world that runs purely on Bitcoin. Each time you buy a book or get paid, units of Bitcoin will move from address to address in the blink of an eye. But is this really the best scenario for the future of the world economy?
In my opinion, no. And that’s not saying anything against Bitcoin, either. I think Bitcoin is great. Instead, putting all of the world’s economic value onto a single blockchain is risky, and could have a number of unintended side effects. I also don’t believe that fiat currencies will disappear completely. That would only happen if countries, as we know them today, ceased to exist.
In a future where cryptocurrency payments are ubiquitous, how will we reconcile differences between these disparate networks and means of payment? How will PIVX fit in?
There will never be a single unified world currency
Money as we know it is a strange thing. It seems to defy logic, and yet it can generally fulfill our need for liquid value. Any form of money has no value, intrinsically. You can’t eat a dollar bill, and you can’t build a sturdy house out of stacks of euros. Obviously, the same can be said for any of the thousands of cryptocurrencies on the markets today, too.
We value these forms of money because they have reached a critical point where we can all agree on what they represent and what can be exchanged for them.
But not all currencies are created equal. Some may have too high of a value, and thus, too low of a resolution. It’s entirely possible that with a fully connected global economy, transactions that would be valued at less than 1/1000th of ...
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