I’m sharing my analysis of emerging tech and trends here on a weekly basis. As Co-founder and CEO of Agile Soft Systems, I always have my eye on new technologies as they come into the market. Please “follow” me to never miss an article. One way I look at cryptocurrency is that it is an energy guzzler, bigger than the biggest gas guzzlers ever built.
Cryptocurrency is competing directly with everyday human needs like keeping our food, homes, and cars warm or cool. It is competing with transportation costs of all kinds since transportation needs energy. It is competing with every aspect of the industrial world as the world needs energy. It is competing with growing food and the list goes on. The world cannot survive let alone thrive without affordable, readily available energy. Yet, the same world can survive and thrive without cryptocurrency.
If you had a choice, would you rather mine bitcoin or use that energy to cook your food, fuel your vehicle, power your electronics, or keep your dwelling warm? What if that choice was binary, where you can pick only one? Mine crypto or use that energy for your everyday needs?
We are only talking about personal human needs so far. What about the ability to run or energize the military machine, the government, or the healthcare industry? Yes, healthcare is THE industry, it is rising towards the top of the food chain, vying to compete with the military and economy. Would you mine bitcoin or make more military paraphernalia or make more vaccines that generate more money?
While I am saying this, I acknowledge that in the contemporary world, economic strength proxies for the other kind of the ‘usual’ might — the military might. Still, a warhead trumps virtual currency. Mainly, because the world already has currencies and proxies of wealth in gold, oil, and other commodities.
Remove cryptocurrency from the equation (magic wand anyone?) and keep a secure, distributed ledger of immutable transactions aka blockchain. That is something the world can live with. Remove the use case of cryptocurrency mining and its monetization for the sake of it. Rather, focus on the security of the transaction chain, its distributive nature, and the fact that it is not an energy hog. Then you will have something that can benefit business processes across a wide spectrum of the worldwide economy.
That will be the ultimate use of the blockchain technology.