Amid recent talk of mainstream acceptance, Bitcoin and other cryptocurrencies stand on the precipice providing economic independence from private banking institutions.
That is in essence what Bitcoin was created to do back in 2008 when its initial white paper was released. The decentralized virtual currency removed the need for an administrator or bank - through encrypted peer-to-peer transactions recorded on the public ledger known as the Blockchain.
What was small then has completely changed in the space of 10 years. The past fortnight has witnessed the biggest bull run in Bitcoin history, with the price of the virtual currency hitting the $11,000 mark earlier this week.
The increasing value of Bitcoin has not gone unnoticed by mainstream financial institutions. Opinions are widely divided, but the fact that Bitcoin futures are being considered by the likes of the Chicago Mercantile Exchange and the NASDAQ proves that big things are to come in the next few years.
While financial institutions plan to enter the market, the man on the street still view cryptocurrencies as revolutionary technology. By investing and using Bitcoin, Ethereum and other virtual currencies, people are taking power away from banks by using anonymous transactional systems.
Future of finance
However, as the herd comes running, the potential rise in the value of each respective digital currency will no doubt be welcomed.
Speaking to Lee Camp on Redacted Tonight on RT, director of the Public Banking Institute Walter Mcree believes cryptocurrencies offer another avenue for people to invest and store their money, as an alternative to private banking institutions:
“Categorically it’s very exciting because it suggests that there are options to the private capital control we’ve all been under. Bitcoin and the other Blockchain technologies that are emerging are like the complimentary or alt currencies in the past.”
“They certainly represent a way for communities to have their own isolated economic strength.”
Mcree also believes that mainstream interest in cryptocurrencies shows that there will be an adoption by big institutions in the future. However, he questioned the possibility of the likes of Bitcoin challenging the dollar in the years to come:
“It’s exciting prospect, we’ll see how far they’ll get in terms integration into the money markets. I know big banks are certainly looking to have their version of it. I don't think it will be replacing the US Dollar at least right now. I think the Yuan and others things might along the way.”
“By and large Bitcoin and other cryptocurrencies are emerging we are going to see all kinds of variations of it coming up.”