The Crypto Conundrum

To invest or not to invest? That is the question.

- Vishnu Gopal

If there's an invention that has enabled early humans to associate and cooperate, trade and do lively commerce, it's money. Markets flourished when money replaced words & bonds, and coins replaced barter. Trade gave rise to civilizations, and often prevented minor disagreements from escalating to war.

But as Emerson said, "Money often costs too much." Money requires a strong central government. A strong central bank that guarantees that a rupee is worth what a rupee is worth. And when these governments and banks fail—as it recently happened in Greece—you suddenly find out that 40% of the money in your bank account has just disappeared. Or when governments decide to demonetize for the noblest of reasons, you suddenly cannot withdraw your earned money from your own bank account.

There's also privacy: because of digital transactions, several middlemen (like your bank, or Visa/Mastercard) keep track of how much you spend online and what you buy. This seems largely harmless, until your purchase of a racy book, or a ticket to a movie that hurts the sentiment of a fringe group becomes public knowledge. Now, imagine a system of money that does not depend on central bankers for trust. And imagine it's also anonymous, just like how cash used to be. This is the promise (& the stated advantage) of cryptocurrencies.

A BRIEF HISTORY