Blockchain and cryptocurrencies, more than instruments of speculation

josevas217 (79)modin Project HOPE • last month

Hello friends of Project HOPE, I wish you all a great weekend. Today I would like to share my opinion regarding an issue that needs to be addressed, regarding our behavior as people who are in constant contact with cryptocurrencies. In particular, I always think that cryptocurrencies are More than a Speculative Instrument, and it is something that seems not to be very clear to everyone.

They are often perceived only as speculative instruments, that is, financial assets that people buy in the hope that their value will increase. However, cryptocurrencies are much more than that. Behind its volatility and interest in making quick profits, there is a revolutionary technology with the potential to transform multiple aspects of our daily lives, don't you think?

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There are many things that can be done with cryptocurrencies, and without a doubt, it is the process that is being established, we are going to see some use cases, beyond speculation.

Asset Tokenization

To begin with, cryptocurrencies allow the tokenization of assets. What does this mean? Basically, any asset can be digitally represented by a token on a blockchain. This is not limited to money or securities; It can include real estate, works of art, and even intellectual property. Tokenization facilitates the fractionation of these assets, allowing more people to invest in them in an accessible and secure way. Imagine being able to buy a fraction of a famous work of art or a small part of a property in another country. Tokenization democratizes investment, opening new opportunities for everyone.

Smart Contracts

Another of the most innovative applications of cryptocurrencies are smart contracts. A smart contract is a program that runs automatically when certain predefined conditions are met. These contracts are hosted on a blockchain, which guarantees their immutability and transparency. How can they be used? The possibilities are almost endless: from automating payments in a supply chain, to copyright management, to the execution of purchase-sale agreements without the need for intermediaries.

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Technology Behind: Blockchain

The underlying technology of cryptocurrencies, blockchain, is another area with vast potential. A blockchain is a decentralized and distributed digital ledger that guarantees the integrity and transparency of information. Beyond finance, this technology can be applied in various fields. In healthcare, for example, it can ensure that medical records are accurate and accessible only by authorized people. In public administration, it can increase transparency and reduce corruption by creating immutable records of government transactions.

And these are just simple examples to demonstrate that cryptocurrencies are much more than a simple speculative instrument. In my opinion, they represent a technological revolution with applications that can transform entire sectors of our society. Asset tokenization, smart contracts, and blockchain technology are just some of the ways cryptocurrencies can provide real value beyond speculation. I would like to know what you think about it, I read them in the comments.