As technology evolved, so did the currency, we went from bargaining to notes and now to cryptocurrency. Each one of them being a disruptive innovation, changing the landscape of business and technology. Bargaining utilizes the relationship between two individuals, notes utilizes a central network in a party, and cryptocurrency utilizes the internet technology that allows for the decentralization of a network. In the recent years, there has been many new releases of cryptocurrencies, basing off the technology of Blockchain, with the most well known being Bitcoin. People are no longer restraint to the notes issued by the governments, and no longer in need of having a bank to handle the transactions.
(Block Chain, Geralt)
Just recently, the Bank of China banned the usage of cryptocurrency, and other countries like the USA may not have banned it, but is also unsupportive. The choice of banning the currency is stemmed from the lack of knowledge of the technology, and in consequence its security concerns and lack of regulation.
I believe this ban and reaction from the governments are temporary, and is their way of recognizing that they do not comprehend the technology and only after further analysis, could it be proceeded. Despite these restrictions, the dividends of Bitcoins are on a steady increase, commonly seen as a conservative option. This action puzzles me, as I would have assumed the governments’ actions would be seen as more serious by the general public, and is more influential on people’s decisions. This result is a clear indication on the powers of globalization, and how the Internet has changed people. Even if the value of cryptocurrency may be zero in China, people have the realization that it is still worth hundreds and thousands in foreign countries.
Bitcoin Price, Bitcoin.com
Just recently at the largest hackathon in Canada, Hack the North, Blockchain released a challenge for for the students in creating the best application of Blockchain technology. Despite being in the competition and placing as a finalist, I am still very unfamiliar with Blockchain. Just like the governments and financial personnels, it is very difficult to understand and be able to implement the technology without serious studies. Therefore, I am able to relate with the officials’ anxieties towards the new currency. The governments are unable to react as fast as the industry, leaving them behind in the creation of new laws and regulations. Though I agree with the government’s attempt in unnaturally restraining the development of this new disruptive innovation, but I do not believe it is possible. It is difficult for a government to sway the people’s preferences, and impossible for a democratic government. Therefore I would suggest for a great attempt in adapting to the new system.