Visionary on Cryptocurrency of the Future


Read the first part here!

So where is this all going?  Last week I travelled on the TGV from Bordeaux to Paris. The journey itself was unremarkable, apart from the speed – sometimes approaching 220mph with hardly a bump.  But in essence the mechanism of the transit infrastructure (train track, signaling, etc.) has been in place for more than half a century. However, the consumer experience of planning/undertaking the trip certainly wouldn’t have been conceivable to anyone 50 years ago, and demonstrates just how far technology has come in the last decade alone.  Because it is the introduction of mobile internet applications and the transmission/verification of trusted digital data that lies at the core of this advance.

To explain this further, I purchased my eTicket over the internet, receiving a confirmation email within seconds allocating me a numbered seat and specific carriage.  When the ticket inspector arrived I was able to open the email on my phone using the trains Wi-Fi, show him the QR-code on the screen, which he scanned with his hand-held device, and so verified both the validity of the purchase and also that the seat number of the train I was travelling on was indeed allocated to me.

Could this have been done only 10 years ago?  No. And where will we be in another 10 years?  Who knows, but the continual rise of ever more powerful computing capability, with mobile technologies and digital verification applications is extremely potent, and soon this will be combined with what is often referred to as the synchronicity of convergence that is building with the ”Internet of Things”.  When you couple this with the possibility of autonomy of action by applications that will be built on Blockchain technologies that require no oversight or human intervention – then a true ‘future world of robot machines’ suddenly doesn’t look so far away.

Bots instead of traders

Now FX professionals don’t need to be told that instantaneous digital validating of trades is a massive part of your business today. But the implications to your business model of the new Blockchain technologies may well be extremely disruptive. It will not just be secure peer-to-peer value transfers, using bitcoin and the Blockchain, which will eat into your trade. It will be the real possibility of the rise of autonomous algorithmic programmable trading bots that will trade between themselves, utilizing the validation of the Blockchain, without the need for any real-time oversight by humans.

In a business environment that strives for efficiency and low costs, there is nothing more efficient than a programmable machine. In a world of globally competing autonomous trading those that have the least friction and lowest costs will triumph. Bitcoin transmission already offers considerable low-cost advantages over the current traditional exchanges between different currency unit accounts. Once this starts to be used by autonomous machines, the possibilities are mind-blowing. Imagine value proportions proposed by, say your refrigerator, which has the power not only to order its own ‘top up’, but can use its bargaining power of digital secure payments without human intervention to achieve the most efficient delivery of new foods, etc. Driverless cars, in the cities of the next century will not only program their own routes, by ‘talking’ to other vehicles and assessing the route of least resistance, but will be able to ‘trade off’ between each other. Suggesting to another autonomous vehicle that it might like to slow down and free up a route, in exchange for a digital instantaneous payment, individual ‘agreed contracts’, that their algorithms will negotiate to achieve the desired optimum result.

The future is already here

There have been volumes of Science Fiction visions about Future New Worlds, most of which require the reader to imagine an invention/process yet to be discovered (teleportation, hyper-drive motors, cryogenic re-birth, etc.). But the ability to define ‘contracts’ (whether these are financial or socio-political) that are backed by incorruptible, time-stamped verification has now actually arrived with the decentralized distributed ledger of the Blockchain innovation.

To conclude: It is certainly incredibly hard to try and ‘value’ a bitcoin in pure monetary terms. It is indisputable that they are the required ‘reward’ to miners and nodes that drive the Blockchain and ensures that the distributed ledger continues to grow and function efficiently. That is where their true value lies. I do agree that, at this moment in time, bitcoin is not a traditional currency in the classic definition, and may never actually become one. But bitcoin, or a ‘child of bitcoin’ in some form will undoubtedly be the oil that lubricates the smooth running wheels of the new commerce of Blockchain Applications that are coming in the Future Internet of the New Machine Age.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage, 30% margin call, 0.01 lot minimum transaction size with no maximum — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Cryptocurrencies

Market Analysis: Bitcoin Surpasses $40,000 Per Coin BTC/USD Analysis: New High for the Year Shows Bulls Are Indecisive Market Analysis: Results of Black Friday in Financial Markets BTC/USD Analysis: Bulls Preparing New Assault on 37,500 Level? BTC/USD Analysis: Bears Aggressively Defending 37,500 Level

Latest articles


5 Stocks To Consider in December 2023

As we approach the curtain call for 2023, it's time to reflect on a year filled with market-shaping events. From the resurrection of tech stocks to the fall of financial institutions, the capital markets sector has been anything but dull.


Market Analysis: Bitcoin Surpasses $40,000 Per Coin

December begins extremely optimistically for the cryptocurrency market, resembling: → December 2020, when bitcoin grew by 46.9%; → December 2017, when bitcoin grew by 38.9%; → December 2016, when bitcoin grew by 30.8%. If there are psychological patterns in the

Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Weakens after Fed Chairman's Comments

Today, investors are assessing the speech of US Federal Reserve Chairman Jerome Powell, who indicated that the interest rate is currently at a restrictive level, but the regulator allows for the possibility of another increase if necessary. The manufacturing business

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.