I recently attended the Crypto Valley Summit on the Isle of Man. It meant my daily drive in to Douglas was 10 minutes longer than I’ve come to expect but all in all, attendance for me was relatively simple.
I was surprised, impressed (even a little embarrassed!) by the distance covered by some of my fellow audience members, and many of the speakers, in comparison.
There were attendees from all over the world, all eager to learn and share their views on what they considered the next big thing, the future.
What it is
Crypto is a new idea, a new concept, a new method of transacting with each other. It’s finding its way in to the mainstream via digital currencies, but it can, and most likely will, be much more to us than that, in time to come.
If you’re reading this, you will almost certainly have heard of Bit-coin, and most likely some of the other larger crypto currencies, currently floating around various hard drives and virtual wallets all over the world.
In my experience the term crypto has come to refer to all of these crypto currencies, as you may expect, but also the concept of the block chain.
The block chain is a process, used by Bit-coin amongst others, which provides a new way of doing things, of doing business. It’s a new concept which will in turn spawn new ideas as tomorrow’s entrepreneurs learn how it works and how to exploit it.
The Crypto Valley Summit was a great event to showcase the excitement building around this new technology, and some of those ideas.
Much of the attention on crypto to date has been on the digital currencies (and for the average man on the street it may be the only part of it some of us see, at least for the time being) but it is important to note that crypto is more than just a digital currency, it’s a new way of doing things.
What it isn’t
Crypto it isn’t just a digital currency though, nor is it a replacement for Fiat. Not yet anyway!
It has its attractions; reduced charge backs, less risk of fraud and no international exchange rates, lending itself nicely to the on-line marketplace. Where international barriers are already being blurred, it seems to make sense that there should be a method of trading that reflects the modern marketplace many of us deal in.
While some may conclude that the growing popularity of crypto currencies has been brought on by the current mistrust and high levels of due diligence being forced upon their customers by the high street banks, it is not a way of avoiding the existing banking system altogether. You could not survive on crypto alone, not yet, and so you need a way to convert your digital currency back in to Fiat, you need the banks to play ball.
It, therefore, isn’t a way for criminals to circumvent current money laundering legislation. Crypto currency is in fact a much more secure form of currency than cash, which, I understand, remains a favourite of those the wrong side of the law.
Why we care
I’ve already used the words ‘not yet’ multiple times in this article and I’m not finished with them, not yet!
I refer again to the Crypto Valley Summit on the Isle of Man and conversations I’ve had subsequent, and there are very few who don’t see crypto taking off.
Certainly digital currencies are well on their way, now being accepted in some high street stores as well as on-line, and now that the technology exists more and more will exploit the benefits.
It wasn’t too long ago I thought mobile phones had advanced as much as they possibly could, and look at them now. If you thought that there was no way to use technology to advance the way we transact with each other, think again.
So it appears to me the success of crypto is inevitable, and why not? I rarely carry cash these days, preferring to transact with cards, be it debit or credit, and using on-line facilities. Even our office is paperless! Why not have a completely digital currency?
The crypto concept has a growing number of followers and in this age of Facebook, Twitter, Amazon and eBay it will only continue to grow.
The challenges
There will be several, not least of all banking. Whether the current banking system sees digital currencies as a rival I couldn’t possibly say, but again crypto is not a replacement for Fiat and you couldn’t (yet) live off crypto alone.
I’ve also heard comments that Governments won’t like it as they lose control of quantitative easing and if there are two areas you want onside to ensure the success of an emerging industry, it’s banks and Governments.
There will also be learning and age barriers. I’m quite at home logging in to my bank account on my mobile phone and transferring funds but this is not the case for everyone.
Some will not like the idea of not being able to physically hold their assets. Creating physical coins to house digital ‘coins’ is a nifty way around this problem, but does it complicate using them? If so, what’s the point?
Each generation is more e-friendly than the last and this attitude will disappear in time, but not yet.
Certain events have already arisen which give credence to those who question the legitimacy of crypto. Although the risk is far less than that of cash, headlines and reputations are tough to forget and difficult to overcome when you’re just starting out.
The Isle of Man, which is widely acknowledged as a well regulated international business centre, is positively looking to inspire consumer confidence in crypto.
Its positive stance is already impressing those involved in the industry and I genuinely hope the Government’s efforts will continue to be recognised and that the crypto community will maintain its interest in what the Island can offer.
More than welcoming crypto with open arms, the Island is going out of its way to assist the development of the industry and, following the success of e-gaming on the Island, our IT infrastructure is now well suited, and prepared, for a crypto revolution.
And to finish
I started this article by explaining how crypto is more than just a digital currency. I admit along the way I’ve been distracted by the advantages, pitfalls and challenges of digital currency but, for the time being, this is where we begin our journey as a society in to the crypto world.
Much of the above is my opinion, from reading about crypto, attending the conference and from interesting snippets of conversations I’ve had or even overheard. I don’t consider myself an expert, not even close, but refreshingly it seems very few do at this embryonic stage of what could be a world changing development. Everyone is willing to admit that they are still learning about the possibilities that are being opened to us and now is the perfect time to become involved.
It’s certainly an exciting time and I am thrilled to be able to involve myself in a work capacity.
I write the above as an expression of my excitement and my enthusiasm in this area. My hope is that it will generate discussion! Each day I’m learning about new things and I thank all of those who’ve taken the time to speak with me about what they’re up to.