February 17, 2021 5 min read
Opinions expressed by Entrepreneur contributors are their own.
The usage and issuance of cryptocurrencies is a thorn in the side of central banks and governments. Having the ability to break out of a siloed environment needs to be a basic right for anyone. Entrepreneurs can especially reap the benefits from an all-inclusive financial system, rather than one with boundaries and exclusivity.
Innovation and transformation
While most people see Bitcoin and other cryptocurrencies as a speculative investment, their true value lies elsewhere. Entrepreneurs worldwide have shown an interest in this technology. One experiment conducted in Barcelona resulted in more people helping one another by introducing a virtual currency as a reward concept.
Even though the virtual currency created for this effort had no real value, the concept triggered a mind shift. After rolling it out to nearly 70 countries, the currency continues to motivate people to help others. It is just one example of what this new and innovative technology can trigger without the involvement of governments or banks.
Instead, banks are clearly interested in maintaining their control by issuing domestic virtual currencies. Experiments are taking place in Russia, Japan and other countries in an attempt to keep entrepreneurs and consumers from achieving financial equality.
Related: Is Cryptocurrency Coming Back or Going Away for Good? 6 Experts Weigh In.
The beneficial aspects of cryptocurrency
Several good reasons exist to embrace cryptocurrencies as an entrepreneur. First, it can be used to raise capital or strengthen your brand. Unlike the traditional financial system, cryptocurrencies do not require anyone’s approval. Any entrepreneur can create their own cryptocurrency, which may provide a utility or economic benefit to those who buy it. Depending on these benefits, you may need to adhere to some regulatory compliance. Even then, it is still an essential alternative to dealing with a restricted financial system today.
Second, cryptocurrencies allow for daring entrepreneurs to break free from boundaries imposed upon them by an inefficient system. Intermediary services, providers and other participants introduce their own siloed environments, stifling any entrepreneurial growth. Under the guise of “lending a helping hand,” these brokers and consultants are only there to ensure that you, as an entrepreneur, don’t venture outside their narrowly defined boundaries.
This latter aspect becomes more outspoken when dealing with international clients. As one’s “reach” expands, so does the amount of red tape to circumvent. Our society is fractured and needs to be unified. The current financial and political landscape will never allow for that to happen. Cryptocurrencies, which do not require or need intermediaries, have shown a way to achieve unity and take back power and control.
The power of the free-market
At their core, cryptocurrencies represent free-market money. It is a foreign company, as both banks and governments will dissuade entrepreneurs from getting involved in this “bubble economy” they have no control over whatsoever. This is a strange approach, as state-controlled money has caused a lot of damage on a global scale already. That damage will only be exacerbated in the future, as the current system is unsustainable.
One example is the book by Murray Rothbard, What Has Government Done to Our Money, written in 1963. Nearly 60 years ago, the book depicted a world in which governments effectively stifled growth for consumers and entrepreneurs in favor of siloed organizations, banks and governments. Little has changed since Rothbard wrote the book, and nearly all of its talking points still apply today.
One takeaway from the book is how state-controlled money devalues quickly. The one receiving the money — you, as an entrepreneur — already have far less “power” to wield with this money than those who issue it. As banks keep printing more money, they further erode the value of their currency. It is a vicious cycle that will further decrease any power in the hands of consumers and entrepreneurs.
Breaking free from this scheme will not be easy. It is not something one can achieve by adhering to the playbook and ruleset of power-hungry individuals. Instead, power and control need to be put in the hands of regular people and entrepreneurs. Inequality must be eroded, allowing for the construction of a truly global market.
In 2020, income inequality became even more apparent, particularly in the United States. American households and entrepreneurs struggled to make ends meet, yet publicly traded companies noted strong growth. Playing by artificial rules dictated by centralized organizations will yield this type of outcome. The time has come to not just level the playing field, but to create an entirely new playing field.
Related: Everything You Need to Know About Cryptocurrency’s Next Big Thing: Decentralized Finance
Entrepreneurs need to rise up
In the past decade or so, consumers have become virtual slaves to centralized organizations and technology companies. Now is the perfect time for entrepreneurs to rise up and wrest that control from those who don’t deserve it. Every individual needs to determine their own way of life, thinking and actions, rather than be “steered” by a central organization dictating the rules.
The current siloed environments — media, social media and others — are not beneficial to society. They erode privacy, introduce bias, and seem to push their agenda before anything else.
Every individual entrepreneur can enforce a positive change by breaking away from this approach and embrace cryptocurrency technology for a better future. The possibilities are endless, and your imagination is a crucial instrument to make a positive impact.