“With cryptocurrencies, the money is yours”
If you’ve heard of the blockchain, you surely know something about the infrastructure that underpins the world of cryptocurrencies. “Cryptocurrencies are digital currencies,” 11Onze’s CTO Raul Arribas sums up in a new episode of L’Estat de la Nació.
“It is money that exists in the digital world, and not in the real world, understanding real as that which we carry in our wallet and can touch with our fingers. But it is not much different from the money we usually use,” Arribas explains. In fact, you have to think that nowadays we pay for almost everything with our cards or mobile phones, we make transfers, we collect our paychecks, and we never see the banknotes.
So what is the difference with conventional money? The first, in fact, is the technology that supports it, the blockchain. “It is a much more secure technology than the current one. Cryptocurrencies are a type of money that is more protected in the digital environment,” 11Onze’s CTO summarises. And he adds that “the other big difference is that the money is yours.”
“Conventional electronic money is not entirely ours. If I want to make a transfer, the bank has to authorise it, if I want to pay in a restaurant, I won’t be able to pay if Visa or Mastercard doesn’t validate that card…,” Arribas explains. “With cryptocurrencies, on the other hand, there is no one to stop me from sending money to someone else,” he says. This is because cryptocurrencies do not have a central institution that decides what can be done and what can’t. “This is a very important paradigm shift,” 11Onze’s CTO says.
Securing everyone’s interests
“For decades, central banks have not been issuing banknotes and coins according to the gold reserves they have, but they can issue any currency they want, and they do it to alter the economy according to the interests, supposedly of everyone. But in the end we always end up paying the same people. As is happening nowadays, when central banks start printing money, inflation rises and then people’s savings lose value and we can buy less things with the same money,” Raul Arribas explains.
On the contrary, what makes cryptocurrencies valuable is how they manage to create new currencies in circulation. This is thanks to the people who secure the whole technological environment, and who, in fact, work precisely for that, to get rewards for their work, something key to sustaining the whole system. “It’s set up in a decentralised way that prevents the people working on it from having a vested interest in owning the system,” 11Onze’s CTO sums up.
If you liked this article, we recommend you read:
Fintech Talks2 min read
11Onze starts a series of talks at Monday, a pioneering network of coworking spaces in Spain.
“11Onze is a transcendental project”2 min read
Cryptocurrency and NFTs, the metaverse, artificial intelligence