Originally published in The Huffington Post
After discussing how bitcoin is modernising finance as we know it and digging deep into the impact on the banking industry, how we are paying for goods and services, and the decentralisation of exchanges made between individuals and businesses, we are set to get into more details about the future of bitcoin in our way of life.
A business registry of decentralised basis
Managing all of your company’s customer data and enormous paperwork is considered one of the most painstaking errands of running a business. There are many new companies, such as Fatcom, that are providing methods to organise enormous numbers of business records using a wide number of public blockchains. They are currently including the bitcoin, ethereum blockchains and the ripple. Such companies are working to transfer information from today’s stock markets to private storage mediums on strong networks of public blockchain. Such measures will facilitate mitigating the process of conversion of stock exchanges based on fiat to exchanges using decentralised blockchain. Therefore, a secure environment for those interested in investing in clear as crystal firms, in addition to providing user-friendly services delivering decentralised business registries is developed as a result. Such services can be audited by any individual.
The concept of crowdfunding and loans
Loans provided through P2P mediums will fundamentally alter how people and businesses will be receiving necessary funds. Loaning mediums based on a decentralised basis will render more competition in reference to interest rates, and this includes both the lender and the borrower. And there will be no need for the greedy middlemen. Online activity and references will be the source to determine credit ratings by means of a number of online lending parties, instead of rating agencies that work privately. This concept will eliminate once and for all the corruption experienced in credit rating agencies. How? Both histories of all lending and reputation of online presence will be provided as transparent subjects.
The insurance industry
Insurance fraud will also be decreased through developing markets of transparent insurance, and all this is made possible by enhancing transparency by both sides, being the customer and the insurance company. By using self-enforcing contracts on electronic mediums, insurance companies of the future can actually become insurance markets of P2P nature. Such markets would specify the reasonable value of an insurance, especially according to the reputation of a customer. The higher the credibility an insurance customer enjoys, the lower the rates become. This will actually encourage different people to maintain clean insurance claims, or else they will face a future higher premium. Through the decentralisation of which companies can actually provide insurance, we will be enjoying an established insurance with fair market value. More competition amongst the insurance market will be the fruit.
The forecast & various choices
Predictions of future markets will grow in accuracy if blockchains are actually able to deliver the chance for us to appropriately store and recall information through incorruptible methods. This is actually a double-edged sword, considering the fact that all the data is provided in a public manner, resulting in biased market opinions creating hugely violent swings in prices skyrocketing and nosediving due to a new mentality. A future forecasting market of decentralised nature can and will render more balanced expectations of analyzing what the stock markets will have for us in the future. Or any other industry, for that matter.
Even more transparency
Bitcoin offers a method to immediately establish and update a personal checkbook, listing each and every transaction an individuals has made. This is an ideal concept for those who are seeking support in balancing their finances. Therefore, it will become impossible for people in the future to not know (even willingly) how they have spent their money. Partners in businesses and marriages will eventually enjoy a method to hold each other accountable for their actions and spending. This is made possible by establishing a checkbook transparent for both parties, and to whomever they wish. Partners of all kinds will no longer need to rely on a third party to manage and protect their sensitive personal data and precious money, or even settle their disputes.