How Would a Decentralised Currency Work?

So when we talk about Bitcoin, or Ethereum, or any other currency, we talk a lot about the idea of a decentralised currency. It’s a cool idea and would be a major step forward economically, socially and otherwise, but what would it look like logistically?

Of course, we can only speculate. We’re a long time away from the idea of a single, unified currency for the whole planet, but it’s fun to speculate nonetheless. We thought it might be cool to try and think a little bit about what it might look like, and how it could impact the world we live in. Let’s explore some ideas.

How Does Decentralised Currency Work?

So, when it comes to the idea of a decentralised currency, how exactly does the process work? What should be kept in mind? 

To understand the big differences, let’s look at the existing global economy. Every segment of the world has its own currency. The UK has the pound, America has the dollar, Europe has the euro, and so on. 

All of these currencies are worth different amounts in different places in the world. The value of the dollar is not the same as the pound. This means that in some parts of the world, your money is worth more, and in others, your money is worth less. 

A decentralised currency works a lot differently. The idea of a decentralised currency is a single form of currency across the world. It would be like if everybody in the world paid for things with euros. The value of the euro would be the same across the world because there would be no need to convert currencies. That’s what crypto wants to do, ultimately.

How Would it Function?

For a single currency to be the method of payment across the world, a few things would need to happen, as far as we understand the situation. 

First of all, every single government entity in the world – from major world leaders to the smallest village – would need to agree on a single value for a cryptocurrency. So a single Bitcoin would need to be worth £1, $1, and €1 all at once, for example. 

Next, you’d need an internet connection for every place where currency was exchanged. The currency would be stored digitally in crypto wallets, and pulled down and spent where necessary. 

As you can probably imagine, those two steps alone would be a massive undertaking, and that’s mostly why it’s not happened just yet!

Final Thoughts

So, when it comes to making a decentralised currency, there are a few things to keep in mind. Ultimately, it’s pretty far off as an idea but it’s fun to think about nonetheless! 

We’d love to see it happen in our lifetimes but it’s a lot of international cooperation. Maybe one day it will be possible but for now, we’re content to watch the influence of the currency slowly expand. After all, it’ll be important to see this growth and to reach a point where people start to talk about it like it’s possible. 

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