You’ve probably heard quite a lot lately about cryptocurrency. If you’re like most people, it’s also not something you’re terribly familiar with. The technologies of cryptocurrency and blockchain are still in their infancies, and just like with any brand-new innovation that has the potential to drastically change how we live our lives, many are suspicious of crypto’s abilities to be a successful upgrade to traditional banking systems.
The concept of cryptocurrency started as a grassroots movement by people who saw the limitations of traditional banking systems, and how they could be dangerous in terms of protecting your money, privacy, and peace of mind. So they created something that couldn’t be controlled by a single government or a handful of the most powerful people, but by all people, a form of payment and exchange that required only access to the internet, not the restrictions of geographical borders, governments, and regulatory entities.
It’s not as if traditional banking, credit, and fiat¹ currencies will be usurped by crypto any time soon, or even that they’ll go away completely. After all, when paper currency and credit eventually replaced the gold standard as the current exchange system, the gold standard still remained. Even so, cryptocurrency and blockchain technology have certain advantages over all of the above.
We’re only just starting to explore the advantages of cryptocurrency, with more benefits being discovered every day. That’s not to say there aren’t still risks involved—there are. It’s still a volatile landscape, and without a centralized government or bank holding control, it’s up to you as the individual to store your sensitive data and no point of contact to speak to if something happens to your crypto wallet. But while these risks and other challenges remain, such as government regulation and making cryptocurrency practical for daily use, there’s no doubt the potential of crypto is exciting.
The LGBT Foundation launched on January 12, 2018, aiming to capitalize on the potential of blockchain technology and cryptocurrency — alongside other technological innovations — for the good of the global LGBT community. For more information, visit our website or follow us on Twitter.
 Currency that a government has declared to be a legal tender, but not backed by a physical commodity (i.e. gold). Most modern paper currencies are fiat currencies.