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Which Cryptocurrencies Have the Potential to Replace Fiat Money?

This is the central question and motivation for cryptocurrencies, isn’t it? The original vendetta and aim of Satoshi Nakamoto, who so mysteriously launched Bitcoin into the dark corners of the internet 9 years ago. The time when cryptocurrencies completely replace fiat money is most likely a lifetime away. We are likely to still see thousands of new cryptocurrencies get tested and spit out.

And witness, off the carcasses of these failed experiments, many times over the evolution of new and improved blockchain technology. We will see nation-states experimenting with national cryptocurrencies quite soon, however. Especially utility cryptocurrencies or cryptocurrencies representing a natural resource or asset alongside fiat currencies.

You may have heard of Estonia’s Estcoin proposal or Venezuela’s Petro project already. In order for cryptocurrencies to be more widely accepted, there are a number of hurdles we need to overcome. One of the major factors that puts many off entering the digital currency market is that cryptocurrencies are not easy to use.

The First Problem
Handling fiat currencies comes almost as second nature to most people. Whether in paper or in their online banking system. They understand its value, how to trade it for products and services, and how it stacks up against a few other foreign currencies relevant to their lives on the global exchange. Money is an easy to use legal tender. While money is easy, financial products are not.

For example, many don’t feel confident enough to trade on the stock market, because it comes off very complicated. The very same confidence problem plagues the adoption of cryptocurrencies, but even more so. The concept of cryptographic currency is so foreign to most people in the real world, that even starting a cryptocurrency wallet can be too much to handle.

For those out of the loop, the technology is extremely difficult to understand. The software itself is remarkably uninviting and not user-friendly. In most cases, it’s used out of simple necessity rather than choice. The available help on the Internet often come in a form that seemingly require a computer science degree to even begin to understand.

The language and terminology used are extremely off putting. Most tutorials on the internet deeply fail to be simple enough or effectively and intuitively address the problems that everyday users encounter.

How To Solve The Problem?
You need only take a quick look back in history to see what transformed the worldwide web into what it is today. The development of helpful tools, such as the web browser and email, were largely responsible for the substantial growth that saw the rise of Internet. The software, user-interfaces, and the exchange of cryptocurrencies must become more accessible and intuitive.

Prior to these tools, the Internet was a place for medical students and computer science engineers to share plain text data for research and development. The Internet proved highly successful within these niche industries. This led to the advancement of more and better interfaces and also devices. As these devices and software became easier to use, the technology made its way into the hands of the general public.

The Internet grew into the amazing mass communication tool many of us cannot live without today – thanks to ease of use. Cryptocurrencies need the exact same revolution in ease of use. Without overcoming this problem, we cannot replicate the success of the Internet – a fact many projects are aware of.

Many projects, such as CLOAKcoin, have put considerable effort into wallets, designing their user interfaces with simplicity and accessibility in mind. CLOAK is a cryptocurrency designed to facilitate private, secure and untraceable transfers by using Enigma, which is a secure and decentralized off-blockchain mixing service. In addition to an easy to use user interface, the official CLOAK wallet providers stealth addresses and easy and fast synchronization to their blockchain.

The recent update also reduces fees for their anonymous transactions service Enigma. With as little as 1% of the world being involved in digital currencies and up to 75% of the global population having potential access to them through technology and the Internet, there’s enormous room for growth for various types of cryptocurrencies to compete with fiat money.

Disclaimer: This is not investment advice nor is it an official representation of the project and its goals. It is merely my opinion, so please read official sources and contact the project for fact verification. A wider discussion on the potential risks of the widespread adoption of blockchain technology is out of the scope of this article.

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