2009 saw the launch of the first cryptocurrency, Bitcoin, on the open market. The federal government of  Germany recognized this cryptocurrency as a kind of private money and a unit of account for use in multilateral clearing circles in 2013 (Münzer, undated), both legally and for tax reasons. According to  Germany's Federal Financial Supervisory Authority (BaFin), Bitcoin is categorized as a currency-like unit of value. As a result, the relatively new cryptocurrency that has gained recognition is neither legal tender nor electronic money, foreign currency, or foreign money. In many areas, Switzerland as a state does not recognize it as a form of payment. Even so, one can use Bitcoin to pay taxes in the canton of Zug, for instance. Established cryptocurrencies are frequently viewed as securities from a tax perspective. 

Crypto mining was named by Forbes as the final nail in the coffin of climate change in 2018. (BR, 2021).  The issue of the much-mentioned power consumption needed for crypto mining was the cause of this. As our attention has shifted more and more toward cryptocurrencies, the energy generation that goes along with them has also come into sharper focus, giving rise to divergent viewpoints throughout the world.  Without a doubt, the majority of the time, digital creation uses a lot of energy. But how much electricity does mining cryptocurrency truly use? In June 2021, Cambridge University's electricity usage index for Bitcoin indicated a yearly energy consumption of over 115 terawatt-hours (TWh). The statistics from the Digiconomist portal, with a figure of 126 TWh annually, were a little bit higher. Furthermore, Dutch scientists reported in 2018 that 80,000 credit card transactions, for example, spend the same amount of energy as a Bitcoin transaction, and that value may now be valued much higher (BR, 2021). 

The impacts of a single cryptocurrency transaction are even more dramatically described by the  Frankfurter Allgemeine Zeitung: the power usage is equal to that of a typical American household in 23  days. In other words, the carbon impact is equivalent to 54,000 hours of online video viewing. (FAZ,  2021). Cryptocurrencies are kept in a digital wallet, often known as a purse. You need to utilize a wallet if you wish to trade with cryptocurrencies. The wallet utilizes asymmetric cryptography and has two distinct digital keys—a public key and a private, encrypted key—to operate. The only place the actual currencies exist is on the blockchain, though. The public and private keys needed to access the cryptocurrency are therefore managed by the wallets rather than the virtual currency itself. Every time there is anything valuable, as is so often, there is someone looking to profit from it. Therefore, it is necessary to provide a  warning against illegal actions in this field, including attempted fraud. 

A dramatic hacker assault in the Decentralized Finance (DeFi) space in August 2021 is perhaps the most recent and notable illustration of security vulnerabilities for crypto interfaces. The word "DeFi" refers to financial offers that have decentralized control rather than central control and omit intervening institutions like banks and brokers. The concept behind this type of governance is that cryptocurrency entrepreneurs may duplicate conventional financial products in a decentralized architecture, free from corporate and governmental oversight. 

The objective of DeFi is to rebuild the financial system for the entire globe in an open, permissive manner, according to Alex Pack, managing partner of Dragonfly Capital, a $100 million cryptocurrency firm. The need for wholly decentralized applications has increased as claims of money laundering and other forms of abuse in systems under central control have grown (Kauflin, 2019). Although much effort is being made to realize this objective, there is always a chance of fraud with new technologies. By the end of July 2021, $681 million had been lost to cryptocurrency thefts, hacks, and scams, according to  Cybertrace, a blockchain forensics company. A breakdown of the various forms of theft and fraud shows that, although this figure is lower than the highs of prior years, a pattern that was noticed at the start of the previous quarter is still present: DeFi-related crime keeps rising from one quarter to the next.

The use of cryptocurrencies has spread around the world. They also lead to a great deal of anxieties,  concerns, and opportunities. The same is true of the technological and societal changes they have brought about, particularly in traditional banking systems. Supporters of cryptocurrency financial platforms contend that because they are not directly connected to any nation-state, government, or company, they are naturally trustworthy systems. This is stated in an online essay from Stanford University.  Consequently, they are better than conventional physical currencies due to their sovereignty.  

This isn't (quite) true right now, though, as a suitable infrastructure is still needed for cryptocurrencies to function. For instance, as it recently did with the closure of multiple cryptocurrency farms, previously described, the Chinese government might fundamentally alter cryptocurrencies by imposing its will on the data miners who keep them operational.  

However, because the future is what is genuinely thrilling, it makes sense to do so. It would be useless to define the status quo as a long-term fixed assessment at this early stage of the crypto revolution. Entire sectors will alter as soon as blockchain-based business models become accepted, and pervasive in the mass market, and among our consumer communities, similar to what happened at the beginning of the 2000s  when e-commerce took off. 

It seems obvious that cryptocurrencies might eventually displace all fiat money. Every user can take part in the creation of virtual currency through the decentralized system by purchasing or selling electronic currency. Central banks and other organizations, such as brokers, are not obligated in any manner and are not permitted to speculate with the funds of their users during the 48-hour transaction period. This is due to the fact that the community, and not a single entity, keeps track of every transaction and confirms it. 

One of the most intriguing possibilities is how cryptocurrencies may alter how society views property since ownership will be more open. The practice of paying without cash is well-established, and in the future, it will become even more safe. Additionally, blockchain technology allows for the accurate tracking of a person's or a business's complete assets without compromising identification or data security. The political aspect is equally clear: how much better might democracy function if there was even a remote possibility of vote fraud? In light of this, blockchain will simplify and improve many aspects of our life,  and cryptocurrencies provide a fascinating glimpse into the future of finance. 

Undoubtedly, crypto Euros, Pounds, and Francs will appear, which will be issued by central banks as stablecoins - stable in the exchange rate - at a ratio of 1:1 to the real money. But keep in mind that this is not a task for central banks. Take Teller Limited's creation of a stablecoin as the US Dollar's counterpart as an illustration. The coin is known as Tether, goes by the symbol USDT, and may always be used to make payments in actual US dollars at a 1:1 ratio. The question that now emerges is: if the US  government offered its own stablecoin, which would its inhabitants prefer—the state-controlled stablecoin or the privately issued, unregulated stablecoin?  

After considering all the studies, inventory, and assessments, one thing is still crystal obvious to me: even before the first major war started, the outcome has already been determined: cryptocurrencies will eventually replace all traditional physical currencies. How exactly this will take place, however, is all up to circumstance. Who would ignite the first spark to cause this, and what technological advancement would make it possible? 

But there is already one thing that is certain. There will be the establishment of newer technologies and verification procedures that use far less energy than the processing and technological operations associated with Bitcoin that exist now. And it should be obvious to most people that not everything can be 

fully developed and improved at once, especially with such young technology. Therefore, we can anticipate that the blockchain will be updated, protocols will be improved, and newer, more secure, less expensive, and more effective solutions will follow. The struggle for supremacy in crypto-related subjects will see the emergence of new actors and stakeholders. Meanwhile, no one should hastily write them off even if central banks don't respond right away. Many interested parties, including the Central Bank of  China and other central banks, are already getting ready to introduce a government-backed cryptocurrency. 

The result, in my opinion, is already clear. The blockchain will replace all current currencies with perfect replicas. Nothing would be better for politicians and central banks if everything remained the same, which sounds nearly monotonous. But the contrary will be true: printing money won't ever be simpler than it will be in the future. The most thrilling aspect about accomplishing this is that it will still be legal—at least in light of recent case law. Some cryptocurrencies will compete with the central banks' stablecoins.  Because they have existed in a non-competitive environment since their origin, central banks are inert because they are not acclimated to this. In order to maintain stability, manage the money supply, and control interest rates and inflation, central banks were established. They weren't designed to foster creativity or be creative themselves. As a result, they lack the skills, procedures, and resources needed to be ready for the impending competition. 

Because of this, I have no doubt that the financial industry is still in one of its most fascinating periods. Nothing will remain the same. Future value securitizations will incorporate intelligent,  blockchain-securitized solutions, including those for bonds, futures, currencies, commodities, equities,  and real estate. Numerous innovative technology solutions will continue to have advantages over older ones. New players will also be produced through new solutions. All tangible assets and cryptocurrencies,  as I've previously indicated in the prologue, revolve fundamentally around trust. After all, despite the fact that the US is severely indebted, why can the government virtually manufacture money indefinitely? We all have faith in the US to always pay down all of its obligations, which is why. And although new loans will continue to replace old obligations, as is the case in many countries, history has already demonstrated the weakness of this system. For instance, without the significant assistance of the European Union,  Greece would unavoidably have fallen into insolvency during the financial crisis of 2008 and 2009. For this goal, billions of additional Euros were printed. The European Central Bank (ECB) would have to continue issuing new stablecoins in the same ratio in the future. This needs to be accepted by the users.  However, there may be other Euro/stablecoins that are not under ECB authority and which may offer additional benefits. 

There are undoubtedly millions of solutions for blockchain technology and crypto assets worldwide since the human imagination has no bounds. Just as an illustration, ask yourself why the worldwide coffee juggernaut Starbucks shouldn't have its own cryptocurrency, the Starbucks Coin, which would have various benefits for its customers. This would also imply that the business would be in possession of every Starbucks wallet's address. As a result, Starbucks might give away items to these wallets with the aid of Free Air Drops in order to encourage its clients to frequently visit one of the company's numerous locations and make purchases there. It would make the ideal customer loyalty test and retention tool. In addition, no bank or credit card fees would be applied to any transactions made directly at Starbucks.  There are a lot more instances of fascinating uses like this. Additionally, we may anticipate that they will all have a few advantages over current alternatives, like being more advanced, adaptable, and intelligent. 

Our whole financial system is in the process of being transformed by a new global paradigm. The current monopolists, the global central banks, would not only have to contend with new rivals but they would also be placed in a competitive environment for the first time. Participants will need to totally rearrange 

themselves if they want to continue playing any role that is important. Most likely, power will be redistributed and new market players will be introduced in order to give innovative new solutions for a  vibrant, modern, and international financial market environment. 

For those who essentially reject all innovation and only see the risks or dangers in new possibilities, they are undoubtedly a curse. For those of us who would welcome the establishment of a more contemporary,  secure society, however, they are a godsend. Thanks to cryptocurrencies, the use of fake money may become illegal in the future, and large-scale money laundering and the funding of terrorism may become impossible. Additionally, new opportunities are emerging to improve the efficiency of international financial operations.