Cryptocurrency is defined as “a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.”
“Hey honey! How many Bitcoins did we spend on groceries?” These words can already be heard among couples that own Bitcoin, a form of cryptocurrency created in 2009 by pseudonymous developer Satoshi Nakamoto. Since its inception in 2009 the list of cryptocurrencies has proliferated to more than 900 today. The list is led by Bitcoin (BTC) and Ethereum (ETH). Bitcoin is considered by many to be the most successful and game-changing cryptocurrency ever created. Nevertheless, many other currencies being born today may represent a more aggressive investment opportunity.
According to the Bank of Canada, the emerging Bitcoin economy has many similarities with the economy based on the gold standard, due to its limited and predictable supply, no central bank, low or non-existent inflation, no arbitrage costs for international transactions, less government control over the domestic economy, and, finally, loss of seigniorage revenues from the production of money.
Cryptocurrency is all electronic. Digital coins are stored in encrypted digital wallets and transferred digitally to other peoples’ digital wallets. No physical object is ever exchanged. Cryptocurrency transactions are all open source, controlled by code, and rely on peer-to-peer networks. A coin-holder’s identification is stored in an encrypted address that he or she has exclusive control over. It is not attached to a person’s identity like in a regular bank account.
According to industry experts, four of the main digital currency differentiators are:
ANONYMITY: No banking or government intervention
SECURITY: Being able to store and transfer currency safely and from point A to point B through a perfectly encrypted system
INNOVATION: The implementation of the digital currency is still in its infancy and many more advances, enhancements and future functionalities will take place in the near future. Cryptocurrencies represent a transformational innovation. George Gilder, a proponent of the gold standard, suggested digital currency implies breaking “the government monopoly on money.”
LIQUIDITY: Cryptocurrency can always be bought or sold at its fair price, has no discounts or premiums attached to it during buy or sell, and it is easy to enter and exit the coin. The increase in frequency and volume of trading helps to enhance liquidity.
Digital currency is in the spotlight. Here in Orange County, a new cryptocurrency was recently launched with a creative approach to market. The founder understood that speculation is not enough and participation is what gives a currency long-term sustainability. The coin is called PRO, which stands for Professional Retail Offering, and is currently trading under the symbol of PROC on the cryptocurrency exchanges. PRO’s main attribute is to be purpose-driven. Unlike most other coins which are speculative, PRO allows anyone to shop online at 4,500 retailers and earn PRO as a coin-back reward. PRO represents the first ever Loyalty Rewards Program based on cryptocurrency.
Imagine if you could have shopped for the last 8 years online at major retailers and earned Bitcoin as a coin-back reward. Bitcoin was trading for about a half of a cent per coin back then. Today it is trading for about $2,700 per coin. That’s a whopping 5,400% increase!
Merchants are currently adopting PRO as a form of payment, because there is already a community of shoppers that hold PRO and want to spend it on products and services.
It won’t be long before we are saying, “Hey honey! How many PRO did we spend on groceries?”
Find out more information about PRO Currency at ProCommerce.io