It is amazing how we adjust our thinking.  

Cryptocurrency is a world mostly of [speculation](https://leofinance.io/@leoglossary/leoglossary-speculation).  People are living the mooning and [Lambo](https://leofinance.io/@leoglossary/leoglossary-lambo) dreams.

This started with [Bitcoin](https://leofinance.io/@leoglossary/leoglossary-bitcoin), an [asset](https://leofinance.io/@leoglossary/leoglossary-asset) that made a lot of people very wealthy.  Those who go in for a few hundred dollars are now sitting on a nice [return](https://leofinance.io/@leoglossary/leoglossary-return-on-investment-roi).  At the same time, the ones who were able to get in for $10 have a nice fortune.

Everyone is looking for the next Bitcoin in terms of [market](https://leofinance.io/@leoglossary/leoglossary-market) action.  This is natural.  Throughout the [stock](https://leofinance.io/@leoglossary/leoglossary-stocks) market, we often hear people talking about the "next [Tesla](https://leofinance.io/@leoglossary/leoglossary-tesla)".

However, when it comes to currency, is this what it is about?  For most, it is.  Nevertheless, it is best for us to look at this from another angle.

In this article we will cover what could be the future of cryptocurrency and how things will unfold.

![image.png](https://images.hive.blog/DQmNeLkmfQ4VPhRWRAyy6Ug8R47NCH1sfoAV9FtJRxPjq93/image.png)
<center>[Source](https://www.cryptotimes.io/wp-content/uploads/2022/10/Future-of-cryptocurrencies-website.jpg)</center>

### Hive Backed Dollar

We spent a lot of time discussing the [Hive Backed Dollar (HBD)](https://leofinance.io/@leoglossary/leoglossary-hive-backed-dollar-hbd).  This is Hive's [stablecoin](https://leofinance.io/@leoglossary/leoglossary-stablecoin).  Why is this so important?

If we are going to consider the future of [cryptocurrency](https://leofinance.io/@leoglossary/cryptocurrency), perhaps it is best to look at our existing system.

Many feel that we have to get HBD on exchanges, especially the centralized ones.  We need to get HBD available on [Binance](https://leofinance.io/@leoglossary/leoglossary-binance) and [Coinbase](https://leofinance.io/@leoglossary/leoglossary-coinbase) goes the thinking.  Without that, the currency is doomed.

After all, people need access to it.

As a contrast, how many people reading these words have used the [FOREX](https://leofinance.io/@leoglossary/leoglossary-forex) market?  How many did a currency swap in the [fiat](https://leofinance.io/@leoglossary/leoglossary-fiat-currency) world?  Other than traveling, it is likely very few.  Most simply do not engage in that arena.

Instead, we get a hold of the [currency](https://leofinance.io/@leoglossary/leoglossary-currency) through different employment and [investment](https://leofinance.io/@leoglossary/leoglossary-investment) means.  When one works, he or she receives a paycheck.  That will likely be in the [legal tender](https://leofinance.io/@leoglossary/leoglossary-legal-tender) of the nation.

Why do we think things are no different with HBD?  People claim there is no access to it yet we find many ways people are accumulating HBD.  Each time someone is rewarded for a [comment](https://leofinance.io/@leoglossary/leoglossary-comment-hive), they are getting a bit of HBD.  The same is true when the [50/50](https://leofinance.io/@leoglossary/leoglossary-50-50-payout-option) option is selected on [posts](https://leofinance.io/@leoglossary/leoglossary-post-hive).  There is [interest](https://leofinance.io/@leoglossary/leoglossary-interest) paid on HBD in [savings](https://leofinance.io/@leoglossary/leoglossary-savings-account-hive).  Finally, people receive HBD when their [proposals](https://leofinance.io/@leoglossary/leoglossary-proposal-hive) are funded.

The fact is HBD is already being distributed.

### Access To Coins

Certainly there does need to be a way to get into the different [coins](https://leofinance.io/@leoglossary/leoglossary-coins) on Hive.  Not everyone is going to show up and blog.  There will be ones who prefer to use HBD as part of their [fixed income](https://leofinance.io/@leoglossary/leoglossary-fixed-income-instruments) [portfolio](https://leofinance.io/@leoglossary/leoglossary-portfolio).  Here is where the future has to be mapped out.

While many feel the addition to [exchanges](https://leofinance.io/@leoglossary/leoglossary-exchange) (centralized) is important, another view is to bypass them altogether.  We could be looking at an animal that has a very limited future.

After all, why do we need something like Coinbase and Binance other than for conversion of fiat to crypto (and the reverse)?  The future of crypto-to-crypto swaps do not have to include these entities.

Here is where [decentralized finance (DeFi)](https://leofinance.io/@leoglossary/leoglossary-decentralized-finance-defi) enters.  We can utilize the tools available here to make both HBD and [$HIVE](https://leofinance.io/@leoglossary/leoglossary-usdhive) available to the masses.  For accessibility, it only requires a BTC or LTC bridge.  If we could be a [liquid](https://leofinance.io/@leoglossary/leoglossary-liquidity), deep pool, anyone who can get a hold of them could access the Hive coins.

At the same time, we could push the [DEX](https://leofinance.io/@leoglossary/leoglossary-decentralized-exchange-dex) to carry one (or both) of the coins.  This would also provide a pathway to enter the Hive ecosystem.

For now, it is rather limited.  However, this is where the community needs to take the onus upon itself to establish the mechanisms which will allow people to enter the ecosystem.  The [reward pool](https://leofinance.io/@leoglossary/leoglossary-reward-pool), along with the HBD [interest rate](https://leofinance.io/@leoglossary/leoglossary-interest-rate), is still the key components to adoption.

### Commercial Use Cases

Stocks are purchased using exchanges.  For most, [currency](https://leofinance.io/@leoglossary/leoglossary-currency) is earned and spent.  Here is the key difference.

We highlighted HBD because that is Hive's transactional currency.  Stablecoins are where people need to concentrate efforts for use case.  $HIVE is the value capture token which could lead people to have to swap on exchanges.  The former, however, should be thought like any other currency.

There are some options already arising.  We see some merchants in Venezuela already accepting HBD as [payment](https://leofinance.io/@leoglossary/leoglossary-payment).  Building out this facet of the ecosystem is vital.  Here is where the future of cryptocurrency resides.

To me, we are going to see a time where the exchange mentality is diminished.  Instead, people will amass cryptocurrency through their actions, ultimately putting them in a position to spend it.  

The key is to get to the point where people are using stablecoins to purchase real world goods and services which they require.  Here is where the idea of regulating exchanges and other practices are useless.

When one uses a [peer-to-peer](https://leofinance.io/@leoglossary/leoglossary-p2p) system to pay one's hairdresser, we can see how the system evolved past the regulators.

In other words, the key is to build up Hive's [economy](https://leofinance.io/@leoglossary/leoglossary-economy).  Here is where a coin like HBD establishes a different position.

### Life Without Centralized Exchanges

There will come a time where most people will not be dealing with centralized exchanges.

Cryptocurrency is going to spread, most likely starting in the developing world.  Those areas without a stable national currency will prefer to engage in commerce using something that is tied to the USD.  Here is where stablecoins enter.

At the same time, since the banking systems also tend to be subpar, a [digital](https://leofinance.io/@leoglossary/leoglossary-digital) [wallet](https://leofinance.io/@leoglossary/leoglossary-wallet) provides these individuals with the services required.  They have the ability to send, receive, and store money, all without a [bank](https://leofinance.io/@leoglossary/leoglossary-bank).  This means both [business](https://leofinance.io/@leoglossary/leoglossary-business) and personal [transactions](https://leofinance.io/@leoglossary/leoglossary-transaction) can be conducted.

The majority of people will not require the conversion to fiat, at least not on a regular basis.  It is akin to people converting a [US dollar](https://leofinance.io/@leoglossary/leoglossary-u-s-dollar) to quarters.  Perhaps one goes to a bank for that yet most times one simply walks into the supermarket.  In other words, there are other ways to accomplish the same goal.

Those who are deeply involved with cryptocurrency will be accumulating coins and [tokens](https://leofinance.io/@leoglossary/leoglossary-token).  This will translate into them spending them through various means.  Once we arrive at the point of regular commerce, then we are moving beyond the speculation/buying mentality.  People will be actually earning their [money](https://leofinance.io/@leoglossary/leoglossary-money).

Centralized exchanges will be limited mostly to fiat transactions.  Even the crypto-to-crypto world will be handled outside these entities.

It is simply a matter of time before they all are reduced to something much smaller.  For now, it only requires us to build the [infrastructure](https://leofinance.io/@leoglossary/leoglossary-infrastructure-computer) and start the funding of these different [pools](https://leofinance.io/@leoglossary/leoglossary-liquidity-pool-lp).

What are your thoughts?  Does this seem like a path that cryptocurrency could take?

___
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