“Cryptocurrency is peer-to-peer money, which means there is no trusted authority, no company that issues the currency,” Artamonov said. Originally known as Bitcoin, and also popularly known as Ethereum, there are actually more than 7,000 cryptocurrencies and tokens right now, according to Artamonov.
Most people in the United States know cryptocurrency as a form of trading and investment, but in his presentation Artamonov explained how it is also used by emerging markets, remote workers/freelancers, donations and political organizations and many others.
Why people use cryptocurrencies
During the one-hour discussion, Artamonov highlighted a variety of benefits to using this new method of banking, sharing how it can be used to:
Avoid restrictions (like amount of funds you can transfer globally in a month)
Make direct transfer more efficient than a traditional bank transfer
Have safety and control with your money (can keep cryptocurrency on the computer or a private key so that no one can take money from you)
Keep your funds private (no one asking for passports, etc. when you open an account)
Reduce costs (to transfer cryptocurrencies, it’s usually less than $1 per transaction, even for global transfers)
What do you need to use cryptocurrency?
"All you have to do is install software," said Artamonov. "You don't need to go anywhere, you don't need to open an account with an organization and display IDs, just install software and start using it."
There are two types of cryptocurrency wallets: Guardian wallets (PayPal, Coinbase and Bitpay wallet) and there are non-complial wallets (Bitcoin core, metamaska, electrome and emerald). Storage wallets do not give you access to the cryptocurrency that you own, while incorrect wallets give you access to your currency, which allows you to keep them on your devices.
What are the challenges?
The biggest problem is mass adoption. “People avoid using cryptocurrencies because they don’t see others using the currencies, and they wait for other people,” Artamonov said. He adds:
People are afraid of the price volatility, which is good for investors, but bad for non-traders who want a stable price)
It’s a new concept: cryptocurrencies use private keys, and there is no one to call to restore or fix something and no central organization
Software complexity to properly use cryptocurrencies
Private key security (people don’t know how to backup the private key: You can lose money if you change your device, lose your private key or your private key is leaked
Looking into the future
So is cryptocurrency the future of banks? Altamonov says yes. "We believe that cryptocurrencies offer certain benefits compared to traditional financial systems. There are features that did not exist and were not considered opportunities," Altamonov said.