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The question was asked of me as columnist at Quora.com: Will governments eventually ‘approve’ of cryptocurrency? First let’s agree on terminology…

  1. By “approve”, I assume that you are asking if governments will adopt or at least tolerate the use of crypto as legal tender in commerce. That is, not just as a payment instrument, but as the money itself—perhaps even accepting tax payments in cryptocurrency.
  2. The word “cryptocurrency” is sometimes applied to altcoins and even to ICOs. These are not the same. Many altcoins meet the criteria of the next paragraph, but none of the ICOs measure up (ICOs are scams). I assume that your question applies to Bitcoin or to a fair and transparent altcoin forked from the original code, such as Bitcoin Cash or Litecoin.

A blockchain-based cryptocurrency that is open source, permissionless, capped, fast, frictionless, with a transparent history—and without proprietary or licensing restrictions is good for everyone. It is good for consumers; good for business; and it is even good for government.

Of course, politicians around the world are not quick to realize this. It will take years of experience, education, and policy experimentation.

Many pundits and analysts have the impression that shifting to cryptocurrency—not just as a payment instrument, but as the money itself—will never be supported by national governments. A popular misconception suggests that a cryptocurrency based economy has these undesirable traits:

  • it is deflationary (i.e. that inflation is necessary to promote spending or to accommodate a growing economy)
  • it facilitates crime
  • it interferes with tax collection
  • It interferes with national sovereignty, which leads to “world government”
  • It is not backed by anything, or at least not by anything substantial, like the Dollar, Euro, Pound, Yuan or Yen
  • it interferes with a government’s ability to control its own monetary policy

Over time, perceptions will change, because only the last entry is true. Adoption of cryptocurrency puts trust into math rather than the whims of transient politicians. It helps governments avoid the trap of hoisting debt on future generations or making promises to creditors that they cannot keep—Yet, it does not lead to the maladies on this list.

But, what about that last item? Does an open source currency cause a nation to lose control over its own monetary policy? Yes! But it is not bad! Crypto cannot be printed, gamed or manipulated. Despite perception, it is remarkably resistant to loss or theft. Early hacks and fiascos were enabled by a lack of standards, tools and education. As with any new technology—especially one that changes practices or institutions—adoption of radical processes goes hand-in-hand with gradual understanding and acceptance of benefits.

How Does Crypto Help Governments?

Adopting/accepting a national (or international) cryptocurrency is a terrific way for governments to earn the respect and trust of citizens, businesses, consumers and especially creditors. There is no more reason for governments to control their money supply than there is for them to control communication networks, space travel or package delivery services.

You may not agree that cryptocurrency is good for government, and so I expand on the topic here. But your question doesn’t ask if it is good, it asks if governments are likely to approve.

Yes. Eventually…

First, a few forward thinking countries like Iceland, Japan or UAE will spearhead adoption of a true, permissionless cryptocurrency (or at least recognize it as legal tender) . Later, ‘stress-economies’ will join the party: These are countries that need to control either rampant inflation, a reluctance to tax citizens, treasury mismanagement or massive international debt. A solution to these problems requires restoration of public trust. I wouldn’t be surprised to see Greece, Zimbabwe, Venezuela or Argentina in the mix.*

Eventually, G7 countries will tread into a growing ocean. Not now; but in 5 or 8 years. The conditions are not yet right. It requires further vetting by early adopters, continued development, education and then popular consumer adoption. But all of these things are inevitable. Eventually, governments will recognize that a capped, trusted, transparent, math-based money is far better for all stakeholders than money based on intrinsic value, promise-of-redemption or force.

* We are not discussing countries that plan to create their own cryptocurrency. None of these plans involve a coin that is open source, permissionless, decentralized and capped. They are simply replacing paper with a national debit card. But it is not crypto.

Philip Raymond co-chairs CRYPSA, hosts the New York Bitcoin Event and is keynote speaker at Cryptocurrency Conferences. He sits on the New Money Systems board of Lifeboat Foundation. Book a presentation or consulting engagement.

Telecom experts are going so far as to herald the arrival of 5G as the advent of the fourth industrial revolution. There are an ever-expanding number of high-tech devices out there trying to connect to the internet every day, many of which require extensive bandwidth, and companies across the board will leverage 5G capabilities to better reach consumers.

“The application of 5G technology will result in massive changes for both consumers and enterprises,” said Jeff Weisbein, founder and CEO of digital media company Best Techie. “5G networks will offer consumers incredible broadband speeds at home (up to 20Gb/s). It will also enable companies to make advancements such as even smarter, better connected cars, advancements in medical technologies and improved retail experiences through personalization.”

5G refers to 5th-Generation Wireless Systems and uses additional spectrum in the existing LTE frequency range to build on the capabilities of 4G, which is often used interchangeably with 4G LTE by marketers. LTE denotes Long Term Evolution, and is a term that was deployed with early 4G networks that presented a substantial improvement on 3G, but did not fully qualify as 4G, meaning 4G LTE is essentially first-generation 4G.

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Robots aren’t playing professional soccer just yet, but they can certainly help predict it! With the FIFA World Cup kicking off, San Francisco-based tech firm Unanimous A.I. has used its considerable artificial intelligence expertise to predict the outcome of the 32-team men’s soccer tournament. Given that the startup has previously predicted the Super Bowl results successfully right down to the exact final score, we totally think this is worth taking seriously.

“These predictions were generated using swarm A.I. technology,” Louis Rosenberg, founder and CEO of Unanimous A.I., told Digital Trends. “This means it uses a unique combination of human insights and artificial intelligence algorithms, resulting in a system that is smarter than the humans or the machines could be on their own. It works by connecting a group of people over the internet using A.I. algorithms, enabling them to think together as a system, and converge upon predictions that are the optimized combination of their individual knowledge, wisdom, instincts, and intuitions.”

The technology is modeled on the remarkable abilities of swarms in nature, such as swarms of bees, schools of fish, or flocks of birds. These natural swarms combine the insights of large groups in optimized ways. Unanimous’ swarms utilize this same principle to answer complex questions — such as giving precise probability-based outcomes on each game in the World Cup.

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Researchers at QuTech in Delft have succeeded in generating quantum entanglement between two quantum chips faster than the entanglement is lost. Via a novel smart entanglement protocol and careful protection of the entanglement, the scientists led by Prof. Ronald Hanson are the first in the world to deliver such a quantum link on demand. This opens the door to connect multiple quantum nodes and create the very first quantum network in the world. Their results are published in Nature.

By exploiting the power of quantum entanglement, it is theoretically possible to build a invulnerable to eavesdropping. However, the realization of such a is a real challenge—it is necessary to create entanglement reliably on demand, and maintain it long enough to pass the entangled information to the next node. So far, this has been beyond the capabilities of quantum experiments.

Scientists at QuTech in Delft have are now the first to experimentally generate entanglement over a distance of two metres in a fraction of a second, on demand, and theoretically maintain this entanglement long enough to enable entanglement to a third node. “The challenge is now to be the first to create a of multiple entangled nodes—the first version of a quantum internet,” professor Hanson says.

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S cientists have created the UK’s first ever “unhackable” fibre network in anticipation of the dawn of quantum computers, a technology that could render current security systems completely useless and leave critical infrastructure, banking and healthcare networks open to hackers.

The network, constructed by researchers from BT, the University of York and the University of Cambridge over the past two years, is secured by the laws of quantum physics which dictate how light and matter behave at a fundamental level. Using this, it is able to block anyone attempting to crack into the fibre link.

This could be a game changer for the healthcare and financial sector, when it is feared existing encryption…

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For the first time, Volkswagen experts have succeeded in simulating industrially relevant molecules using a quantum computer. This is especially important for the development of high-performance electric vehicle batteries. The experts have successfully simulated molecules such as lithium-hydrogen and carbon chains. Now they are working on more complex chemical compounds. In the long term, they want to simulate the chemical structure of a complete electric vehicle battery on a quantum computer. Their objective is to develop a “tailor-made battery”, a configurable chemical blueprint that is ready for production. Volkswagen is presenting its research work connected with quantum computing at the CEBIT technology show (Hanover, June 12–15).

Martin Hofmann, CIO of the Volkswagen Group, says: “We are focusing on the modernization of IT systems throughout the Group. The objective is to intensify the digitalization of work processes – to make them simpler, more secure and more efficient and to support new business models. This is why we are combining our core task with the introduction of specific key technologies for Volkswagen. These include the Internet of Things and artificial intelligence, as well as quantum computing.”

The objective is a “tailor-made battery”, a configurable blueprint Using newly developed algorithms, the Volkswagen experts have laid the foundation for simulating and optimizing the chemical structure of high-performance electric vehicle batteries on a quantum computer. In the long term, such a quantum algorithm could simulate the chemical composition of a battery on the basis of different criteria such as weight reduction, maximum power density or cell assembly and provide a design which could be used directly for production. This would significantly accelerate the battery development process, which has been time-consuming and resource-intensive to date.

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E xperts are suggesting quantum computing may render blockchain obsolete. As the tech giants such as Google and IBM are showing interest in Quantum computing the danger is evident. According to MIT Technology Review, this type of computing can hack the cryptography hash that universally secures the blockchain and in general the internet. This would suggest quantum computers may complete fraudulent transactions and steal coins. With its exponential power, quantum computers threaten blockchain’s future security.

Blockchain consists of encrypted nodes connected on a chain, which currently makes it almost impossible to hack. The order of entries adheres to the blockchain protocol, which makes it counterfeit-resistant.

To successfully hack a blockchain, you would need to alter both the targeted block and all of the blocks connected. Blockchains are synced throughout a peer-to-peer network. In this type of system, there is no central point of failure for hackers to penetrate. For a hacker to have a chance of penetrating the network, they would need to simultaneously alter at least 51% of the blockchain.

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Microsoft is leveraging technology from submarines and working with pioneers in marine energy for the second phase of its moonshot to develop self-sufficient underwater datacenters that can deliver lightning-quick cloud services to coastal cities. An experimental, shipping-container-size prototype is processing workloads on the seafloor near Scotland’s Orkney Islands, Microsoft announced today.

The deployment of the Northern Isles datacenter at the European Marine Energy Centre marks a milestone in Microsoft’s Project Natick, a years-long research effort to investigate manufacturing and operating environmentally sustainable, prepackaged datacenter units that can be ordered to size, rapidly deployed and left to operate lights out on the seafloor for years.

“That is kind of a crazy set of demands to make,” said Peter Lee, corporate vice president of Microsoft AI and Research, who leads the New Experiences and Technologies, or NExT, group. “Natick is trying to get there.”

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