Cryptocurrency and the Problem of Intermediation by Harwick

"Cryptocurrency and the Problem of Intermediation" is an article written by Harwick that explores the role of cryptocurrency in the financial industry. In the article, Harwick argues that cryptocurrencies can challenge the traditional intermediaries such as banks and payment processors by removing the need for a trusted third party to facilitate transactions.

The article discusses the benefits of cryptocurrency, including lower transaction fees, faster and cheaper cross-border transactions, and improved security through the use of cryptographic algorithms. Additionally, Harwick explains how the decentralization of cryptocurrencies, where transactions are recorded on a public ledger that is maintained by a network of computers, eliminates the need for a trusted third party and reduces the risk of fraud and hacking.

However, the article also acknowledges some of the challenges faced by cryptocurrencies, such as the lack of regulation, volatility, and a lack of understanding among the general public. Harwick argues that the future of cryptocurrency will depend on the ability of the industry to overcome these challenges and to establish itself as a viable alternative to traditional intermediaries.

Overall, the article provides a comprehensive overview of the current state of cryptocurrency and its potential to disrupt the financial industry by removing intermediaries and improving the efficiency and security of financial transactions.

10-02-2023