Will Cryptocurrency Ever Become A Mainstream Currency?
There has been plenty of talk surrounding cryptocurrency recently. The buzz of this ever-evolving industry has not been like so since its inception in 2008. The pioneer cryptocurrency, Bitcoin, is the leading token and face of the industry. It has developed in several ways to assure that indeed cryptocurrency will become a mainstream currency sooner than expected. Everyone knows of the crypto miner who traded 10,000 bitcoins for two pizzas in May 2010. In the current market, these bitcoins are worth nearly USD 400 million. The unpredictability of value makes it a highly volatile investment. It still has gained its way into the mainstream.
Bitstamp’s Survey On Crypto As A Mainstream Currency
A crypto exchange service surveyed the possibility of cryptocurrency becoming a mainstream currency. In its findings, crypto will adopt into the mainstream within ten years. Bitstamp exchange conducted the survey. It involved over 28, 000 investors from 23 countries. These countries were widespread from Europe, North America, the Middle East, Latin America, and Asia-Specific. From this, 88% of the institutional investors and 75% of the retail investors foresee crypto having mainstream adoption within ten years. Furthermore, 80% of the institutional investors believe it will surpass the custom investment vehicles. The level of trust in crypto is high. 71% of investment professionals and 65% of daily investors have their trust in digital assets. Developing countries portray most of this trust. 79% of emerging economies believe crypto is more trustworthy compared to the 62% of more developed financial markets.
Signs of acceptance of crypto into a mainstream currency
PayPal has embraced crypto into its platform. Users can transfer digital currencies amongst each other, and recently, the platform enabled users to withdraw. PayPal has an expansive market reach to ease the trading of crypto. Household names in the investment space are also getting into the crypto space.
There is growth in the crypto ecosystem via the Ethereum network. Smart contracts enable Dapps for P2P crypto exchanges and lending. The Ethereum 2.0 will enable access to financial services without fiat currency.
Importance Of Regulation In Making Crypto A Mainstream Currency
Cryptocurrencies have grown popular due to their decentralized nature. The currency is not issued by a Central Bank or regulated by the government. They have the free will to develop without regulatory supervision. It has been the key to its innovation and anonymous users that increased its usage. However, there is legitimate concern over the decentralized nature of crypto if it were to become mainstream. The elements of decentralization have exposed the crypto industry to scams, speculation, and market manipulation. Investors may not have as much protection over their assets. As portrayed by the Bitstamp survey, the key barrier to crypto investing is confidence and trust in its regulation. Regulations are critical for the cryptocurrency’s long-term success. It ascertains investor confidence, market stability, and a safe ecosystem.
Several governments are proposing regulation measures for the industry. The EU parliament voted for new traceability rules for crypto providers. They are to collect information on the users of their platforms and exchanges who hold crypto. It was met with concerns by crypto users regarding the privacy that is associated with crypto. It shows that what the regulations should entail is still up for debate.
Uncertainty over the content of regulation is causing a lack of international cooperation. Each country is likely to provide its own regulations. Central banks of countries are also considering their own digital currency(CBDCs). It should assist in monetary policy changes and improve global financial health. The adoption of CBDCs ensures a decreased cost of transfer of fiat currencies between banks, consumers, and companies. An international monetary policy on these digital currencies will have more progress for global commerce.
Banks must develop financial instruments around crypto. JP Morgan is developing a structure around this by investing in the blockchain. It is developing digital coins and having investments in the metaverse.
Crypto is a viable medium of exchange that is penetrating the mainstream. Increased adoption is critical in reducing its volatility. There will inevitably be increased adoption. Those that position themselves will benefit from crypto as a mainstream currency.
A Beginners Guide To Cryptocurrency
What Is Cryptocurrency?
Cryptocurrency is a decentralized currency which is a digital asset. In crypto, all transactions are highly encoded. It is where its name originates. The encryption makes the transactions secure. The main difference between hard currencies and crypto is that crypto is not controlled by a central body or authority while hard currency is. Cryptocurrency is equated to valuable metals like gold and silver. Something else to note is that crypto is limited in number. Powerful computers crack difficulties. It is the process used to create cryptocurrency through mining. The powerful computers make transactions which are beneficial to the crypto market. After every transaction, a new cryptocurrency is introduced into the crypto market.
Most cryptocurrencies control and record their transactions through blockchain. It is crucial since it enhances the security of your investment. It happens as a result of duplicate transactions among numerous entities. Blockchain technology has made crypto transactions secure. More investors should take into consideration investing in cryptocurrency.
The Growing Crypto Market
Today the crypto market is estimated to be worth more than $1 trillion. There are thousands of cryptocurrencies. The number is to increase. The largest cryptocurrency in relation to market capitalization is Bitcoin. Bitcoin is followed by Ethereum and Tether. In many countries, now cryptocurrencies are accepted. More countries are to accept cryptocurrency. Some retailers in the US have for some time been accepting Bitcoin as a means of payment.
Even well-established corporations worldwide are purchasing Bitcoin and other digital currencies. Bitcoin came to the surface in 2008 when there was an economic and financial crisis. It was the first cryptocurrency. As the years went by Bitcoin received numerous recommendations from well-established brands like Forbes. That is how it became an attractive asset. Crypto markets are becoming more transparent by the day.
What Economic Impact Has Cryptocurrency Had?
With cryptocurrency being well established today, the economic impacts are visible in international and national markets. The economic impacts are increasing as experts have predicted that in the future, billions will be unlocked and invested in cryptocurrency. The use of blockchain technology is a game-changer. Cryptocurrency is a digital asset which retains its value. It cannot depreciate or lose value as compared to world currencies. Blockchain has improved business practices in numerous ways. Blockchain has helped financial institutions secure transactions. Even messaging services have embraced the technology. They encrypt messages of investors. Governments are using blockchain technology to maintain public records and reduce fraudulent dealings.
Cryptocurrency has impacted the job market too. Since the rise of cryptocurrency, many people have been employed to supervise the system leading to job creation. People have developed companies that deal with trading, thus creating jobs for many people. Professions like software engineering have become more sought after since the inception of crypto. As more countries adopt cryptocurrency, more jobs will be created and positively impact world economies.
The Impact Of Cryptocurrency On World Currencies
For the longest time, there has been a general dissatisfaction with hard currencies due to fluctuation, which has negatively impacted the living conditions of many. Cryptocurrency can be used to evade this circumstance. Another advantage of crypto is that it does not require oversight from the government. Looking at the current world trends today, most people possess a mobile phone while a percentage of people do not have a bank account. For you to operate cryptocurrency, you just require a mobile phone. Since crypto is decentralized, people from different countries can trade freely. Cryptocurrency trading does not also consider the economic level of a country.
Does Cryptocurrency Have Any Transaction Costs?
The transaction costs when trading cryptocurrency is minimal. Cryptocurrencies and blockchain do not require any extra costs you are required to cover. You are not expected to pay any charges whatsoever! That is why Cryptocurrency is the future. You should invest in it. The lack of transaction cost encourages trust in crypto trading. Crypto is transparent and can never be manipulated by people, companies, or the government.
The crypto market has systems to ensure that fraud and corrupt practices are minimized.
Alex Gierczyk is a crypto native, biohacker and serial entrepreneur. He has a background in computer science and finance. Alex attended the University of Notre Dame and dropped out to start his first business. Having generated over $100M in sales, his entrepreneurial experience spans SaaS, eCommerce, wellness, media, NFTs, and DeFi. These include:founding ANG Sciences which became the largest vendor of nootropics in the USA; advising IntoTheCryptoverse, one of the largest crypto youtube channels; acting as the Growth Director of Darkcoin, a privacy focused cryptocurrency which became the third largest by market cap; and mining Bitcoin in 2011. Through building the DeFi money market and undercollateralized loan protocol Tender.fi, Alex and his team aim to revolutionize the sectors of DeFi, NFTs, and the Metaverse to catalyze an enormous boom in the decentralized economy.