From wild price swings and shiny new coins emerging on the market to technology upgrades, new use cases, and public figures tweeting about different tokens, it seems like the crypto drama never ends. Digital currencies have become the talk of the town, and everyone seems to have something to say about them. So much so that these digital assets have evolved into a thriving industry that, for a short while, was valued at 3 trillion USD, following Bitcoin and Ethereum record highs.
Getting into crypto has also become a lot easier over the years due to the numerous exchange platforms that have simplified the entire process. One can easily buy Bitcoin with a debit card by opening an account on one of these platforms and then placing an order. The fact that you can buy fractions of a Bitcoin also lowered the barriers to entry, so everyone can gain access to the most valuable crypto on the market without having to invest a fortune.
However, it appears that hype and popularity are not enough to convince people it’s worth taking an interest in cryptocurrencies. Not even the massive amounts of money that are being poured into crypto can change skeptics’ minds. Digital currencies are often written off as a fleeting fad or a bubble that will eventually burst and put an end to the craze that has been going on for the past few years. Besides, a lot of people still believe crypto is something that only concerns tech-minded individuals and professional investors and traders.
The fact that digital currencies remain, for the time being, highly speculative assets is a reality no one can deny. It’s also obvious that crypto is a rather complex domain that can be difficult to grasp for those who are not tech-oriented or lack financial knowledge.
But it’s just as true that cryptocurrencies are far from being a niche product. It may have started that way, but recent developments have made it clear that digital currencies play an increasingly important role in the global financial system and can influence our lives in ways that most people have yet to realize.
Everyone should keep a close eye on cryptocurrencies and stay up to date with what’s going on in this space. And if you’re not yet convinced of the importance cryptocurrencies hold, here are a few aspects that might help put things into perspective.
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More than a payment method
One of the issues that crypto doubters often point out is that digital currencies like Bitcoin and Ethereum can’t be used to pay for goods and services the same way as fiat money. While there are certain companies and organizations that accept crypto payments, these cases are rather isolated, making people reluctant to jump on the crypto train.
First of all, we need to point out that Bitcoin and Ethereum are not designed to act solely as a method of payment. That’s just one of the many use cases of these crypto projects, but applications go far beyond the financial realm. They are not just a digital version of fiat money, nor do they try to mimic them. They’re an entirely new asset class with their own features and characteristics and a massive untapped potential.
People need to remember that digital currencies have only been around for a little over a decade compared to conventional assets that have a centuries-old history behind them. We’re just beginning to scratch the surface of what the blockchain technology underpinning digital currencies can actually do.
Therefore, most of the current issues and limitations stem from the industry still being in its infancy. As the industry matures, it’s very possible for cryptos to become a mainstream payment method, so it’s only a matter of time and patience.
Here to stay
Since its inception, the crypto market has been through several highs and lows. All cryptocurrencies, without exception, are subject to volatility, causing massive fluctuations in the market. Although price crashes have had a terrible impact on many investors’ portfolios and might have weakened people’s trust in digital currencies, none of the market dips has led to the demise of the crypto industry. After each period of decline, the market recovered, proving the strength and resilience of the crypto sector.
If cryptocurrencies have made it so far despite the cold welcome, the uncertainty and the numerous ups and downs, it’s pretty obvious they’re not going away. In fact, we have all the reasons to believe they’re going to expand their influence and dominance in the years to come.
If you’re one of the naysayers, you might live under the impression that everyone else is just as skeptical as you. However, reports point out that most people are quite confident in crypto’s future. According to a recent survey, 63% of Europeans trust that digital currencies will still be standing in ten years’ time.
Rising global adoption
For those who think that digital currencies will forever remain on the outskirts of the financial system, we’ve got some news. Cryptocurrencies are already enjoying increased acceptance as a growing number of companies in all industries are changing their financial infrastructure to accommodate crypto payments.
And if this isn’t proof enough that cryptocurrencies are going to play a major role in the future of finance, official institutions and governments around the world are also taking steps toward crypto adoption.
And we can easily understand where the appeal comes from because crypto is a real problem solver. Apart from helping investors diversify their portfolios, digital currencies are also decentralized, eliminating the need for a middleman to handle transactions; they’re safe, universal, offer lower transaction fees, can serve as a hedge against inflation, and ensure greater financial inclusion. Long story short, cryptos are the answer to many of the world’s current problems.
Bottom line
Cryptocurrencies have become a worldwide phenomenon in the short period of time they’ve been around. Their unique characteristics and features have guaranteed them a place in the global financial system, which means they have the power to influence our lives and shape our future. Therefore, the crypto industry is something that can benefit and should concern all of us.
Also read: Different Cryptocurrency Crazes That You Should Be Aware of
