In recent years, cryptocurrency has become global, but there is still a lot to learn about this developing technology. Besides the fact that it became very popular and demanded, its future is not that clear, and there’s still a lot of questions.
It had influenced the financial world and also affected the business sector. People already pay with Bitcoins and with other cryptocurrencies, and the world’s famous companies or individuals are doing trade with that.
Besides all that, there is a lot of research and daily studies about cryptography and its fast-changing characteristics, so there are many predictions about the future of cryptography.
The Present Situation
Cryptocurrency is a decentralized digital currency, not controlled by one company or individual, that uses blockchain technology to facilitate cross-border transactions. The trading is quick, secure, and anonymous.
As of January 2021, there are over 4000 cryptocurrencies, but only some of them are popular and widespread. Some of the most widely-used currencies are Bitcoin (BTC,) Litecoin (LTC,) Ethereum (ETH), Stellar (XLM,) and Cardano (ADA,) among others.
In August 2021, the entire worth of all cryptocurrencies was around $1.9 trillion, down from $2.2 trillion in April.
Why Is Cryptocurrency So Popular?
The popularity of cryptocurrency is not only connected to the fact that it’s new and intriguing. There are many benefits cryptocurrencies provide.
Some researchers think that cryptocurrencies are very prospective and that now is the right time to buy and invest in them because the price will rise in the near future. Also, they don’t have any dependence on traditional currencies.
Cryptocurrencies are independent of banks, which has many benefits. First of all, banks reduce the value of money via inflation. And also, some banks have very high commissions for money transactions.
In the case of cryptocurrencies, there are no banks or any regulating entities that need to confirm the transaction, as well as there are no transaction fees. These transactions are carried out in crypto wallets that have built web applications and other tools necessary to allow their users to send and receive cryptocurrencies safely. These wallets are a key tool for cryptocurrency management, as they ensure the security of your coins.
Each wallet is accessed through an individual key that only you know, and if you lose that key, you’ll lose access to your coins. These wallets also provide real-time support through chatbots and other methods to help you solve any transactional or technical issue you may have.
A large number of crypto trading platforms have also emerged during the last years, allowing crypto enthusiasts to buy, sell, and exchange crypto coins easily. Some platforms are more widely used due to their functionality than others. Kraken, Coinbase, and Binance are the most popular ones. Kraken, in contrast to Coinbase, is made for more active traders, and there are a lot more trading options for its users. And also, Kraken’s interface is more simple for beginners.
The most important part about using cryptocurrency and why it has popularity is that it’s secure and anonymous. It’s a decentralized process that records every action, so it is considered to be more secure than the traditional payment methods.
The Future of Crypto
Today, there are many countries in the world that accept some types of crypto as legal trading currencies. And many people daily invest in cryptocurrencies believing in the myth that it has a promising future.
The USA and Canada have very positive opinions towards Bitcoin and try to make some regulations about it. Lawmakers in Washington, D.C., and around the world are trying to find out how to make cryptocurrency safer for investors and less appealing to hackers by creating regulations and guidelines.
Although, there are many countries that say no to cryptocurrency, for example, Russia, China, Vietnam, and others.
We can only guess what value cryptocurrency will have for investors and businessmen in the future months and years, but the reality is that it is still a new and risky investment with a little history on which to make predictions. No one really knows what future awaits cryptocurrencies.
Liana Grigoryan is a Journalist and PR specialist who is a freelance Content writer now and writes blog articles related to business, finance and other topics like that. I used to write stories for newspapers and magazines, and as I’m open to improving my professional skills and developing as a specialist, I wanted to try my skills in content writing too. You can see the result in my articles.