Over the recent years, cryptocurrency has garnered significant attention from praisers and critics alike. The debate of whether it features a promising or a bleak future is ongoing. However, recent advancements in cryptocurrency are inclining toward the positive.
While the history of cryptocurrency dates back decades, it has recently started making significant digital advances. Here are some stats that explain why both private and public sector organizations are becoming increasingly receptive to the idea of adopting cryptocurrency for their transactions:
What is Cryptocurrency?
Cryptocurrency was brought to life by blockchain. Blockchain, in simpler terms, is a decentralized ledger containing several transactions taking place across a peer-to-peer network. The technology eliminates the need for a central clearing authority by enabling users to confirm transactions independently.
By this definition, cryptocurrency is a medium of exchange, like your country’s currency. The only difference is that it is digital, and its monetary units are created and controlled using encrypting techniques that enable a user to verify the exchange. Today, Bitcoin is the most well-known cryptocurrency on the market.
- The cryptocurrency market will showcase an annual growth rate of nearly 13% by 2030.
- The global cryptocurrency market capitalization is $2.21 trillion.
- The average daily trading volume of cryptocurrency is $120 billion.
- 43% of Americans aged 18 – 29 have used cryptocurrency.
- 32% of small businesses in the US accept cryptocurrency.
Important Reasons – Why Cryptocurrency Is The Future Of Finance
These stats explain why several financial institutions are exploring how blockchain technology can benefit them. Here are seven reasons why cryptocurrency is the future of finance:
Cryptocurrency Has A Variety Of Values
Cryptocurrency does not have an intrinsic value. However, you can calculate its value online using authentic websites featuring a trusted bitcoin calculator that can convert BTC into fiat currencies instantly. The value of a cryptocurrency can be define in the following ways:
- You can use stable cryptocurrency coins to be associate with gold, oil, or your country’s currency.
- Make payments using cryptocurrency without the involvement of a trusted third party.
- You can remain anonymous during cryptocurrency transactions.
- Use cryptocurrency as a store of value as it is a medium of exchange and possesses a unit of account.
- You can enter the financial system with cryptocurrency without being associate with a traditional bank.
Business Authorities Have a Massive Interest
Several corporate figures have endorsed cryptocurrency over the years. The first person to publicly support Bitcoin was an American entrepreneur and business executive, Michael J. Saylor. He is the co-founder and leader of MicroStrategy, a company that provides mobile software, business intelligence, and cloud-based services.
Saylor applauded cryptocurrency and called it superior to cash. His words generated a snowball effect with several people and institutions looking to get involve in the world of cryptocurrency.
Several Big Corporate Players are Participating
As cryptocurrency becomes a promising and acceptable financial system, more and more private and public organizations are developing a keen interest in technology. From national central banks to institutional investors to technology-focused corporations, institutes worldwide incorporate cryptocurrency in their operations.
In addition, new regulations and policies are being put in place to normalize cryptocurrency exchanges in the future. Here are several big players in the corporate world that have shown a significant interest in the cryptocurrency realm:
- Tesla – Elon Musk, the world’s richest human and the CEO of Tesla, recently made the headlines for buying $1.5 billion worth of Bitcoin for Tesla and announcing that customers can purchase vehicles from the company using Bitcoin. His action led to the institutional acceptance of cryptocurrency.
- PayPal – PayPal has a history of promoting the action of simplified transactions across borders within minutes since its company’s objective stands for this goal. When Paypal enabled consumers to make transactions using cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, it made sense.
- Visa – Visa publicly endorsed cryptocurrency by enabling its users to make transactions using stablecoins on the Ethereum blockchain.
Remarkable Transactional and Banking Benefits
Cryptocurrency’s technique and technology present a much more dependable and stronger financial system than conventional banking. Here are some of the reasons why cryptocurrency is the future of finance is introducing to the banking system:
Privacy
Cryptocurrency’s anonymous transaction system features a technique that ensures data protection. However, the security features of this technology depend on a method that hides important information from unauthorized personnel.
Security
Cryptocurrency transactions are permanent, meaning they can’t be forge or alter. It makes this financial system a highly secure network of transactions.
Access and Efficiency
Several people cannot access formal financial services due to a lack of personal identification, account operating funds, and proximity issues. Crypto helps this large population enjoy financial services with fast processing, easy instant access, and lower transaction costs.
A Viable Form Of Business Payment
Crypto does not have an inherent value; it derives its value from the world’s status of it. Financial experts explain that fiat currencies available worldwide are no different. Since their value is maintain against a relatively finite supply of gold, which is deem valuable.
Cryptocurrency enables you to maintain an offline wallet using which you can instantly transfer coins worldwide. The change in demand will impact the overall value of the cryptocurrency, making it a popular means of conducting business payments. Businesses having employees worldwide can pay their widespread team using cryptocurrency.
This means without having to convert their money into several relevant international currencies. The technology can make transactions across borders fast, easy, transparent, and cost-efficient.
Interest In Decentralized Finance (DeFi)
The world showcases a prominent need for a transparent, secure, and accessible financial system that makes cryptocurrency relevant. As more centralized financial systems fail to provide financial freedom and credibility to users, decentralized financing systems are gaining popularity.
Decentralized Finance (DeFi) is an emerging financial technology featuring secure distributed ledgers, similar to ledgers used by cryptocurrencies. Investors, traders, borrowers, and lenders are looking toward DeFi to advance today’s financial system rapidly. The demand for DeFi systems is increasingly raising the demand for cryptocurrency exchanges. Cryptocurrency is the future of finance and money trade.
Method Of Crowdfunding and Raising Capital
Online platforms are actively make use of to raise money for various objectives. You can use cryptocurrency for fundraising transparently. A dedicated blockchain wallet for crowdfunding can keep donation channels open for individuals for a long time and accurately calculate the number of donations. It can also enable individuals to avoid deducting fees from third-party platforms.
Conclusion
cryptocurrency is the future of finance spectrum seems promising. By eliminating the need for a trusted third party to check, verify, and authorize transactions, cryptocurrency has brought a revolutionary change in the conventional mode of financial systems. With rapid technological advancement, more and more public and private institutes will continue to accept and regard cryptocurrency as a viable financial system. It will be interesting to see how the future of cryptocurrency unfolds in reality.
