These are virtual currencies designed to use a medium of exchange. Two decades ago, nobody would have ever thought that there would be a day when people would be investing in assets that don’t exist in real life.
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The popularity of Cryptocurrency has risen to the point where 2.9 million out of 5.8 million Americans alone have invested in Cryptocurrencies.
Cryptocurrency was first introduced in 2009 as a decentralized currency. The core idea of this currency was to offer a medium for transactions where the sender and receiver can act independently without any intermediaries.
The initial years were dry as people were not ready to accept this technology. However, with time and technology, this changed. Soon people started realizing its potential as digital gold.
As its popularity rose, its price started hitting the ceiling.
The Evolution Of Cryptocurrencies
In recent years, Cryptocurrency – in particular, Bitcoin – has demonstrated its value by making hundreds of investors millionaires. Currently, experts believe that there is more than 14 million Bitcoin in circulation.
According to experts, the current market capitalization we are experiencing is solely because of the future possibilities. The Cryptocurrency market is not only about trading and investing; it has become an industry itself.
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That means the people who are inherently associated with it are also looking forward to how this technology will evolve in the future.
Out of all the technologies used in the Cryptocurrency market, Blockchain Public Ledger technology has the potential to disrupt several economies for good.
In our eyes, we see this market with full potential. However, the evolution to reach its full potential will depend on a selected few key components.
Keys To Cryptocurrency Market Development
Like most things in life, you create something new and unique. Then you realize it’s copied. The same thing happened with bitcoin (The First Cryptocurrency) when it was introduced in 2009. Most people were not that welcoming, but the individual who saw the potential wanted to join the bandwagon.
Hence, they created their own Cryptocurrency to compete. As of now, there has been more than 5000 Cryptocurrency introduced in the market. But only a selected few were able to make a name for themselves.
As we were saying that the evolution of Cryptocurrencies will depend on key components, the components we were talking about are given below.
Consumer & Merchants
The evolution of Cryptocurrency depends on consumers and merchants. If the consumers are willing to use Cryptocurrencies to make payments, merchants will adapt to the new form of payment to boost their business.
Even though Americans are well aware of what Cryptocurrencies are all about, Citizens of other nations still need the right education.
Inventors generally appear to be confident about the future potential of Cryptocurrencies. Not because of trade but because of the inherent value of the industry.
With more fluid regulation, institutional investors are now willing to Invest in Defi Crypto and pointing to our resources. You can consider this as a positive sign on the road toward evolution.
Traditionally banks have connected people with money to those who need money. While it was a great initiative to offer help, the position of middleman has been greatly diluted in recent years. This is why the traditional market has come up with internet banking.
However, with Cryptocurrency, people will no longer need any intermediaries. They can simply send money to the receiver without asking for permission or authentication.
Regulation is one of the major challenges Cryptocurrency needs to overcome in the coming years. Unfortunately, the government’s attitude has never been consistent regarding cryptocurrencies. Some governments have strict regulation policies, while some freely allow their citizens to trade in digital currencies.
If this regulation can be standardized, we can see Cryptocurrency evolving and expanding to every corner of the world.
So how do things stack up for you? The first thing to notice is that we don’t have any medium to transact in real-time instantly. So, if you are looking for a payment method without any intermediaries, Cryptocurrency is for you.
Yes, the market is uncertain because of uncertain rules and regulations around it. But this is an industry that is an infant compared to the traditional finance system. So we just need to give it enough time to grow.