- December 6, 2021
- Posted by: admin
- Category: Blog
Between 2018 and 2020, the number of global cryptocurrency users has increased by 190%, exceeding the 66 million figure. This shows that crypto has now stabilized itself within today’s business landscape and will continue transforming the way we invest and trade goods.
Some investors favor crypto coins due to their ease of use, flexibility, and high potential. Others claim that the key factor is transactional security and the elimination of the middleman. Whatever the reason is, crypto is here to stay; after all, even financial experts now suggest that banks will adopt digital currencies and move away from fiat in the future.
Crypto only entered the market ten years ago, but since then, it has caused a financial avalanche for businesses and consumers alike.
Radical Banking Disruption
Whether we like it or not, the traditional financial system has its shortcomings, one of which is not being able to offer access to capital and financial services to all communities worldwide. Today, more than a third of the global population cannot obtain basic banking services, and cryptocurrencies present a potential solution to this problem, with accessible loans or checking accounts built on the blockchain framework.
Apart from that, the popularity of crypto investments made it clear that the market was ripe for disruption, with the innovation now breaking the long-standing invisible border and opening the door for further market development. In consequence, countries like Australia, Malaysia, Singapore, and South Africa are moving forward with the world’s first cross-border central bank digital currency exchange program to test the use of digital currencies within a centralized structure.
Moreover, El Salvador has officially adopted Bitcoin as its legitimate currency. The Bahamas has created Sand ollar, a digital coin, and China introduced an all-digital version of its paper currency called the e-renminbi to be used by both Chinese citizens and foreigners. In the meantime, the Bank of England and the European Central Bank are also preparing their own crypto trials.
While cryptocurrency regulations are still on the table, the implementation by even the most traditional finance institutions clearly shows that our banking system will be changed forever.
The Benefits of Digital Assets
Although cryptocurrencies can not only be associated with payment systems, they significantly facilitate the acquisition of products and services. Companies like PayPal, Subway, Shopify, Expedia, and Microsoft now accept crypto as a fully functional payment method.
Cryptocurrencies are well-known for their lower transaction fees and speed, no matter the distance between the parties involved. Just in one day, the number of transactions in cryptocurrencies is nearly 8,000,000. All of these happen securely and confidentially on the blockchain network.
Cryptos also have a promising subset: tokens. Among other things, these allow businesses to create attractive loyalty programs so that customers receive rewards for their purchases. Restaurants, game platforms, or even travel sites – such as TripCandy – are using tokens to attract new audiences and allow their customers to “invest” when buying.
Clouds on the Crypto Sky?
From day one, cryptocurrency has had its fans and its critics. Some of the biggest concerns include security vulnerabilities, price volatility, and the lack of regulations. However, with further advancements, the advantages seem to outweigh the drawbacks. After all, there are now almost 6,000 types of coins, making our lives more convenient.
While there will be further issues to resolve, it’s clear that the whole world is now jumping on the crypto bandwagon. For now, the world is still learning about this innovation to understand the scope of changes it can bring. To dive deeper into the crypto topic, explore our blog.