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The impact and future of cryptocurrencies

The impact and future of cryptocurrencies

future of cryptocurrency

 

With the approach of cryptocurrencies, the economy started to change, as they were presented as an alternative to the old conventional system.

Cryptocurrencies continue in the eye of the hurricane. Although they have been on the market for many years and their use has enhanced over time, the truth is that their defenders are equal in number and passion to the detractors of the system. Among the previous are renowned economists and financial system authorities who distrust their seriousness, since they believe that because they are in a decentralized system, which is not regulated by a public body, they can be lent for money laundering, to finance illicit activities or else to evade taxes.

future of cryptocurrencies

 

But let's go by part What are cryptocurrencies? They appeared for the first time in 2008, in the midst of an economic crisis, when currencies from different countries faced a strong devaluation, at a time when investments and capital also suffered strong blows. The creator of bitcoin currency, the digital cryptocurrency par excellence, is Satoshi Nakamoto, a programmer who launches this virtual currency, which works on the internet. Of course it is not a physical currency, but a system based on mathematics and cryptography, and which is made up of digits only.

And the fact is that we like it or not, with the approach of cryptocurrencies the economy started to change, since they were presented as a brilliant alternative to the  old conventional  financial system, and had the attraction of not being subject to any central or public body: it works by supply and demand, is not linked to the formal financial system, to any central bank or to a government.

All of the above also sources that those who have got invested and made their transactions in cryptocurrencies do not require intermediaries and therefore do not have to pay commissions, they make the transactions they want from their computer in a more agile and fast way, since -I insist- there are no intermediaries, rules, costs, fees or anything like that. Then the transactions are done one by one, and each party has a virtual wallet from which the bitcoins are sent or received.

It is said that there are some 21 million bitcoin coins in circulation, although there are other virtual currencies, although less famous, among them ethereum, litecoin and ripple. Experts predict that the daily use of bitcoin will grow by 363%, to 175,000 million in 2027; which means that it will become a third of the total of digital currencies. We keep asking ourselves, why so much attention in cryptocurrencies? For many reasons.

future of cryptocurrencies
 

First, due to the high performance that bitcoin has achieved in some moments, and only during the last year it has achieved a considerable rise, just a few weeks ago it had a strong increase in its value, reaching more than US $ 7,000 for a bitcoin , which has meant that not only investors try to get them anyway, but also that the financial economic system and the provide  more interest there.

With the data exposed, there is nothing left but to recognize the impact of bitcoin, a currency that became powerful, and that many already use to carry out their transactions. Now, nothing is as easy as we think.

Not everyone can trade in this market. Whoever wants to buy, sell or issue a bitcoin must be an expert in technological and computational issues, since it is a transaction that requires a higher technical level, understanding and patience, as it is a complex and difficult task. Perhaps for the same reason, it is that it has been pointed out that the programmers of this system have carried out and reviewed, through different mathematical algorithms, the security of the system at the time of carrying out transactions.

important fact for the confidence of those who got invest and purchase or sell with cryptocurrencies.

With all the above, the call is to be attentive and be cautious. On the one hand, we have that there are already financial institutions that have already accepted these cryptocurrencies, such as FalconPrivate Bank or Saxo Bank, which already has bitcoin on its trading platform. There are also huge companies that have included it as a source of payment. . However, in the face of this boom there are also voices that warn and affirm that it is a "possible bubble", so it is recommended to have some prudence when investing in them, since they are still young currencies, which have arrived the minute they may experience the cost of being a system without any regulation.

Most likely, cryptocurrencies are here to stay. Undoubtedly, it is still a system that needs time to establish itself and gain the trust of the vast majority. If they are going to play a relevant role in the world economy, only time will tell. 

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