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The last few years have been a breakout period for crypto. Although many of its issues require further study, its ability to disrupt traditional financial systems remains strong. The champions of digital currencies predict that cryptocurrencies will soon take over the financial world. However, mainstream economists are skeptical about crypto and its ability to replace traditional currencies effectively.
Which industries have accepted crypto?
While some financial institutions have accepted and integrated blockchain technology in their transactions, others view this technology with disdain. However, a perfect example of an industry embracing crypto is the online casino space, where players benefit from anonymity. Due to the increased demand of cypto casinos, site such as cryptogmblr.com help visitors navigate the ever growing playfield. The growing interest in cryptocurrencies among individuals, institutions, and governments positively impacts their usage.
Countries embracing crypto
Central banks around the globe have commissioned research and pilot programs on digital currencies. Similarly, some countries like the US, Canada, European Union, El Salvador, and Australia positively approach digital currencies. Others like China, Vietnam, Ecuador, and Bolivia have banned the use of cryptocurrencies. China is even cracking down on the bitcoin miners.
Considering the above factors, we wonder if cryptocurrencies will take over the world’s financial systems. If the answer is affirmative, when will the total takeover happen?
A recent crypto survey suggests a fifty-four percent chance of bitcoin surpassing other currencies released by central banks globally by 2050. According to the Finder report, twenty-nine percent of the fintech specialists see the complete takeover by 2035. The most-traded crypto, bitcoin, is expected to be priced at $150,000 by 2025.
Volatility
The volatility of cryptocurrencies has made potential investors to shy away from dealing with them as they prefer calm markets. For Instance, bitcoin lost over 80% in value between December 2017 and December 2018. Major hacks in Japan and Korea and crackdowns by some governments adversely affect the stability of cryptocurrencies. China banned bitcoin in 2013, leading to an overnight 50% loss in value.
Experts urge that cryptocurrencies are currently undervalued and will continue to rise in value before stabilizing soon. Stabilization will increase investors’ confidence, ultimately improving the penetration of crypto in the global financial systems. The Finder panelists predict that crypto, especially bitcoin, will store value as its value, age, usability, and trust increase. The experts further suggest that bitcoin will replace gold as the secure form of storing assets by the end of this decade.
Additionally, crypto adoption continues to spread as more countries adopt a soft approach towards blockchain technology. Bitcoin is now a legal tender in El Salvador, becoming the first country to allow it.
Why are people so fond of cryptocurrencies?
Research states there are over 300 million people that use cryptocurrencies today. Even though some countries deem them illegal, they are nevertheless extremely popular. So, what exactly motivates people to trade with these digital assets?
While this is not such a surprising fact, the truth is that cryptocurrencies have quite a lot of advantages/benefits. For starters, they are superior to regular payment methods such as credit and debit cards.
Here’s an example to prove that. When people make a certain online transaction with credit/debit cards, the funds are instantly taken from their account, but it can take up to 5 business days before they are processed and sent to the recipient. Since we mentioned online casinos earlier, they too are a good example of how cryptocurrencies are superior to cards.
When you request a withdrawal with credit or debit cards, it usually takes a couple of business days for the funds to be processed and sent to your account. That is not the case with cryptocurrencies as each transaction is instant. Hence, cryptocurrencies are far more efficient when it comes to online payments.
Secondly, cryptocurrencies are powered by cryptography, which is a method that provides users with a certain level of online anonymity. In doing so, the overall security of the people who are using them is increased and it is far greater than the security that regular payment methods provide.
Next up, the blockchain is a decentralized network that cuts off middlemen in all transactions. Hence, users often skip added or hidden fees that are added by these middlemen. In a way, crypto users save money when trading.
Finally, the chance to make a profit is always there. According to statistics, there are 100,000 millionaires in the world who managed to make their fortune by trading these digital assets. Trading and making a profit is currently the biggest reason why so many people are looking to dive into the crypto world.
Thanks to these advantages, numerous countries and industries are looking to adopt cryptocurrencies, as it was mentioned earlier. The benefits of these digital assets favour both parties in a transaction and hence, everyone is open to using them.
Is the world educated enough on crypto?
Education will also play a key role in accelerating the crypto takeover of global financial operations. Disseminating the correct information about cryptocurrencies in the mainstream and other media will be vital in popularizing their acceptance and usage.
Despite the rising popularity, some analysts argue that the future of cryptocurrencies in the global markets is dim. Experts predict that central banks worldwide will roll out their digital currencies by the end of this decade. According to Jerome Powell, US Federal Reserve chairman, “Cryptocurrencies are not a viable payment option”. According to him, the US is researching whether the Fed should establish a digital currency. A recent survey conducted by the Bank for International Settlements shows that 86% of central banks are currently evaluating central bank digital currencies (CBDC).
Cryptocurrency’s future is the subject of debate. Proponents see unlimited potential, while critics view it as risky technology riddled with uncertainties. However, both parties agree that there are many areas where crypto is the most viable option. Factors that will hasten full adoption of the crypto in global finance are increased education to the public, stabilization of the crypto, and acceptance by the authorities. No one can authoritatively state if crypto will take over the world and when that will happen.
