The future of Cryptocurrency: When thinking about the present time, the first-ever thought that appears is ‘digitalism’. The very vast form of this technology is digital money, via which you can remotely transfer money from one account to another. Cryptocurrency is such an example of digital money.
Cryptocurrencies are mainly used as a medium of fund transfer, money storage, financial transactions and assessment transfer. Cryptocurrencies are popularly known as digital currencies that are based on decentralized networks, as compared via opposing central banking systems.
The Beginning of Cryptocurrency
One of the earliest forms of cryptocurrency is Bitcoin which has been around for more than 10 years. At that time, many people asked, what is the function of cryptocurrency?
Now that the public is aware of technology, many predict cryptocurrencies will replace paper money in the future. However, there are also some opinions that say that Bitcoin is only used by certain groups and will not be able to reach the general public. With these two different opinions, what is the real future of cryptocurrency itself?
Why Should one consider Cryptocurrency?
For online transactions, banks still act as bridging parties for payments between sellers and buyers via the internet. Regarding this, there are no obstacles for those who use online banking or money transfer.
But what about buyers who want to transact online but cannot open a bank account. Cases like this often occur in poor countries where banking systems are still immature, as well as certain circles from developing countries. There are countless people who suffer from these problems.
Benefits of Cryptocurrency
The main benefit of cryptocurrency firstly is to eliminate the centralized banking system, by which every transaction is performed under the bank’s supervision, so the first-ever benefit that cryptocurrency possesses is to substitute the centralized banking systems.
Thus, the buying and selling process becomes simpler and can reduce transaction costs through banks that are charged to buyers. Below are a few merits that are gained by Cryptocurrencies :
- No need for a third party intermediary
- Trade has a higher power of autonomy.
- There will be no frozen accounts.
- There will be no brokerage fees.
- Customers had the merit to have privacy protection.
- The user can easily make transactions worldwide through currency exchange rates.
- Lesser chances of fraudulent transactions.
Criticism of Cryptocurrencies
Although users continue to experience growth from year to year, cryptocurrencies such as Bitcoin have only reached a limited circle. There is still a lot of criticism leveled at cryptocurrencies and their future uses. Bitcoin is still the most popular cryptocurrency. But the value of Bitcoin can decrease with the emergence of other alternatives whose value is increasing.
Other than Bitcoin, there are numerous other Cryptocurrencies approx more than 500, that have been developed to date. Some that are gaining popularity are Ripple, Litecoin, and Stellar. The basic value of pure cryptocurrencies is only the buying and selling power. This is what makes the value of cryptocurrencies decrease drastically every day.
Rise of Bitcoin Competitors
As the first cryptocurrency to emerge, Bitcoin automatically became the most popular in its realm. Thanks to Bitcoin, people are starting to understand the complexities of cryptocurrencies and blockchain in general.
A system that is widely used over any network via any recording system or database is Blockchain. Over time, many Bitcoin competitors emerged that we’re able to offer better features. One of them is Ripple. Ripple is considered capable of demonstrating the true use of blockchain to users. Because of these advantages, Ripple not only attracts institutional investors as a cryptocurrency but as a blockchain formulation in everyday life practices.
Future of Cryptocurrency
There was once a time ever when people had almost no interest in these coins, due to only the unavailability of digitalism. But ever since the dynamic uses going increasing by the increasing order of digitalism. Now almost there are 13,000 shops excluding outlets that receive payments through bitcoin, so we can predict where the growth of the future of bitcoin and Cryptocurrencies.
Though their future is uncertain and it is unbelievable that the whole world depends upon cryptos, it needs to be more developed. But still, there are higher chances of including cryptos for being a new payment method.
However, to reach the financial world broadly, cryptocurrencies are considered to be at a very early stage. However, the large number of people’s interest and attention to cryptocurrencies is a positive signal for sustainability in the future.
Improvements Cryptocurrencies Should Make
Considered a digital transaction in modern times, cryptocurrencies still have to improve themselves in various aspects. Over time, cryptocurrencies should be able to increase their usefulness as a transaction platform. Many companies and developers are looking for a decentralized platform with blockchain as the basis. Seen from this point of view, of course, cryptocurrency has a bright future if it is able to develop its services.
So how was our article? We hope our new collection of cryptocurrency might be useful to you and by our article you would have gained for the future of Cryptocurrency. So stay tuned for our next article.