Why are cryptocurrencies the future? Because cryptocurrencies are considered one of the most important technological advances of the last decade, they are the future of a world with a free market, without government restrictions or central banks.
Cryptocurrencies or digital currencies are a type of currency used to buy products and services, like any other currency, but they only exist in the virtual world.
Bitcoin was the first cryptocurrency to be traded: it was in 2009 and its value was approximately one dollar. Since then its price has revalued and multiplied.
Are cryptocurrencies legal?
Cryptocurrencies continue to be in the eye of the storm. Although they have been on the market for several years and their use has increased over time, they belong to a decentralized system, which makes their regulation controversial worldwide.
In some countries, such as China, they are totally prohibited, but in the case of El Salvador, their approval made them the legal currency of that country.
While cryptocurrency legislation is still in its infancy, important steps have been taken in recent years.
Why are cryptocurrencies the future?
Currency exchanges have always existed in human history: gold replaces barter as the currency for transactions, banknotes replace gold as a means of storing value, and cryptocurrencies are about to replace paper money.
The economic crises of countries force their inhabitants to look for options to avoid affecting their patrimony. All of the above also means that those who have invested and make 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 faster and more agile way,
With their success, cryptocurrencies have attracted many critics. More and more companies are accepting cryptocurrency payments and there are even those that rely entirely on this method of payment.
It has been seen that the global economy was hit by the coronavirus. Therefore, we can say that cryptocurrencies will not disappear and their upward movement is not over yet.
What factors influence the future of cryptocurrencies?
Although there are trends in the economic world that suggest our transition to a crypto-oriented economy, people’s traditional skepticism will serve as a major obstacle to overcome.
In addition, there are other factors that play a decisive role in answering why cryptocurrencies are the real future in the global economy:
1. Number of transactions and volumes grows daily:
The market capitalization of cryptocurrencies has increased considerably in the last 12 months and the volume has multiplied.
2. The cryptocurrency market is being regulated.
It can be said that cryptocurrencies are being accepted more and more frequently and that clear sets of rules are gradually emerging.
3. In the digital era, cryptocurrencies would be the logical step in the development of money.
Money is changing, after the pandemic there were many advances towards the technological world, companies were forced to develop pages, to be able to sustain themselves. And in the digital era, cryptocurrencies are the next logical step in the evolution of money.
4. Adoption by the best
The growing interest of large companies may be one of the key factors driving the development of cryptocurrencies.
Risks when using cryptocurrencies
economic experts warn of the volatility of cryptocurrencies, whose value can change rapidly in a very short time and can also cause losses in the millions.
Cryptocurrencies still face many challenges that need to be solved. These include high energy consumption, transaction speed and cybersecurity risks.
The high number of daily transactions in these assets points to cryptocurrencies being the future of money, making the idea of widespread adoption more realistic.
The views and opinions expressed herein are solely those of the author and not necessarily those of Bixxus. Your cryptocurrency investments involve risks and you should do your own research.