There’s no doubt about it, cryptocurrency is getting massive adoption worldwide. Crypto has grown in our world and its investors have increased despite it being in its infancy stage.
There have been issues such as price volatility, hacks, and scams in the growth of crypto yet many are still investing in this digital/virtual currency. The global crypto market is a bit less than its all-time high of 2021 due to the current downturn but still getting people’s attention.
In this article, we’ll see why crypto is becoming popular in our world. Let’s know more about cryptocurrency.
What is Cryptocurrency?
A cryptocurrency is a form of digital or virtual currency, it is a decentralized currency that is not linked to or regulated by any government or central bank. These digital assets are run on a blockchain, which works by adding new blocks in the chain hence the name ‘Blockchain’.
Bitcoin is the most popular and largest crypto today. Its creation has birthed others alike known as altcoins. They were originally developed to provide an alternative mode of payment for online transactions.
Cryptocurrencies are highly volatile which makes it very risky to invest. This is one of the reasons many nations of the world are yet to adopt it. Some of the countries that have banned or restricted the use of cryptocurrencies have seen digital fiat currencies issued by central banks as an alternative.
Why Crypto is Gaining More Attention Worldwide
Cryptocurrency is gathering pace with its use in many parts of the world. Countries are introducing guidelines for the use of these digital assets. Discussed below are the major reasons crypto is gaining more attention worldwide.
1. Benefits to merchants and customers
Bitcoin and some other cryptocurrencies are used as payment for goods and services in many parts of the world today. BTC, for example, is a legal tender in both El Salvador and the Central African Republic. It is accepted by business owners who get paid by their customers.
Many companies in the world also receive crypto for their products and services. Its quick transactions and little /no charges make it a good option.
2. Provide opportunities for Tech Developers
Crypto has provided opportunities for skilled people such as tech developers. Several crypto projects are being developed today. Developers are making ways to make better blockchains than that bitcoin.
With this, many business owners are launching projects with faster transactions, less energy consumption, and so on. As a result of this, there are over 21,000 cryptocurrencies as of writing according to CoinMarketCap.
3. Relaxed Regulations
Governments are already putting in place rules guiding the use of crypto through regulatory bodies such as CFTC, SEC, etc. For example, the Central Bank of Nigeria (CBN) gave the order to ban the use of crypto in financial institutions.
Although countries like Russia, China, and a few others were against crypto and its activities such as mining, it has continued to grow in such places with relaxed regulations. El Salvador and the CAR have already made crypto a legal tender in their territories.
4. Crypto and the diversity around
Crypto is not only becoming mainstream but other elements of the blockchain technology where it is run. Metaverse, web3, DAO, Defi, NFTs, and so on are elements of crypto that have attracted investors.
Non-fungible tokens are now an avenue for people to make passive income. Creators are making use of this opportunity to sell their works in (paintings, drawings, music, texts, gifs, etc.) marketplaces such as Opensea, Rarible, etc. to earn big.
These other diversities have made many see crypto as the one for the future. For this reason, crypto is getting wider acceptance.
5. Solution to the existing financial system
Bitcoin was created as a solution to the global financial crisis of 2008. The peer-to-peer features of crypto have made it one to use for many instead of the traditional payment system.
The issue of intermediation is slowly been corrected by cryptocurrency. Crypto through its blockchain technology has been cutting out middlemen that are in control of your hard-earned money.
Crypto transactions are also faster than those done by a banking system with more privacy. This has made much focus on the system that uses blockchain technology rather than the traditional financial system.
Crypto is gaining more attention worldwide for its endless opportunities. These digital assets have grown massively in the last couple of years despite their price fall in recent times.
Cryptocurrency is in its infancy stage and has seen its critics doubt its long existence. Its mass adoption and growth countered this even though time will tell if it will displace the existing financial system.