Cryptocurrency is the Financial Market of the Future
There are a few apparent reasons why cryptocurrency is so beneficial for the world as a whole. In addition, some core characteristics really take the cake and continue to solidify itself as a financial market of the future. First and foremost, let's talk about the transactional benefits of crypto. Accessibility to the world's financial market has been a limited space for many people around the globe, as only developed countries were able to really capitalize on it. Furthermore, it all relied on the fiat currency that's used in your country.
With cryptocurrency, not only is it a good option for investments, but there are thousands of coins with their own values in the market. Currently, we're seeing more companies, organizations, and governments adopt various aspects of cryptocurrency. Some have added Bitcoin as a verified payment method for goods and services. It's clear that if some of the most influential companies and organizations are adopting cryptocurrency like this, it will make a much more significant impact as time goes on.
Moving forward, crypto also brings us DeFi (decentralized finance). This was created to act as a term for financial services operating within the public blockchain network. In regard to banking services, DeFi can offer nearly any service that a bank provides without the central authority, lengthy paperwork, or intervention from an external power.
To be simply stated, cryptocurrency can do everything our banking system can do and more. Not to mention it's much safer, more accessible, and a more straightforward process overall. Governments were initially scrambling to try and squash the influence cryptocurrency has. Now that they understand this isn't going to happen, they've resorted to punishing their citizens through strict laws and regulations that hinder the potential of the new financial market.
No matter how much regulation is in play, it’s still an entirely digital asset and will remain volatile with vast amounts of opportunity. This could easily lead us to a future where our traditional banking system has no place in the newer financial market. Of course, that would take quite a bit of time, but it’s hard to see how the standard financial system will be able to hold up as more and more people lean towards cryptocurrency for their spending, investments, and even savings.
Cryptocurrency will continue to receive unsavory news as skeptics still believe it’s just a fad. You can either walk in disbelief or get a head start on what’s considered our modern-day gold rush. This financial market will slowly start to replace old financial systems, and it will only take a matter of time.
A Brief History of Cryptocurrency
There are many varying events that led up to the official beginning of the cryptocurrency we know today. Many crypto enthusiasts will know the name Satoshi Nakamoto, the creator of Bitcoin. All the way back in 2008, Mr. Nakamoto created Bitcoin as a peer-to-peer digital cash system. The idea of digital currency has been tossed around since 1998, but Satoshi is considered the Father of Bitcoin.
One of the initial issues with cryptocurrency was how to track double-spending, considering it wasn't a tangible asset. For years now, blockchain technology has kept a record of every transaction for each cryptocurrency, which is a significant factor in why no central authority is needed, such as a banking system. In Bitcoin's early stages, it was worth mere pennies, and by 2017, it was worth thousands of dollars per Bitcoin.
Throughout the years, before Bitcoin was known on such a broad scale, it used to have a bad reputation as a means of buying illegal products online. This is because of the decentralized nature of cryptocurrency and the fact that it was incredibly hard to track at the time. Although these events did take place, this was never the intention of Bitcoin or digital currency as a whole. Once the Bitcoin boom took place, this gained the attention of the public on a global scale. There were endless news articles about the financial opportunities cryptocurrency had to offer. After the initial growth of Bitcoin became such big news, other cryptocurrencies like Ethereum, Ripple, and Monero started to gain attention as well.
Fast-forward a couple of years, and cryptocurrency is now considered to be the financial market of the future and is on its way to dethrone our traditional banking system. Crypto has come a long way and has been refined quite a bit. Furthermore, much needs to be fixed within the market for crypto to thrive on a global level.
The cryptocurrency market has plenty of supporters and is stronger than ever. Many investors have seen the potential success of crypto portfolios over the last four to five years. The market has been around long enough where it's becoming easier to make accurate market projections. In addition, the volatility and financial opportunity provided by cryptocurrency is something the stock market can't keep up with. Both may have their purposes, but it's becoming apparent that cryptocurrency is here to disrupt how the world's finance system works.