Is Cryptocurrency the Future of Finance and Money

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Written by Quentin Hack

Cryptocurrencies have been on a steady growth for the last decade, but in the few last years, they have managed to reach the stratosphere of finances. Even those who have been skeptical about crypt have been jumping on the bandwagon as the prices of Bitcoin and similar cryptocurrencies are on a constant rise in recent months and years. If you haven’t been watching closely the number of a transaction involving crypto grows on average 60% a year. This is why both small and large investors have been heavily investing in assets such as Ripple, BTC, Ethereum, and Litecoin among others. This industry is growing each day and in the near future, we are going to have many more massive players. 

Most recent estimates tell us that the crypto industry is worth more than $200 billion. While cryptocurrencies, as we know them today, have been around for little more than a decade many people are connecting the dots and claim that they’re much older. If we take a look back at the 1980s, it’s when cryptography advanced the most and the birth of encryption as we know it today happened. It is thanks to the early days that today we have the network encryption needed for the security of digital currencies. 

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The father of all cryptocurrencies is claimed to be a man named Satoshi Nakamoto, who invented Bitcoin. He is dubbed as a man who mined the first BTC by himself. He managed to do it on a decentralized network and it was easy for similar currencies such as Litecoin to follow its path. Litecoin came in 2011, while Ripple trailed it by one year. With the rise of new currencies, it was easy for BTC to reach the worth of $1000 in only a few years of its inception. Once they became established players on the financial market, Ethereum followed suit more than five years later and came to the market in 2015. 

In 2017, which is one of the crucial years in the crypto universe, there were more than 1000 virtual currencies in existence. It was the year in which the value of BTC crossed the $10.000 mark. During the same year, it went even further and managed to cross the $20,000 mark. This was the time when the world of crypto was still chaotic. Some regulations came our way and the number of digital currencies grew but all of them are now established within the blockchain and various decentralized apps. At the moment of writing this article, we have more than five thousand active digital currencies.  

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When we look at the financial system as it is today, we can argue that crypto is a viable investment. It is not like that only in Defi (decentralized system) but also in regular financial markets. The knowledge of digital currencies is public; all transactions are done through public blockchain which is why anyone can join the party. If we are looking at them through the prism of transparency we can say that they’re even more transparent than some other financial systems. Many advantages come with dealing with crypto and below we are going to discuss some of them. 

By using some of the digital currencies such as Bitcoin, Stellar, and Ripple you can buy various products without a need to rely on a third party to guarantee your transactions. Furthermore, the amount of most digital currencies is limited which adds to their value. With BTC and Litecoin for example, scarcity is crystal clear. Most cryptocurrencies are not tied to any commodity while there are some whose value is similar to fiat currencies and is measured in gold. What attracts some of the investors is the reliance on anonymity which is practically guaranteed with encryption that closely follows the biggest cryptocurrencies. This is what allows the users to remain anonymous to a fault and a certain extent. With digital currencies, it is possible to enter the financial system without a need to rely on a bank. Thanks to traits like these cryptocurrencies like Bitcoin, Stellar, and Ripple managed to parry the existent financial instruments.  

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Virtual currencies such ads BTC managed to become a part of everyday life for many people as they now, more than ever as can be sued as fiat currencies and to some extent easily replace the money. It managed to do this despite the fact it’s not tied to any centralized financial authority. Traits like these are what made it ideal for many public and private investors as a means of investing and earning. Thanks to huge financial interests tied to most bigger cryptocurrencies, today we have massive institutions dealing only with crypto. Some of the biggest ones include Crypto Hedge Funds, Harvard Endowment Fund, Coinbase, and Bitstamp. 

In the end, the thing that attracts most users is the anonymity that comes by being a part of the crypt community which guarantees the safety and security of all transactions and data related to users. It is a secure system, as there are more than a billion users who rely on newly established crypto financial systems which cancel the need for old and poor;y established a system which is getting exposed by the day. The crypt one is safer and it demands less administration to run the way it should. Thanks to it we can witness how the world of finance is changing in front of our eyes.

With all that we aid above, we can without a doubt say that cryptocurrencies are changing the financial world and it is for the better. With the trends that are going around, we can also state a claim that it will continue to do so in the future. You can see this on each corner, and if you are even a little into novelties that are tied to finance and money, you can see this for yourself. This is also a deep subject that can be explored further, and you are free to do so by visiting who is exploring the reasons behind the soaring of altcoins.  

About the author

Quentin Hack