As the world edges towards digitalization, advancement is fast and unpredictable. This is why it is hardly surprising that the world today has shown remarkable interest in digital currencies or cryptocurrencies.
You might be familiar with them or at least their top player, Bitcoin. Regardless, if you’ve been in this circle for a while, you’d note that they are fast gaining traction in global nations, and crackdowns are also popping up in several countries.
This, though, has managed to simply generate more interest. And, it’s raised the question of whether cryptocurrencies could be that entity to look to in the future or whether investing in them is just a waste of time. Here are a few points you should look at to answer those questions.
Why Do They Seem So Special?
Cryptocurrencies introduced the concept of decentralization to the world. By decentralization, we mean that unlike local or fiat currencies, with crypto, there are no central authorities presiding over flow and circulation throughout the world.
They also brought the power of tamper-proof and immutable ledger systems that gave related transactions transparency and security. Transactions were also made speedy with cryptocurrencies through their background technology, Blockchain technology.
Being digital-based, you can’t find any cryptocurrency in print in any part of the world. So, transactions and their flow is only by mining which in a way can be likened to a physical mine. You need miners and mining equipments like super-powered computers (software and hardware) and finally, technical know-how in the least.
As a Store of Value
Research shows that there is part of the world that lacks interest in banking institutions. Cryptocurrencies are very well equipped to help out in that area. Today, cryptocurrencies are now used as a store of value albeit not exactly stable.
There was a point in 2017 when Bitcoin, for instance, achieved a $20,000 mark. Today, it is valued below $4,000. This, however, does not mean that it can’t rise again. So, by being a store of value, cryptocurrencies are edging towards being a common language spoken in the future, as it seems to create a common ground for interaction between global nations.
And the World Leans Towards the Digital
The world is going cashless and is fast accepting digitalization as its modus operandi. Think back to a time when you had to go through the hassles of long queues to get a simple cup of coffee or a box of pizza.
Today, you can just sit in a room and have it delivered to you. That’s the power of digitalization. Cryptocurrencies embody a future where everything will simply be done digitally and fiat currencies will be relegated to the backseat.
By offering the world the power of tamper-proof and speedy transactions, cryptocurrencies are already becoming a known entity in the payments market. This could very well be just what the world will adopt in the future.