Future of Cryptocurrency: Promising or Controversial?

Cryptocurrency is a digital currency that has gained prominence in recent years. It is the new financial era and it is not going anywhere anytime soon. In the meantime, there is a plethora of uncertainty over the future of cryptocurrency. It may not be as decentralized as it is said to be.

The cryptocurrency market has been growing in size and at a rapid pace. It is the fastest-growing asset class in history, which grows by over 13% per month since last year. Out of all cryptocurrencies, Bitcoin has been the most popular and it seems like it will stay that way for quite some time. Cryptocurrencies, such as Bitcoin and Ethereum, have been around for a while now and they don’t seem to be going anywhere anytime soon. Cryptocurrency has the potential to revolutionize the way we think about money and the way we do transactions.

Cryptocurrencies are not controlled by any centralized institution, they’re decentralized and use blockchain technology- an open ledger system that is used in many sectors such as banking and trading. Blockchain technology allows cryptocurrencies to be transferred fast with low fees and without needing any middlemen or banks.

Future of Cryptocurrency: Promising or Controversial

Bitcoin whales, or investors who own huge stakes in a cryptocurrency, are said to control its price in the markets. Institutional investors are keen to act and capitalize on the volatility of its prices, even when governments around the world such as Japan have declared it a viable form of payment for goods.   

The point is that Bitcoin has much more room to grow than gold and will continue to raise large sums of money in pursuit of high returns in an era of low returns. Investors may well ponder the fact that bitcoin has not become a medium of exchange for day-to-day transactions, has not proven to be a reliable store of value, and, thanks to the rapid proliferation of cryptocurrencies, does not really benefit from the limited supply. … The irony is that speculation could undermine Tesla and Mastercard’s interests in using bitcoin as a medium of exchange. Bitcoin has value as a medium of exchange; Alternative cryptocurrencies could improve the Bitcoin model or have other value-creating uses such as ether. 

In the UK, the easiest way to access cryptocurrency is to buy some of the bitcoins on an established exchange like Coinbase. You can buy products that offer access to blockchain companies – the public and digital ledger that underpins bitcoin – such as the Invesco Elwood Global Blockchain UCITS ETF. However, this is a bet on technology, not cryptocurrency. Cryptocurrencies are usually generated from their own blockchain like Bitcoin and Litecoin, while tokens are usually issued under a smart contract running on a blockchain like Ethereum.

The largest cryptocurrency by volume today is worth 600 percent more than a year ago, rising from roughly $ 7,000 per bitcoin to $ 64,000 this week, making it one of the best performing financial assets of 2021. Ethereum is the second-largest cryptocurrency. and have capitalized on the benefits of the bitcoin rally. Myron Jobson of online investment platform Interactive Investor said that the rise in bitcoin prices has made Argo Blockchain, a publicly-traded technology company specializing in large-scale cryptocurrency mining, the most bought investment in its market since the new year. 

Polls show that up to 21% of US hedge funds now own bitcoin in one form or another. When Fidelity announced its Bitcoin fund, for example, it also released survey data showing that 36% of institutional investors in the US and Europe already own digital currencies, and 60% believe digital assets belong to their wallets. 

Financial companies, central banks, regulators, system developers, investors, and governments are all rethinking-they should do it-blockchain-based currency technology is changing the way the world around them. In addition to the financial ecosystem revolution, there are several areas in the Bitcoin ecosystem that deserve investors’ close attention. It is a bank without a bank and a bank without money” (Lanchester, 2016, p. 8). Therefore, literally, on the one hand, Bitcoin has interesting potentials worth exploring, as well as the established financial strength. Challenge. 

In all previous attempts to use currency on the Internet — and there have been many attempts — Bitcoin has become the best alternative to society’s collective concerns about the financial system. Bitcoin was first released as open source software in 2009 and was the first decentralized cryptocurrency. The expanded field of blockchain technology-by the way, no one absolutely disagrees with the term-came into being when governments recognized these new cryptocurrencies as taxable and possibly regulated investment vehicles. 

In October 2020, online payment giant PayPal announced that it will allow customers to buy, store and sell a series of cryptocurrencies including Bitcoin, and will also allow them to use Bitcoin for shopping in more than 26 million companies. The financial services giant plans to help its asset management clients use Bitcoin, basically treating it like any other securities. Financial services company MasterCard and Bank of New York Mellon announced new Bitcoin plans to help them cross this important threshold. 

ICO helps companies raise funds to develop new blockchain and cryptocurrency technologies. In ICO activities, a certain percentage of the cryptocurrency (usually in the form of “tokens”) is sold to early project sponsors in exchange for fiat currency or other cryptocurrencies, usually Bitcoin or Ethereum. If new cryptocurrency units can be created, the system will determine their source and how to determine the ownership of these new units. Although the transaction and balance of the Bitcoin account are recorded on the blockchain itself, the private key used to sign the new transaction is stored in the Ledger wallet.

Since Bitcoin’s inception in 2009, cryptocurrencies have been a volatile and controversial topic. Bitcoin was created with the goal of creating a decentralized currency that is not reliant on any government, and it has achieved that goal very well. Governments around the world are struggling with how to regulate or even tax cryptocurrency transactions.

Bitcoins and other cryptocurrencies worth billions of dollars have been stolen from exchanges by hackers.

While the monetary order of the 21st century will be very different from the monetary order of the 20th, bitcoin could help America maintain its economic leadership for decades to come. At its best, the rise in bitcoin will prompt the US to adjust its fiscal strategies. Pursuing bitcoin would also be a huge strategic mistake, as Americans can benefit enormously from bitcoin-related initiatives and decentralized finance in general. Over the next 10 to 20 years, as bitcoin liquidity increases and the creditworthiness of the United States decreases, both financial institutions and foreign governments could replace a growing portion of their Treasury bill holdings with bitcoins and other forms of hard coins.

Trust and trust in bitcoin as a remedy for perceived problems with traditional finance are reflected in popular bitcoin discourses. There is an exaggeration, half-truths, and excitement, and there is a lot of confusion in this speech between bitcoin as a currency, bitcoin as a technology, bitcoin as a free market implementation, bitcoin as a commodity, bitcoin as an investment, cryptocurrency as bitcoin, cryptocurrency in general, a blockchain in bitcoins, or blockchain as a whole. 

Some countries like Zimbabwe and Venezuela have already adopted Bitcoin as their official currency because they can’t afford to print additional cash for their failing economy. Others like China and South Korea, have banned Bitcoin trading because it does not align with their economic goals and ideologies.

There is no one answer to this question of whether cryptocurrencies will be the future of financial transactions or if it will be nothing but a historical footnote.

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