Cryptocurrencies have been at the center of a lot of discourse as of late. While digital money has only sprung to the financial scene relatively recently, only a little over a decade ago, it has enjoyed an influx of popularity like no other asset before or since. Some researchers are incredibly optimistic, predicting that cyber money is bound to become a store of value akin to gold. Indeed, Bitcoin has long been hailed as digital gold due to its scarcity and potential to serve as a hedge against equity risk. BTC displays significant potential for growth, with estimates predicting it is bound to grow to 2.5 times its current value.
Nevertheless, many are still wary of cryptocurrency and its uses. While many swear by the fact that there are significant returns you can expect if you invest in crypto, others warn that the heightened volatility levels and constantly shifting prices make it a holding that is, at least for the time being, too unstable to be part of the portfolio of any trader. And while unpredictable prices are a cause for concern in the case of many investors, itâs also worth mentioning that digital currency trading nowadays is much less risky than it was around ten years ago.
One of the most interesting things about crypto is how exciting it is. Even those that arenât involved in trading talk about it, and thereâs increasing discussion about how the worldâs governments should look into laws and regulations thatâll make it akin to traditional currency. If youâve been considering starting a career as a trader, you might be wondering if thereâs anything more to it. You donât want to invest capital into something thatâs all talk and no action. Letâs examine it a little further.
The Latest Developments
In 2022, the financial market has been under the dominion of a bearish tendency, and yet crypto has remained strong and seen recorded increasing interest from prospective traders. This is all the more justifiable in the context of widespread financial crises and skyrocketing prices. In fact, the early 2020s may be the years set to decisively establish cryptoâs role in the global market and lead the path to massive adoption. In 2021, El Salvador became the worldâs first nation to adopt Bitcoin as legal tender, essentially making it an official currency. While the move has enjoyed limited success, itâs the first step in this direction and one that many other countries are sure to follow sooner rather than later.
Around the world, many other citiesâ names are currently linked to cyber money, earning them the denomination âcrypto-friendly citiesâ. Amsterdam is one of the best examples, with the Dutch capital having over forty places where you can pay for products or services using crypto. Ranging from cafes to bike repair shops, you can request their services after using one of the cityâs half a dozen available Bitcoin ATMs. Rotterdam and Utrecht also have their fair share of locations where you can pay in crypto.
Sloveniaâs capital of Ljubljana has also advanced quite a lot in the field, with over 200 merchants claiming they accept Bitcoin. Tel Aviv, New York, and London feature BTC meetup groups, startups and media companies, and several ATMs you can use. The increased usage of crypto at a societal scale and the fact that several vendors have begun to accept it means that trading in cyber coins is a thing of the future. The world is heading in this direction, and neglecting this tendency wonât do you any favors.
Technological Advances
Technology is at the forefront of development. Over the past few decades, automation has grown progressively, transforming society in virtually all areas. From creating new jobs and making existing ones less taxing by removing extraneous tasks, improving food safety, contributing to better sanitation and higher living standards, making education and healthcare more efficient, and providing us with engaging and exciting forms of entertainment, there isnât much it cannot do.
Blockchain technology is one of the latest developments, but according to estimations, it is set to change the world. When you check the Bitcoin price USD before conducting a transaction, you must be aware of all the computational power that goes behind it. BTC exists on a decentralized ledger; although you buy and sell, the coins are never physically in your possession. Your Bitcoin remains connected to the blockchain.
This is the same tech set to revolutionize everything and has already taken the first steps in that direction. For example, decentralized finances and apps have enjoyed increasing popularity, and while theyâre still not mainstream, theyâre bound to become more popular over the years. NFTs have also made the news with increasing frequency, with hype building around them owing to their scarcity. Unlike other assets, they canât be exchanged equivalently. And since decentralized ledger systems prevent data duplicates, putting an NFT on the blockchain guarantees that thereâs only one existing copy of a piece of digital art.
Logistics and supplies are other areas that could benefit from blockchain usage. It would improve communication between partners, data security and integrity, and more accessible processes that ensure greater trust and accuracy across all areas of the system. While widespread use of the technology is still in its incipient stages, you surely want to feel like youâve directly contributed to the advancement of groundbreaking developments.
Internet Of Things
Weâve already discussed the broad scope of technological solutions, so we canât omit the Internet of Things. While this increased connectivity has made life easier, it is also a gateway for hackers who want to access your data. Your sensitive information shouldnât be vulnerable to attacks under any circumstances, and blockchain technology can ensure that you enjoy greater security by storing passwords and other credentials more securely. Whatâs more, you donât have to be worried about tampering, given that details on the blockchain canât be modified.
Crypto trading is relatively young. The novelty is the root of cryptoâs biggest problem, its relatively high volatility. However, it is also the thing that provides the best opportunities for development. When you invest in crypto, youâre not only creating personal gains but also directly supporting an innovative technology set to revolutionize the world as we know it.
