The cryptocurrency market has had a phenomenal decade. It went from something 90% of the population have never heard of, to something that radically changed the world’s economic landscape. The changes crytptocurrencies brought however, are a notion that the future of currencies does not lie in fiat.
People are massively investing into many cryptocurrencies because the majority of the world is now aware of the massive flaws of the current financial structure. Fiat currencies have unquestionable failed to withstand the test of time as every single fiat currency in existence without exceptions has lost its value overtime to the point it reached hyperinflation.
The United States dollar for instance, has lost more than 90% of its value in the last 100 years. This means the purchasing power of US citizens has decreased by the same amount in just one century. Now, the fiat currency itself is not responsible for the lost value. The central banks and corrupt leadership however, have managed to drive the once mighty currency to its knees via endless money printing and debt.
The debt pyramid schemes, which include everything from student loans to medical care and pension plans are the primary reason why so many people began investing into cryptocurrency. Before, people had a few alternatives, but they were mostly stocks, bonds and precious metals. Most of these are quite expensive and will almost never fast and large gains.
This all changed when cryptocurrencies came into the scene. Fortunes were being made overnight and just as much money was lost on bad decisions. Due to the markets’ extreme volatility, many people tried their luck and still do to this day. With the countless opportunities cryptocurrencies offer, they are without a doubt the monetary system of the future. Mass adoption however, is still far away.
Cryptocurrency as the Main Currency
Do you know cryptocurrencies evolved into a global manifestation during the discussion that they are exploring to take over conventional currencies in the future? We can't deny that recently, the worldwide interest in cryptocurrency has been on the rise. Especially Bitcoin. It is noteworthy that it is essential to understand the foundation of this and all other kinds of virtual currencies.
Bitcoin and the others are all established on encrypted cryptographic algorithms. This gives rise to the currency decentralized. The user is the absolute owner. These can be bought by a Bitcoin ATM or an online exchange. The adoption of cryptocurrencies proceeds to increase somewhat as a result of global advancement towards a cashless society.
Cryptocurrency is the main currency because of its leading properties. Cryptocurrency arose as a digital option to more conventional means of exchange, such as credit cards or cash. The currency has also produced other different perspectives. Cryptocurrency is vastly approved. A confirmation of suggestions that cryptocurrencies could be long-term currencies is the fact that a lot of people, currently trade through digital money. Nonetheless, given the powerful resistance from regulators globally, it will drive it slow before they discover their path into the mainstream area.
Initially perceived as havens for thieves and scammers, crypto has come a long way afterward. This is due to fame and advancement in technology, making it the main currency. It is projected that the market cap cryptocurrency market cap has got as high as $1-2 trillion in 2018. A lot of people confirm that the technology underlying cryptocurrencies possess great applications in diverse areas, going from healthcare to media.
One of the reasons cryptocurrency is perceived as the main currency is its better liquidity. What is liquidity? It is the measure of how fast and simple a cryptocurrency can be exchanged for cash, devoid of influencing the market price. It is quite essential because it gives rise to improved pricing, instant transaction, and higher accurateness for technical estimation. The cryptocurrency market is perceived as liquid due to dispersed trades across numerous exchanges, which implies that comparatively small transactions are capable of greatly impacting market prices. This is one of the explanations for why cryptocurrencies are very volatile.
Cryptocurrency is considered to be the main currency for different reasons. One of which is that the market is always ready to transact throughout a day, throughout a week due to its decentralized nature. These trades are carried out between people, cryptocurrency exchanges globally. Cryptocurrencies have the power to go short or long. What does this mean? When you purchase a cryptocurrency, you are buying the asset upfront with the expectation that it rises in value. However, when you perform transactions on the price of a cryptocurrency, you are enabled to maximize markets that are declining in price, and also those that are rising in price. This is inferred to going short.