Cryptocurrencies have increased in popularity throughout the past years. This is determined by a number of factors. Most of them are about the efficiency of the currency and quick adaptation to reality. Ever since the introduction of Bitcoin and other cryptocurrencies, they have become some of the most valuable and interesting assets for investors.
The global spread of the use of crypto is a notable feature of the current decade. Already an important locus of entrepreneurial activity, cryptocurrencies can alter the business models of existing actors within entrepreneurial finance and are expected to have significant consequences for business in the relatively near future. Understanding the drivers behind their spread thus far is therefore important to businessmen and investors. This way it is possible to see the full potential and role of the cryptos in the global economy as well as in particular businesses.
So far, everything shows a clear example of fiat, paper money being riskier than digital assets. Comparing the state of the USD asset and Bitcoin during the global pandemic it is very clear that Bitcoin is the clear and obvious leader. The currency did not only survive but tripled in price. This was quite an unexpected move from Bitcoin after the massive decline in price back in 2017.
There are several driving pillars of crypto popularity and adoption in the global economy. Once we discuss some of the most important ones, you should have a better perception of the crypto world.
The growing price
This is one of the reasons, which has already been mentioned above. Because of the decentralized nature of Bitcoin and any other currency which is based on blockchain technology, the currency price can not be controlled or manipulated by any other third party.
While from one side it is definitely good, on another side you can never know what is going and why. At first, the Bitcoin price increased drastically once it was introduced, though then after a massive raise it was dropped to its lowest ever point back in 2017. Now, just a few months ago, it reached its all-time high price, which is over $20K.
The good side is that digital currency is more rigid towards inflation. It does not change with the price changes in the economy. It is not determined by the central banks, and no regulations are imposed against it. Though it might be a bit riskier than the USD currency for example. Yet, the observations prove that the millennials 90% choose Bitcoin over fiat currency.
More and More sites support crypto payment
The first revolution in payment was once credit and debit cards were introduced to society. It took quite a while for people to use credit cards while paying online. The crypto payment also needs some time to be ingrained in the payment methods. Today, way more websites accept crypto payments than they used to even three years ago. The global pandemic has also significantly contributed to this process.
With more people holding crypto assets, the support of crypto payments became an advantage for the companies. The increased number of crypto casinos is one of the best examples. Not only the casinos offer bitcoin spins for free for casino players, but support any kind of crypto payment and offer almost instant withdrawals. Moreover, the Bitcoin casino is based on blockchain technology which makes them even safer and sound for the players.
Because of the fact that casinos offer crypto payments, players can place their bets and gamble more freely. The payment through digital currencies does not affect the player’s bank accounts, which guarantees clean accounts and bank history. This way the online casinos which support crypto payment have automatically attracted many online gamblers.
Innovations and Privacy
The tech industry is extremely dynamic and constantly offers users innovations and improvements in certain sectors. While BItcoin is itself digital, it can not stay without major updates and advancements. The e-wallets are especially great attributes, that enable storage of the money online without any fear of being hacked or traced. Moreover, new cryptocurrencies are popping up, which are more affordable to many people.
Privacy is, on the other hand, one of the most important benefits of cryptos. Because of the technology and the decentralization, the transactions with cryptos are not traced. This leaves additional privacy on the side of the customer. You can stay anonymous if you want to and no governmental officials can require any type of transaction history or explanation for your transfers. Undoubtedly it has some drawbacks as well, though as mentioned before Bitcoin and the crypto developers are constantly working on innovations, including the exclusion of the illicit activities that proceed through the crypto transactions.
With the support for cryptocurrency infrastructure and interest in making financial transactions using cryptocurrencies expected to keep growing over time, further research should seek to explore further what drives participation, and what consequences such support may have on incumbent financial structures. This study has demonstrated that institutional and social factors had important roles to play in the growth of the Bitcoin system to date, which suggests that such factors should also be carefully considered in future research on digital currency development.
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