Is Cryptocurrency Here To Stay? FACTS Based Answer
Your cryptocurrency investment portfolio is probably painted with red if you start asking yourself these questions. Doubt is pretty common in this space, as crypto is relatively new among other assets to invest in. In this article, we will comfy your mind it comes to crypto’s future.
At the moment of writing this article, we are massively down since the great bull run of 2017. 90% of people who got into crypto last year are down on their investment and the market sentiment is pretty much depressing.
From the average Joe perspective, crypto is yet another bubble or Ponzi where soon or later we all lose our money.
Joe could not be more wrong about the current state of cryptocurrencies.
Firstly, the need for decentralized currency is simply too strong. Being able to pay anyone in the world instantly, without anyone asking questions is unstoppable at this point. If Bitcoin won’t make it, a better version will eventually replace it.
No government is able to take down any decentralized network upon which cryptocurrencies are built. The only way would be shutting down the whole internet, but hey – if that happens we will have other problems to worry about.
Secondly, Initial Coin Offering or Security Token Offering are the new models of fundraising money by companies of all sizes. That was not a case a couple of years ago and this model got too popular in 2017 to vanish completely.
Today you can be a shareholder in a company that is just starting out in a mom’s garage. Investing in such a venture makes the title for another article, but the fact itself that such things are doable thanks to blockchain technology clearly shows that the future is here (yet people still ask whether cryptocurrency is the future).
Cryptocurrencies would not be here if it was not for blockchain. Actually, you should be asking:
Is Blockchain here to stay?
The blockchain technology is what most of the cryptocurrencies out there are made of. We do believe that it is the second most important invention in modern technology right after the internet itself.
Why is that?
Since the invention of the web, the only thing that couldn’t be easily transferred was money. People can copy a .mp3 file, send it to a friend and keep their own copy. That’s what cannot happen with digital cash. Before blockchain, we had to rely on closed ecosystems like PayPal or Bank in order to send money while paying high fees and sometimes waiting days for the money to get to the recipient. On the top of that, you can simply get yourself banned from services like Paypal if you aren’t politically correct.
With blockchain, you can send a cryptocurrency to your friend in Japan in seconds from your laptop in California. Oh, and let’s not forget that you can send any amount of money across the border an no one is going to ask questions.
Sending $400,000 overseas in under a minute? No problem when using crypto.
Let’s use the recent years of currency hyperinflation in Venezuela as an example. People’s wealth has been ruined by the bad ruling of the government. The whole nation is left with absolutely worthless papers. You have to carry a suitcase of money in order to chicken!
That’s ridiculous and if you think it could never happen in your country, think twice!
Cryptocurrencies allow you to be your own bank and possess a currency that suits best your needs. Be it DAI stable coin that is pegged 1:1 to USD or untraceable Monero. When it comes to possibilities offered by crypto – they are simply endless.
Blockchain technology got its first world-class attention at the end of 2017 when Bitcoin nearly reached $20,000 per token. We believe our population was just getting their feet wet and the amount of FIAT that will flow into the crypto ecosystem in the future is unimaginably huge and scary to think about.
Blockchain does not only allow for cryptocurrencies to exists but also for real estate, art or licenses to be tokenized and therefore bring their value into digital space.
The total cryptocurrency market capitalization has reached $813bln on 7th of Jan 2018. Here is the market cap explained if you don’t understand it.
This number might seem enormous for people unfamiliar with investing, but if we compare $813bn to the size of US stock markets which equals $30 trillion – it’s just 2.7% of it.
Keep in mind that cryptocurrencies are being traded (here are our solid cryptocurrency trading strategies) by people from all over the world. According to VisualCapitalist report, the total value of 60 major stock exchanges in the world has a value of $69 trillion as of 2016!
In this case, the peak capitalization of crypto made it barely over 1% compared to word’s stocks.
Previously we have proven that the technology is here to stay. Now we have shown that is it just the beginning of cryptocurrencies as there are enormously huge piles of money yet to shift to the crypto.
Hey, there is more!
The money from traditional stock markets is not just the tip of the iceberg of what can be turned into digital tokens and coins.
If you ever wondered what is the total worth of the world’s assets we have the answer: $241,000,000,000,000 – a figure with 12 zeros’.
Wondering how does 1 Trillion look like?
Given the current crypto market cap of $200bln, makes it only a 0.08% of the total world wealth.
Is Ethereum and Bitcoin here to stay?
Ethereum is the cryptocurrency project with the largest developer community out there. It is no secret that Ethereum Blockchain powers almost half of the cryptocurrencies out there. An indisputable leader in the space which allows anyone to built their own token or application upon it.
While the concept of cryptocurrencies is here to stay forever for sure, we cannot predict if Ethereum or even Bitcoin will not get replaced by better ideas. Back in the days’ people thought Yahoo is too big to fail, yet Google has proved everyone to be wrong. Time will tell whether the same will happen to Ethereum or Bitcoin.
Ethereum is a pretty safe bet though, as we don’t see any serious competitors on the horizon with such a big developer community.
The good old Bitcoin has been claimed dead more than 300 times in its history. Well, the reality shows us it is holding strong and the fundamentals did not change.
Although it is far from perfect when it comes to speed, transaction speed, and transparency we believe it will remain a cryptocurrency precursor for many decades ahead as it is basically associated with the crypto world itself, and not the other way.
Bitcoin is being described more as a store of value such as gold and rather than the go-to cryptocurrency we’ll buy groceries with in the near future.
Cryptocurrencies and the blockchain technology itself still remains reserved for geeks and early adopters, like you. This will change, maybe not in the next two years but in a decade from now world’s assets will be tokenized and tradable for everyone all over the world.
The people in 3rd world countries who have access to the internet can possess digital money and easily trade with developed countries. It is the 1st world who can afford cryptocurrency investing but we think that developing countries will be the ones to replace their national currencies with.
Africa is the last region of the world with the highest amount of developing countries. 1/7 of the population lives on this continent and believe or not, half of them already possesses a mobile phone and this number grows rapidly.
Now, imagine what happens when all these people realize they can exchange a cryptocurrency with each other without having a bank account and what’s more, without the integration of a corrupted government.
In these poor regions, cryptocurrencies will spread like a virus.
Banks, governments and all type institutions on every continent will soon fully realize that blockchain technology is something they cannot control. From here, they have two options to either join the revolution or lose the battle.
On top of that, developers across the world are working day and night to develop decentralized applications on the blockchain for the masses to fasten the crypto adoption. Just like with the early days of the internet it was not birds and flowers from the very beginning.
There was the first email sent in the ‘60s.
The first photo uploaded to the internet in 1992.
The first live streaming event happened 3 years later.
It took the developers almost 40 years to bring the internet to the masses. Cryptocurrencies and the blockchain technology as a whole are only 8 years old, and given the current state of knowledge, it is just a matter of the much shorter period of time before they will be widely used as an inseparable part of the internet.
Blockchain and cryptocurrencies are definitely here to stay and the ones who realise that it is worth it early on will be rewarded in the future.
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