While it’s true that several cryptocurrencies have fallen below their average trending prices in 2022 due to a bear market sentiment, the technology is by far close to reaching its full potential. As a result, many investors have firm hopes for this technology and have valid arguments.
This article will briefly explain why cryptocurrencies such as Bitcoin are still believed to be a game-changer for our future lives.
How is cryptocurrency better than traditional currencies?
Blockchain technology, which is what cryptocurrencies exist on, was initially developed to enable the creation of a decentralized network where transactions could be verified without the need for a central authority. However, this technology has gained traction in many beneficial applications beyond finance in recent years. For example, it can be used to track the provenance of food products, verify the authenticity of artworks, and ensure the integrity of medical records.
Moreover, cryptocurrencies are believed to be better than fiat money as transactions on the crypto network are independent. To acquire and store Bitcoin, for example, it is not required to have a bank account. This also means that transactions on the network are irreversible by any entities and organizations.
What is cryptocurrency used for today?
The original intention of Bitcoin was to become a medium of daily transactions, making it possible to buy everything from ice cream to real estate. Although cryptocurrencies are now widely accepted, large transactions involving them remain rare. However, crypto can still be used to purchase various products on e-commerce websites.
Therefore, we can safely claim that crypto already has many uses in today’s world. In addition to the revolutionary benefits previously mentioned, the technology is also used to replace fiat money in many transactions. Several companies, from Starbucks to Tesla, accept Bitcoin as a payment method.
Transactions in cryptocurrency are verified using encryption, hence the name. Using advanced coding, data is stored and transmitted between wallets and public ledgers, and its encryption provides security and safety.
In addition to the ability to buy and sell things, cryptocurrency has also caught the attention of many investors due to its potential to store and grow value. The reality, however, is that some don’t necessarily care about the growth potential; among cryptocurrency owners surveyed by decision intelligence firm Morning Consult, 63% said they bought cryptocurrency simply because they wanted to make quick money.
What’s been happening in the cryptocurrency world?
If everything seems so revolutionary, what’s the problem with cryptocurrencies, and why are the prices unpredictable?
On the one hand, the overall skepticism surrounding these coins makes it difficult for them to gain a good place in the mainstream world. Humans often fear what they can’t understand, and some of the wording often used concerning cryptocurrencies makes it seem overly complicated for your everyday person. As long as people aren’t sufficiently educated on the technology and don’t understand its practical uses, it’s understandable why some groups are still rejecting it.
Moreover, the price volatility has proven relatively high for all leading cryptos. Since it is hard to guess when the bear market trend will be over, some investors also chose to back away from the currencies, deciding to sell them in fear of a more significant crash.
However, the reality is the same as anything related to the economy – we just have to wait for the market to correct its trajectory and regain momentum. With the many practical uses of cryptocurrencies already proving themselves helpful, there is very little chance that society will reject the technology in the future and disappear entirely.
If you want more information, you can study more about this topic from the Learn Crypto resources.