In the past couple of years, cryptocurrency has been experiencing a sort of Renaissance. More and more people are becoming interested in alternative investment opportunities, and crypto seems to be on the top of everyone’s list. With the surge in popularity of the phenomenon, many are asking the question “why is crypto’s popularity on the rise?” In this article, we are going to look into a few factors that have made crypto the popular force that it is today.
What is Cryptocurrency?
Before we delve into why it is popular, first we need to explain what cryptocurrency is. In simplest terms, cryptocurrency is a decentralized, encrypted, digital unit of currency. Crypto exists thanks to blockchain technology, and due to its decentralized nature, cryptocurrency is not bound by the authority of banks or governments, which means investors don’t have to deal with the fees that FIAT currency often do.
Those are the basics of crypto. Remember that learning about crypto never stops, so if you want to learn more, you can always delve deeper into how blockchains work, how encryption works, and how to invest in cryptocurrency in general. But now that we’ve covered what crypto is, let us take a look at why it has been gaining popularity in recent years.
People are Losing Faith
One of the main reasons that cryptocurrency is growing in popularity, is because people are beginning to lose faith in the financial system. It isn’t just crypto that is on the rise due to this. More and more, we can see mainstream audiences look at alternative investment opportunities, as they lose faith in banking, and bank investments. Forex trading, CDF trading, and crypto are all at the peak of their popularity, with more people becoming investors daily.
Another way in which this lack of faith impacts cryptocurrency, is the decentralized nature of the phenomenon. Cryptocurrency is not beholden to banks, as it is a decentralized form of currency. This means that the roles of banks are not just minimalized, but completely eliminated. Cryptocurrency is not beholden to the steep banking fees that FIAT currency is subject to, and on top of that, crypto transactions can be made by phone, no matter where you are.
While cryptocurrency is currently at the peak of its popularity, many are looking to the future, and wondering whether this golden age will last. While the future can never be certain, many experts today are under the impression that the popularity, and by extension, value of cryptocurrency will continue to grow.
One of the main factors in the growth of crypto, is that it is becoming accepted, not just by investors, but also companies, and even countries. It seems that a new celebrity speaks out in support of crypto monthly, and countries like El Salvador have begun to accept Bitcoin (and other crypto) on a state level. All this makes it seem like the future of cryptocurrency is a bright one indeed.