CRYPTO’S SPECIAL PLACE IN THE NEW WORLD
First things first, the new world is a digitised one.
But, the question is — what is the place of cryptocurrencies in this new world?
Everyone seems to be hopping on the crypto bandwagon as more and more people invest in cryptos, even when they know nothing about it. Whoever Satoshi Nakamoto might be, there is a strong likelihood that they (or him or her) weren’t expecting the boom and global popularity that cryptocurrencies have now garnered.
Already, cryptocurrencies have so much focus on them, no respectable financial media outlet ends the day without giving them a mention. Many people are investing — and many others will invest. In 2021, the amount of bitcoin projected to be in circulation is 18.68 million BTC. To put that in context, that is almost 715 trillion dollars. And, that’s just for Bitcoin, which is just one cryptocurrency out of hundreds.
So, what are some of the most significant things associated with crypto in the new world?
CRYPTO AS A VALID MEDIUM OF EXCHANGE
As most people learnt in basic High School Economics, good currencies have certain characteristics. One of the features of a good currency is that it should be generally accepted as something valuable enough to exchange for products and services.
On that front, crypto has carved a space for itself. Across a wide range of businesses — including the online casino market, restaurants, tech companies — crypto is legal tender.
Paypal, Xbox, Burger King Venezuela, KFC and Coca-Cola represent several global brands already accepting crypto as a way to pay for products bought and/or services rendered.
As a medium of exchange, transactions facilitated by cryptocurrencies are very secure — thanks to the largely impenetrable blockchain technology. This in turn creates an environment of trust for businesses and customers to thrive in. Crypto’s place as holding enough value for exchange looks like it’ll be around for a while.
Paying for your hot morning coffee with some Dogecoin might just be a thing in the new world.
CRYPTO MAKES MILLIONAIRES?
Not everyone will become rich through investment in cryptocurrencies — but there sure have been more millionaires around the world since trading and investing in Bitcoin, Ethereum, Dogecoin and many others became mainstream.
This article by CBS News reveals that over 100,000 people have at least $1 million in bitcoin. That fact is especially more relevant when you consider the fact that there were only 25,000 bitcoin millionaires at the end of last year.
Sure, bitcoin may be unstable but it’s important to remember how bitcoin started. In 2010, when it first experienced a value increase, bitcoin was valued at $0.08. In June 2011, Bitcoin jumped from one dollar to thirty-two dollars. As recent as the early days of 2020, 1 Bitcoin was valued at $7,200.
Fast forward to 2021 — Bitcoin keeps fluctuating but never below $30,000. Do the simple maths and you can predict much a person who maintained Bitcoin investment in the early days will have.
Bitcoin isn’t the only cryptocurrency making people richer (at least on paper). NFTs, powered by Ethereum, and the more in-vogue Dogecoin have had that same effect too.
In the new world, you might be a millionaire just because you placed your trust in the right crypto.
Conclusion
Many things can be said about cryptocurrencies. Older generation investors seem hell-bent on the narrative that cryptocurrencies are a risky investment because of their extreme volatility.
But, what investment isn’t risky?
Cryptocurrencies, in the new world, offer a way for people to be in control of their wealth in a truly decentralised and secure environment — which is more than what many believe fiat currencies to be capable of.
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