What Are the Chances of Cryptocurrencies to Become Mainstream?

by Ronny
on 27 April 2018
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Henry Ford said, “Coming together is the beginning; keeping together is progress and working together is a success”. Cryptocurrencies are evolving day and night; taking the world by a storm.

People are beginning to accept the industry and slowly turning to investing in digital assets. The interest and confidence on investing in cryptocurrencies is growing as the day goes by.

 People have developed the cryptocurrencies that are now threatening to replace the traditional currencies. Vitalik Buterin developed Ethereum which is now the second largest cryptocurrency in the world. Everyone is talking about Bitcoins and Ethereum. Traditional banks, governments, and individual investors are researching on how they can participate in the market. And slowly by slowing, the industry is becoming mainstream.

Not without Challenges

The entry of the cryptocurrencies in the mainstream is facing a lot of challenges such as money laundering, terrorism funding, hacking, tax evasion and other illegal transactions undertaken on the Dark Web. The problems are tarnishing the image of the cryptocurrencies scaring people away. However, the digital currencies are making their way to the mainstream slowly. They are looking for ways to strategize to build their reputation. For more information about the challenges, cryptocurrencies are facing read here.

 What Cryptocurrencies need to do to Become Mainstream

The clawing of the cryptocurrencies into the money business is not natural as it might seem to be. A lot has to be done for the digital currencies to stand a chance to become the mainstream. The cryptocurrencies have to address the following;

  • Develop an anti-money laundering legislation which regulates the transactions carried. For a currency to be accepted globally, it has to be approved in any country. Some countries have allowed the use of cryptocurrencies and others do not. For the nation to legalize the digital currencies, it has to have control over the currency.
  • The cryptocurrencies developers should develop a way of regulating the digital currencies globally. What is legal in one country is not permissible to another country. There should be a global collaboration where the police and other law enforcers can regulate the use of cryptocurrencies. You can trade using US Dollar anywhere because it is acceptable to any country. The developers should make sure the cryptocurrencies are acceptable worldwide.
  • Investors security, every investor wants total protection for their investment. Cryptocurrency developers should make sure they have adequate security features to keep safe the invested coins. Poor security chases away investors. No government can let its people lose money to hackers. It has to protect its people

Why Cryptocurrencies Stand a Chance of Becoming the Mainstream

The cryptocurrencies have cognitive features that make them outsmart other traditional currencies. The features are making people move from observers to take part in the business. Some of the features include:

 ·         Use of Decentralized Ledgers

 The cryptocurrencies transactions cannot be deleted or amended. Once a trade is carried out, a link to the previous transaction form a chronological chain reinforced through cryptography that makes it difficult to alter anything. The system reduces the chances of theft and fraud unlike banks and other financial institutions that are prone to cybercrime. Chances of hacking a minimal.

 Some institutions like Australian Stock Exchange are planning to adopt the use of blockchain technology. This shows the system is reliable. Other financial institutions will follow the suit making the introduction of the cryptocurrencies easy in the economy.

 ·         Availability and Simplicity of the Cryptocurrencies

 Buying and selling of the cryptocurrencies are done online; it does not require someone to queue. The blockchains are going to impact the world than the internet. Everybody has equal access to the blockchains. The exchange of the cryptocurrencies is simple since it is done online.

 ·         Value Stability

 Since the creation of Bitcoin in 2008, its price has been stable until 2013 which it reached 20 US Dollars. The stability of the price enables the investors to predict the returns they are likely to get once they invest. Traditional currencies like US dollar keeps on oscillating since it is affected by political issues.

 

 Cryptocurrencies Year

The price for cryptocurrencies has been growing over the years. The amount of coins in circulation is also limited to keep the value high. As per March 2018, the number of Bitcoins in circulation is below 17 million. Bitcoins ATMs are approximate to be 2,662 globally. The Bitcoins ATMs will soon increase countrywide and increase Bitcoin transactions worldwide. People will accept the cryptocurrencies, and it will be the mainstream. For further details read here.

Holding other factors constant, by the time we reach 2020 cryptocurrencies will become mainstream. Even if they are not there by that time, they will be close. The stability of the cryptocurrencies is making people embrace them over traditional banking systems. The increasing interest from the investors and adoption of blockchain technology signals that change is on the way. The cryptocurrencies are making their way to the mainstream.

 

Conclusion

There seems to have a cut-throat competition and pressure between the cryptocurrencies and the traditional banks. It is not known who will win the war, how and when the blockchain will be implemented and the way it will be done. The functions of the blockchain are still to be determined. Its plans are underway, a standardized platform that will provide specific services to a particular group of people. It is still too early to tell which currency will top but I can urge investors and other interested individuals to look into cryptocurrencies for investment.

Investing in cryptocurrencies requires one to have an insight into game theory, commercial, economic and statistics. If you have all those, you will have an added advantage when placing your bet on the blockchain technology rather than investing in traditional banks that take time to give you awesome returns.

In a nutshell, investing in cryptocurrencies might be tricky since no one knows how they operate. Some people have termed them as a bubble gum that is about to explode. Do not put all the eggs in the same basket, invest in different avenues. Cryptocurrencies seem to be free from corruption since they are not centrally controlled but they may have other problems tailed.