Several speculators have been anxious due to the latest drop in bitcoin prices. But is it the end for virtual coins? Probably not. The history of money shows that new ideas take time to catch on. such as Crypto Genius, engage in this Next Revolution.
Digital currency or thought that gold was the beginning and end of all money? Cryptocurrency will also endure as long as it fulfills a useful purpose, which it currently does not thoroughly do yet. Here are reasons why cryptocurrency will survive and thrive in the long run.
Digital coins are here to stay.
The first and most crucial reason cryptocurrency will survive is that digital coins are here to stay. They are a legitimate form of money, even though they are not yet mainstream. It will change in time, however. We know this because there are three main reasons why cash endures:
- Money as a store of value. It is what cryptocurrencies are currently used for and as a medium of exchange.
- We can maintain records of money thanks to payment. Cryptocurrency now fails here since it is not yet scalable enough.
- Money as payment for taxes.
Cryptocurrencies can only be used for this in very few countries at present. But this list shows that digital coins have all the qualities needed to survive as money. They need time to come into their own.
Crypto is a store of value.
Cryptocurrencies have a long track record of being a store of value. It is what made them so famous in the first place. No other asset class was as profitable as cryptocurrencies were in 2017. The value of these digital coins soared by as much as 3800% in the last calendar year.
It could happen again, too, even though it is unlikely. It is because any government or central bank does not back cryptocurrencies. While there is no certainty that cryptocurrencies will keep their value, the last year’s track record makes it. The supply of these coins makes them a good store of value.
Long-term, BTC would be valued greater.
Its most valued and well-known cryptocurrency is BTC. It is also the one that has fallen the most in recent months. While this could be the case, it is more likely that the price of Bitcoin will increase again.
The demand for this coin on its utility is related to the number of transactions using it. And as more and more people worldwide start using Bitcoin, its value will go up. It is because of the supply of Bitcoin at 21 million coins. When demand is rising, as it is at present, the price will go up. BTC is a global asset unrelated to any country and government. It gives it an advantage over other investments because users can use it to escape any crisis.
Blockchain has many uses beyond cryptocurrency.
It is also flexible and can for more than just tracking the exchange of money.
It can keep track of supply chains, ensure the authenticity of goods, and more. It renders it a priceless innovation that will become more significant in the following decades. Crypto on the blockchain means that as the first grows in essence, the other will follow suit. Crypto is also an investment in blockchain, a technology with a bright future.
Institutional money is coming – and fast.
It will change shortly as institutional money comes to this market. It is because the advantages of cryptocurrency as compared to traditional investment assets are many.
Cryptocurrencies are decentralized, so they are less prone to government interference. They are also transparent, secure, and easy to trade. And above all, they are uncorrelated to other asset classes, so users can use them to diversify investment portfolios.
As the above shows, there are many reasons why cryptocurrency will endure. It is a legitimate form of money that many people worldwide already use. And most importantly, it is a technology with many uses beyond cryptocurrency and is set to grow in importance. It means cryptocurrency is here to stay and will likely be around for a long time.