Crypto Goes Mainstream

In the modern age, currencies have evolved to the point where the need for banks and financial institutions is becoming obsolete. 

With the introduction of cryptocurrencies in 2009, they represent a form of digital currency powered by new blockchain technology. 

Each cryptocurrency's value has substantially increased in the last decade, making it harder to track its worth. Cryptocurrencies are hard to predict when they will increase or decrease in value, but thankfully the same can’t be said about fiat currencies which stay relatively at the same value. 

Knowing the value of fiat currencies will immensely help anyone interested in investing in crypto, so be sure to check out JustMarkets and their unique services for tracking the value of each currency. 

Businesses have slowly incorporated cryptocurrencies as a tool to help them grow as a company and assist them in adapting to this digital age. Many are still skeptical as cryptocurrencies are relatively new, but as time goes by, they will be a crucial step in the evolution of currencies. 

The History and Evolution of Cryptocurrencies 

Cryptocurrencies come a long way from where they were in 2009, and with constant evolution, they have become the most talked about subject today. 

Cryptocurrencies Early Days 

The first cryptocurrency was invented in 2009 and became the now popular Bitcoin. Initially, Bitcoin had difficulty gaining popularity, and its value was relatively low.  

That soon changed as more people hopped on the trend to invest in the coin, and early adopters used cryptocurrency mining techniques to get a piece of this new phenomenon. 

Bitcoin’s Expansion 

As time went by and more and more people started to invest in Bitcoin, it was only natural that its value would increase. In the early 2010s, Bitcoins price significantly increased, making it widely used by businesses as a payment method. 

At the end of 2020, Bitcoin saw an enormous spike in value, reaching nearly $29.000, and it continued to rise in the following months. It still holds the title of the most valuable cryptocurrency, worth around $31.000. 

Further Development of Blockchain Technology 

With the invention of Bitcoin and the rise of blockchain technology, the world saw a wave of new generations of cryptocurrencies.  

These cryptocurrencies were a step up from Bitcoin, but none could surpass it. Today thousands of other cryptocurrencies are available on the market, the most popular being Ethereum, Litecoin, Cardano, and many more. 

Cryptocurrency Investing and Business Opportunities 

For cryptocurrency to succeed, groups of people must be willing to invest time and money in them. 

Crypto Investment 

Investing in cryptocurrencies is one of the best ways individual investors or businesses can grow financially. For example, if you invested in Bitcoin when its value was low, today, you might be a multimillionaire. 

Note that not all investments will bring positive results. Choosing newer coins comes with the risk of losing your money as their value fluctuates more often. 

Day Trading 

Day-to-day trading is a relatively new concept of cryptocurrencies that utilizes unexpected growth patterns.  

The concept of day trading works when investors track the prices of their desired coins hourly or daily, choosing to buy hundreds or even thousands of coins when the prices have dropped. When their prices increase, they sell the coin to bring in a profit. 

Because of the uncertainty of cryptocurrency values, this method of making money is risky if done by a non-professional and can yield poor results. 

New Payment Option 

With its constant evolution, many companies have allowed payment with cryptocurrencies. This is not a new thing.  

Many companies used to allow payments with crypto in the past. Still, with its recent spike in value and popularity, it’s becoming more apparent that businesses like the benefits of cryptocurrencies. 

Possible Concerns 

As the benefits of crypto sure do outweigh the drawbacks, there are some concerns that individual investors and businesses have to take into consideration when purchasing coins: 

• Security Concerns - The blockchain technology that cryptocurrencies are based on is considered secure, but the possibility of a cyber attack can lead to devastating outcomes. Online wallets can be compromised, transaction histories can be deleted, and more potential harm can be done. 
• No Refunds - Once a transaction has been completed, that transaction can’t be refunded. This can cause severe problems for people who accidentally purchased the wrong coin or have been hacked and lost all of their balance. 
• Lack of Rules - Because cryptocurrencies are based on the internet, the isn’t a need for a financial institution. When the middleman is cut from the picture, all the regulations that come with traditional banking are lost. This can cause opportunities for illegal activities like money laundering. 
• Flexible Value - Cryptocurrencies gain traction with people’s investments, and their prices can rapidly change in value. The price of coins increases when investors sell them for a higher price, and if the value drops, the need for that coin is decreased. 

Conclusion 

Today crypto can be considered a wonderful tool to help people and businesses maximize their capital gain, and with constant updates to the technology used, it can become tremendously helpful. 

As this is a relatively new way to manage finances, it has several disadvantages that may be problematic for some businesses. Still, overall it represents a refreshing new way to invest and trade and has great potential.