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Beyond the Hype: Uncovering the True Potential of Cryptocurrencies

23 May 2023 13:54, UTC

Cryptocurrencies quickly rose in popularity since Bitcoin started trading amongst crypto investors using blockchain technology in the early 2010s. However, beyond the hype of crypto trends, what is the true potential behind them? Let’s find out!

What is Making Cryptocurrency Popular?

Cryptocurrency has increased in popularity because of its secure platform when conducting online crypto transactions. Such security measures have reassured that the monetary sender can be anonymous throughout the whole process.

Unlike using a checking account at your local bank, crypto wallets do not track the transactions that you send and receive from other crypto investors. Hence, this helps to protect one’s identity when exchanging crypto on exchanges and amongst other investors.

Crypto Pays Like Fiat Currency But With More Security

Select businesses worldwide allow you to use cryptocurrency to pay for goods and services. However, you can experience more security with your transactions that they will not be traced back to a credit or debit card since you will be using your crypto wallet instead.

Did you know some casino platforms even allow betting using crypto tokens instead of fiat currency? Speaking of casino games, you can try to play Swiss casino online to enjoy your favorite roulette, slots, and Black Jack, amongst others. While Casino777 operates bets with fiat currency, it’s still a fun experience.

Crypto Is Not Influenced By Inflation or Deflation

Cryptocurrency value is not influenced by the general inflation or deflation happening throughout the country.

Alternatively, ledger tender currencies such as the United States Dollar (USD) bob and weave in value because of inflation or deflation. Hence, converting another fiat currency to USD could mean you receive more or less of the currency, depending on the specific monetary exchange value at the time of conversion.

Crypto Value is Influenced By Supply and Demand, Not a Country’s Economy

When investors repeatedly invest in a specific cryptocurrency, this drives its value via supply and demand. This is why when a new cryptocurrency enters the market, investors will flock to it and invest immediately, hoping it will increase in value over time to make a profit.

Maybe a type of cryptocurrency isn’t as demanded, but it has a plentiful supply. In this case, its value has the potential to decrease. On the flip side, if there are not as many tokens of a cryptocurrency, but more investors are demanding to purchase it, its overall value can skyrocket.

On the other hand, fiat currencies such as EUR and USD are influenced by the success or failures of the local economies corresponding to that currency. For example, a lowered USD value can happen because of inflation, increased prices of goods and services, and revisions in monetary policy.

The Future of Bitcoin

Bitcoin continues to be the most popular global cryptocurrency since its inception at the beginning of 2009 by Satoshi Nakamoto. The crypto undergoes a mining process to create new tokens for investors to own.

Because it was the first of its kind to start the cryptocurrency trend, other cryptos have since then debuted on the market. Think Ethereum, Litecoin, Dogecoin, Tether, and Ripple. While not every crypto is decentralized, Bitcoin and Ethereum are since a bank or other monetary entity does not control them like centralized cryptos.

The Rising Value of Bitcoin

As of May 2023, one Bitcoin (BTC) equated to a value within the $26,000 range. That is a far hike in value since the cryptocurrency began trading on the market at one BTC equaling $0.0008 back in 2010.

By the end of 2023, financial experts report that Bitcoin could rise to a minimum of $42,000 in value or a maximum of $46,000. By 2024 and 2025, it could be over $75,000 in value, depending on where the crypto market goes.