The cryptocurrency revolution has begun! Cryptocurrency is a digital currency that is an asset that is used as a medium of exchange. The system is based on blockchain technology which is a system of recording information that is extremely difficult to hack and all records of transactions are being recorded and computerized.
According to investopedia.com, cryptocurrency was created in 2009, during the global financial crisis. Civilians were upset with banks and governments for not being trustworthy and couldn’t control their hard-earned money.
The most expensive and most popular cryptocurrency is Bitcoin, created by Satoshi Nakamoto in 2009. Today Bitcoin is worth almost 50,000$ per share and is growing tremendously. Due to the impressive increase of crypto, many Coinations and private companies have gotten interested in involvement in the digital currency world. Figure 1, shows the growth of the bitcoin value in $ over the last 7, it is very clear that the coin’s value has been increasing at an immense rate.
Some countries have legalized the use of cryptocurrency and some have not. Leading countries (such as the US, Canada, Japan, Australia, and European Union), enterprises, and private companies (such as Amazon and Facebook) have invested in the currency and even allow it as a method of payment. This is a step towards making cryptocurrencies global and more valuable.
In the last few months, companies like Microsoft and Starbucks have started allowing payments with crypto. Tesla will accept cryptocurrency as payment in the future, this is pure evidence to support how crypto is expanding and is going to be the future of payments.
Now, Paypal has just announced that they will be allowing US consumers to use their cryptocurrencies to buy products from any of its 30 million merchants worldwide. This means that US consumers will be able to convert their digital assets via their PayPal digital wallets to use the assets as normal money.
Over time cryptocurrency is expected to get more accessible (as it becomes legal in more countries and available as an exchange method) and trustworthy than government money, which will create a challenge and barrier to central banks and nations, as the digital currency will grow, expand, and reach out to all. The cryptocurrency revolution has just begun and it does not seem like it is going to stop anytime soon.
Sources:
https://www.futurelearn.com/info/blog/understanding-blockchain-cryptocurrency-bitcoin
https://www.investopedia.com/terms/c/cryptocurrency.asp