Will Bitcoin or another cryptocurrency eventually replace paper money or cash? That is a question that has been in the minds of the public and investors for a long time. With the current adoption rate of digital assets, there is the possibility that these coins will start being used as a form of payment for products or services.
There have already been companies that have started accepting Bitcoin and other alternative cryptocurrencies as a means of payment. These businesses understand the power of crypto, and most are using this payment structure as a way of hedging against rising inflation.
Many of these digital tokens, especially those with a real-world purpose behind them, are growing exponentially.
The Most Powerful Cryptocurrencies
The two most potent cryptocurrencies right now are Bitcoin and Ethereum, respectively. Bitcoin and blockchain technology have been around since 2009 when anonymous creator Satoshi Nakamoto posted the open-source code to the internet.
This technology has revolutionized the way people transact because it provides them with anonymity and allows them to send money worldwide.
Ethereum was built around the Bitcoin blockchain code and adapted to the proof of stake mechanism instead of proof of work. That allowed the Ethereum network to perform more transactions without miners approving deals between participants.
These complex algorithms are why the cryptocurrency is so secure and fantastic to transfer money. Blockchain technology is here to stay, especially with the rise of various blockchain games and NFTs.
What Can Bitcoin Do for Our Future?
There have already been countries that have adopted the digital token as a legal tender, and one of these regions is El Salvador. The country’s economy is crumbling, and the government decided to invest part of its treasury into Bitcoin and distribute some to its citizens.
Some experts are concerned about Bitcoin’s volatility and question how an asset like this can be used as a currency. The answer is simple, and it is all about the adoption curve.
If you consider that only around 150 million people worldwide hold cryptocurrency, you can see that we are still at the beginning phases of adoption. Imagine what it will be like in the next 5 to 10 years?
“HODLing” Bitcoin
Savvy investors worldwide invented the term HODL (hold on for dear life) because of the extremely volatility Bitcoin experiences almost daily. This type of price movement scares many newcomers when they invest for the first time.
It would help to look at the bigger picture when investing in Bitcoin or any other cryptocurrency because these financial ecosystems are ever-changing. Click here to know about the right platform to earn bitcoins.
With the current price of Bitcoin sitting at around $37,000, there has never been a better time to invest. Even though there have been regulatory talks causing price action of the digital asset to plummet, there is no stopping the growth rate of cryptocurrency and the blockchain.
It is good to note that the market goes through cycles and what is happening now was what happened in 2017. Bitcoin went through a bearish phase during that year, where it consolidated for an extended period before a bullish rally to an all-time high ensued. That coincided with the upgrades to the blockchain and more adoption of the technology in general.
Conclusion
No matter how you look at it, cryptocurrency is the future of money and has made many millionaires in the last decade. There is no stopping this technology from taking over how we perform finance, play our online games, and make purchases from our favorite online retailers.
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