Currencies have always been a medium to make exchanges since the medieval age. That means it is a form of an element that is issued by the national authority as face value for making payments. Before currency, we used a bartering system as a medium to exchange goods and services.
This currency method was not changed for thousands of years until the 21st century when a new currency concept was introduced in the market. Virtual currencies or digital currencies are those that have no physical presence in the materialistic world.
Understanding currencies
Currencies in physics have been there in the world for more than 3000 years ago and have proved themselves to be a crucial part in the time of trading.
However, suppose you compare the currencies of the media generating and today’s world. In that case, you will find that today’s currency hardly holds a candle against it as modern generation currency is made up of paper rather than valuable elements like Gold and silver.
As we are stepping into the modern and digital world, the currency concept is becoming more valuable than the actual value of the elements it is made up of.
Cryptocurrencies are getting popular nowadays. These currencies have no value in physical form, to be precise, it does not even exist; still it one Bitcoin is equivalent to more than $11000.
The conceptually based currencies are getting popular and are considered a threat to the fiat currency’s existence. What are the reasons? Let’s find out.
- Increase in consumer interest
If you are interested in Bitcoins and Cryptocurrency, you surely know about bitcoin’s price rally in 2017. You consider that due to the increase in consumer interest. Today, people are much more aware of the existence of cryptocurrencies and how they are being used in the market.
After seeing how profitable but can be and the number of millionaires it has produced in the last decade, people have shown their interest in understanding and investing in the cryptocurrencies.
There are no physical elements that back the price evaluation of cryptocurrencies. The only thing that evaluates the price of cryptocurrencies is the people’s belief and trust in the cryptocurrencies.
Hence, we can hope to increment the belief in the future for Cryptocurrency to become one of the mainstream cryptocurrencies.
- Impact on the industry
We are now seeing that more business has started adopting methods suited for cryptocurrencies. These industries are accepting Cryptocurrencies as payments and are giving their employees Crypto tokens as their paycheck. Platforms to Start Bussiness, Such as coin base, and Bitcoin evolution play a significant role in proving the usage of cryptocurrencies.
Cryptocurrencies have seeped into the core part of many industries to make their regulation smoother. Though it is miles away from a smooth regulation facility, hey, having something is always better than having nothing.
- Impact on the government
Governments were never interested in Cryptocurrency until the 2017 rally. It was 2017 that proved the government how much people are interested in the Cryptocurrency. After looking at the stats and number of traders and investors who are affiliated with Cryptocurrencies. Governments worldwide have several amendments and bills to tax Crypto profit and declare their acceptance.
However, there are still many countries that doubt the authenticity and credibility of Cryptocurrency. So, we might have to wait a decade to see the full potential of Cryptocurrency.
- National adaptation
At this stage, some people are freely using Cryptocurrency. Though investing is easy, liquefying them is the most challenging part. It is high time for the government to participate in the Cryptocurrency trade and provide their consent for Cryptocurrency.
- International accessibility
The world has several international currencies, and among them, USD stands at the top. But if the national adaptation is successful, then there is a chance that we will get a single unit of currency that can be used worldwide.
Conclusion
After going through all the Cryptocurrency possibilities and how it is performing now, is it possible for the Cryptocurrency to take over the traditional fiat currency? Absolutely. However, the transition might take more time. We can wait and see what the future has in store for cryptocurrencies.