Why You Can’t and Shouldn’t Ignore the Crypto Phenomenon

4 mins, 19 secs Read
Updated On December 22, 2023

Although it’s only been 14 years since the first cryptocurrency was invented, it seems like we’ve been talking about this novel asset class forever. Over the past few years, it felt like Bitcoin and Co. have been on a very aggressive promotional campaign that left us no choice but to acknowledge their presence. Even if you had no desire to learn about this emerging industry, it was simply impossible to escape the crypto frenzy. From forums and social media platforms to blog posts, news coverage, and celebrity endorsements, we were bombarded with never-ending discussions about Bitcoin and Ethereum fluctuations, or investment methods and strategies that could lead to high earnings. 

Under these circumstances, it’s not surprising that some people feel like they’ve reached the saturation point where they can’t consume any more information on this topic. Others simply don’t understand what the fuss is about and refuse to put in any effort to decipher the increasingly intricate world of digital currencies.

However, as tiring and overwhelming as crypto may have become, ignoring digital currencies might not be the smartest approach. Not only because it’s virtually impossible to block all the noise coming from this sector unless you decide to relocate to a remote island and live your life like a hermit, but also because digital currencies might bear more importance than you realize. 

Not Just a Fleeting Fad

When Bitcoin was invented back in 2009, people were not familiar with the concept of virtual currencies, and they weren’t eager to learn about it either. A few years after Bitcoin’s creation, other crypto projects emerged, setting the foundation for the future cryptocurrency industry. But even then, it was easy for people to brush off digital currencies as just another fleeting fad, as no one seemed to trust or give them any chance of success. The technology was simply too young and not sufficiently understood, appealing to the masses. 

The years went by, bringing with them more crypto initiatives and a string of bull and bear markets that caused coins to go through successive cycles of rise and decline. In the meantime, crypto popularity increased and a growing number of people began trading and investing in digital currencies. With each passing year, crypto moved closer to mainstream acceptance. 

On the other hand, Bitcoin and all the other coins in the market were heavily criticized for their inherent volatility and the risks associated with it. Skeptics argued that crypto investing is purely speculative and the fact that digital currencies lack real value will inevitably lead to their demise. Others pointed out that crypto mining uses enormous amounts of energy, making them bad for the environment.

Needless to say, neither these critics nor the ongoing bull and bear tantrums stopped the cryptocurrency industry from pushing forward. If anything, all the obstacles and challenges that crypto had weathered since its inception proved that digital assets are not just a speculative fad. In fact, they’re far more resilient than expected, so they’re not going anywhere anytime soon. 

Governments are No Longer Ignoring Crypto 

Crypto is something that does not gain support from the government or any of the financial institutions. But with continuity in its expansion, investors from various industries came in front and decided to join the hype. Although, government bodies are pretending that digital currencies are not important, but could not hold them for long. Those evolved asset classes are becoming real threats to centralized systems such as governments and banks. For this reason, something has to be done at the earliest convenience. 

Nonetheless, different countries have different approaches to this. Later, countries like Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Tunisia, Nepal, and Qatar made decisions to ban such digital currencies on their territories. Despite them, a few other countries took a whole other route and begin to accept Bitcoins as legal tenders. Those countries were El Salvador, Venezuela, and the Central African Republic (CAR). The emerging trends provide a middle ground for governments so that they can introduce their own virtual currencies. Hence, known as Central Bank Digital Currency (CBDC).

Later, it seems like some of the counties such as China, Russia, and Norway have started working on it and testing their first versions of CBDCs. Over time, there was an increased interest in the regulation of cryptocurrency transactions. It is a way to combat volatility and security concerns. However, countries are showing their increased influence on cryptocurrencies while keeping a close eye on them.  

Businesses and Organizations are Jumping on the Bandwagon

Things are getting different on the business front, as the government around the world and unenthusiastic about crypto and the technology behind this ideal asset class. Recent studies demonstrate that the US alone has more than 2,300 businesses that accepted Bitcoin. Those businesses are not the small ones, they are the big brands like Microsoft, Burger King, Subway, and Twitch. 

Although, the usage of these cryptos is not considered a common practice yet to pay for goods and services. Because most business owners are still not used to it and coming to realize the benefits associated with its integration. Nonetheless, consumers’ interest in digital currencies is rising in this contemporary era, which makes sense to enable crypto payments to cover customers’ needs and preferences. That is, for online retailers and brick-and-mortar stores for certain transactions. 

Besides, It’s not always about cryptocurrencies that are gaining ground in a business environment. On the contrary, technology plays a vital role and serves as the backbone for assets like infamous blockchains. This blockchain technology is widely referred to as the use of digital currencies. Therefore, the usage of this technology is expanding beyond the finance sector. The growth is explicit from supply chain management to real estate, healthcare, and smart contracts. It is seen that this blockchain technology has the potential to revolutionize many industries and business areas. With this, companies are eyeing to learn more about technologies and the benefits it brings. 

Wrapping Up 

Cryptocurrencies and blockchains are something that is taking the world by storm. The growth of it is unstoppable. However, their dominance is going to continue in the coming years. Taking everything into consideration, in this context, the most sensible decision to be made by both individuals and organizations is to educate themselves about it. And, try to cope with trends while keeping an eye on the industry’s evolution. 

Author: Joseph Williams