THE FUTURE HAS ALREADY BEGUN
Whenever you come across these terms; “cryptocurrencies”, “digital currencies”, “virtual currencies”, “digital assets”, etc. do not be taken aback because they all mean the same thing. Cryptocurrencies are a form of currency (medium of exchange) that exists digitally, or virtually in the form of coins.
They are secured by a system called cryptography. This feature gives the currencies the unique power to not be duplicated, forged or counterfeited by anybody — no fakes. Bitcoin is the most popular digital currency in the world today. It is so popular that all other cryptocurrency coins are referred to as alternatives, hence earning the name “altcoins” — alternative coins.
Besides these unique features that cryptocurrencies are built with, we are still pretty convinced that these cryptocurrencies are the future currency.
HERE ARE FIVE REASONS WHY
1. Research, theories and predictions
There is a plethora of research that has been carried out, along with theories and predictions that have been released over the sustainability of cryptocurrency vis-a-vis fiat currencies. In 2019, a German multinational investment bank, Deutsche bank, published a research report titled “Imagine 2030”.
According to the report, the current fiat system looks “fragile,” particularly because of “decades of low labour costs” and inflation. The report described cryptocurrencies as a viable alternative that would more than likely experience high demand due to the driving force of inflation.
The report further stated that benefits of cryptocurrencies such as security, speed, minimal transaction fees, ease of storage and “relevance in the digital era” could help drive mass adoption in the years to come. However, according to the report, cryptocurrencies need to become legal in the eye of the government to enhance mass adoption. Well, India is already considering the launch of an official government-backed digital currency
2. Flexible payment option
Cryptocurrencies eliminate any such cross-border payment difficulty that arises as a result of the difference in fiat currencies. The world is fast advancing into a global village, and this feature of cryptocurrencies only makes this advancement easier. Payments are fast, secure and confidential.
Also, the decentralized structure of cryptocurrencies allows them to exist outside the control of governments and central authorities. This means that as a direct peer to peer network, payment is made easily and directly without any third party like banks and the likes. This means no hidden or ridiculous charges when making transfers.
What’s more, cryptocurrencies are not affected by government control. This means the chances of inflation occurring or devaluation because of any such government orders would be largely reduced.
3. The Convenience
“Technology is anything that makes our work easier, and faster.” Remember this simple definition of technology in elementary school? It goes to say that the entire point of technology and future innovations are benchmarked on ease and convenience.
The use of cryptocurrencies would slowly render the use of plastic cards, and the need to make physical deposits or withdrawals, obsolete. This is because all transactions can be carried out on a smartphone that is connected to the internet — the place where your currency is safely secured.
The need to withdraw money and spend would become redundant, and the annoying queues in front of an ATM or inside banks would not be a bother anymore. As long as digital currencies continue to provide this ease and convenience for people, then its future remains bright.
4. Forgery resistant
All cryptocurrencies are secured by a system called cryptography. This system makes it impossible to create forged currencies, or counterfeit. This means that there is a 99.9 % assurance that any cryptocurrency you own is original. Therefore, there is no need to worry about whether they are real or not.
Interestingly, some of the cryptography used in cryptocurrencies today were originally developed for military applications.
5. The growing popularity of cryptocurrency despite volatility
Without an iota of doubt, cryptocurrencies are going to evolve beyond what they currently offer to the modern world. The more it is being used, the more the need arises to make things easier, and this would be followed by upgrades.
Many critics would readily point out the volatility associated with cryptocurrencies as a reason to stay away. However, the unique features cryptocurrencies bring to the modern world today has immensely contributed to their growing popularity and adaptation.
These days, Bitcoin, for example, is promoted and supported by institutional investors. Big institutions like Fidelity Investments, JP Morgan and PayPal are embracing, and taking huge steps into the crypto space. They are buying it, and we know how these institutional investors are not swayed by quick profits. This means their crypto assets are likely to remain for a long time.
In all honesty, Cryptocurrency’s future outlook is still in question generally. This is because proponents see the limitless potential, while critics see nothing but risk. However, the fact that a huge section of technology-savvy individuals and companies are favouring the decision of using a different form of encrypted currencies indicates that the future of cryptocurrencies as a whole is going to be bright.
Are you curious to know about the top cryptocurrencies that are popular in Nigeria today? Perhaps it would help you make a choice in deciding which digital currency to embrace.
