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CURRENCY

5 ways we think digital currencies are the future of currencies

By LLM Reporters on 24th March 2021

Since Bitcoin made several investment-savvy millennials overnight millionaires back in 2009, the word has been watching as cryptocurrencies slowly but surely edge their way towards the mainstream. Although they are still seen as relatively niche at the moment, they remain a key point of interest on the stocks and shares market, and with more of the world’s wealthy accruing crypto-currency fortunes by the week, the way is being paved for them to be more universally accepted. One day, they could transform the way we all spend and consume.

Virtual currencies are a relatively new form of currency and financial asset even now, which means their true potential, in many ways, remains to be seen. With growing global significance, there is no denying that cryptocurrency is a currency of the future – so how can we expect to see it develop over the coming years?

ethereum
Ether is the cryptocurrency built on top of the open source Ethereum blockchain, which runs smart contracts

Great innovation possibilities

Crypto comes with some serious potential when it comes to turning a profit, with Bitcoin in particular a particularly strong investment right now for those who can afford it. With prices steadily rising for some time now, those who got in early could be enjoying a hefty return in years to come – but it isn’t the only one you should have your eye on.

Investors can explore more innovations to come through blockchain – the technology on which crypto is based. Ethereum can be considered as one of the best examples of how things are advancing rapidly; this decentralised, open-source blockchain features smart contract functionality, and its native cryptocurrency – the ‘Ether’ – is becoming increasingly popular. Etherium is the second-largest cryptocurrency by market capitalisation, second only to Bitcoin – and is now the most actively used blockchain.

Today, cryptocurrencies are no longer simply about making a savvy investment, and we are increasingly seeing businesses move towards facilitating transactions via crypto as a means of payment. This innovation now allows people to cover their health, education, insurances and many other areas, courtesy of block-chain technology. 

Even so, trading crypto online remains a savvy way of growing your fortune, if you know what you’re doing. The Bitcoin Prime Website is considered to be the leading automated crypto trading platform, and has seen a huge spike in popularity over the past twelve months as, during the global pandemic, people seek to make better choices when it comes to investing their money – and it’s a trend we will likely see continue long after we have emerged from the worst of it.

bitcoin
Bitcoin is a cryptocurrency invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto

Bypassing inflation

Inflation is a necessary evil we all have to deal with, negatively impacting our income and private fortunes each year. Wherever you live in the world, increasing inflation results in decreased purchasing power – but cryptocurrencies have managed to successfully bypass these effects. 

Crypto supplies are limited, with only 21 million Bitcoins, for example, available globally – and it’s thanks to this invariable supply that it has remained immune. This, of course, makes it an even more attractive prospect for investors – and rightly so.

Zero third-party intervention

Digital currencies also provide liberty of transaction by removing third-party interference from regulatory institutions. Businesses that deal with payments via traditional fiat have to concede regulatory intervention, however, those dealing in crypto can bypass it entirely. 

Intervention comes with its challenges; transaction charges increase to cover the intermediary’s fee, thus making the product or service being bought more expensive – so being able to avoid this is a huge advantage for those dealing in crypto.

Digital currencies eliminate this third party reliance and thereafter reduce the total cost of the product or service being bought, making it a win-win on both sides.

bigstock-Flying-Bitcoin-As-Most-Importa-337998904
Bitcoin was the first cryptocurrency to successfully record transactions on a secure, decentralised blockchain-based network

Increased employment opportunities

The introduction of virtual currencies has increased employment opportunities on a global scale. The phenomenon requires specialist skill sets, with roles ever-increasing for developers who can mine and create coins. As crypto is still relatively new, there remains something of a skills gap – but jobs in the field can be lucrative. Over the coming years, we can expect to see more and more people studying the relevant courses to work in crypto, and earning handsomely for the privilege.

In fact, these training institutions alone have increased the demand for those with the skills – because without experienced professionals already in the field on hand, it is something that simply can’t be taught. Over the next ten years, we can expect to see crypto careers become some of the most sought-after globally – and understandably so given their huge financial potential.

Safer online shopping

Online shopping comes with its risks, and the fear of fraud leaves many feeling uneasy when it comes to making purchases with credit or debit cards. Despite constant developments and innovations in the field, personal data continues to be compromised and exposed through hackers – but the integration of crypto into the mainstream could change all that.

Thanks to advanced blockchain technology, cryptocurrencies offer an incredibly secure way to process transactions and therefore greater peace of mind to individuals and businesses alike. This increased confidence ultimately has the power to boost the global economy, so we can expect to see it going mainstream perhaps more quickly than we think – but when exactly this will happen still remains to be seen.

The bottom line

Cryptocurrencies are the future, and with new developments surrounding them every day, we could be about to see the way we spend transformed. In the meantime, they remain an excellent investment opportunity that more people than ever are cottoning onto, with some making tidy fortunes in the process.