Since cryptocurrency burst onto the scene in 2009, it has experienced a steep and often turbulent journey. From Bitcoin’s epic price run up in 2017, to its subsequent crash and its more recent moderate rise, the digital asset market has been subject to intense scrutiny and debate. Skeptics have questioned the long-term significance of crypto, noting that it still only constitutes a tiny slice of global financial assets, as well as highlighting its inherent volatility. However, many within the crypto industry believe that despite the long road still ahead, blockchain technology and associated cryptocurrency assets will be a major part of the future of money.
One of crypto’s most appealing features is its decentralised nature. This means that, unlike all other forms of money and assets, crypto, and blockchain technology more generally, is not regulated by the state, or any other centralised authority, such as a bank. This has led some to refer to cryptocurrency as being an “anti-state” currency due to its freedom from legal and centralised control. As a result, transaction fees associated with crypto are generally much lower than more traditional forms of trading.
Crypto also introduces a range of novel security features, hence its use in everything from financial transactions to e-government services. The use of blockchain, the underlying technology of most digital currencies, allows for transactions to be securely stored and verifiable via a decentralised database. This equates to considerable savings in terms of the amount of time and money required to verify transactions, as well as improved safety from manipulation, fraud and errors.
Despite all its potential advantages, there remain questions around how the crypto industry can become more established. For one, the asset market has thus far been the exclusive domain of the tech-savvy, and the amount of knowledge required to effectively navigate the crypto space can be daunting for those new to the concept.
Moreover, crypto has had its fair share of notorious fraudsters and malicious actors, leading to speculation that the asset class is nothing more than a “bubble” or “Ponzi scheme”. However, while the crypto market has had its fair share of troublemakers, the industry is increasingly being held to greater standards of regulation and accountability, providing a more secure and reliable investment experience.
As the world moves towards greater digitalisation, it seems inevitable that crypto and blockchain technology will continue to grow in importance. With the right regulatory framework, the crypto industry has the potential to bring about unprecedented levels of fairness, security and transparency to financial markets. In the long run, it is likely that this distributed and decentralised form of money will become an integral part of the digital infrastructure and the future of money.
infancy. As the technology continues to evolve and become more widely accepted, many of these issues may be addressed.
infancy. As the technology continues to evolve and become more widely accepted, many of these issues may be addressed.