Bitcoin has seen its most powerful bullrun since its inception in 2013. It took only eight years for cryptocurrencies to transform from an obscure digital toy in the hands of some “geeks” and crypto enthusiasts into one of the most popular asset classes. most coveted ever to grace the world’s financial system scene. Cryptocurrencies now wield a global capitalization of over $ 1.85 trillion, growing almost daily.
The surge in Bitcoin in early 2021, after a prolonged lull in volatility and price spikes valued from just under $ 6,000 to nearly $ 65,000 in the span of one quarter, is indisputable proof of the power of the asset class to grow on the wave. application and demand. All spurred on by the increasing integration and adoption of the given decentralized currency around the world.
The reasons for such adoption are varied, including the weakening of the traditional global financial system, the declining share of the dominance of the US dollar in international transactions, and the decreasing confidence of people around the world in the ability of trust funds to operate. provide sufficient opportunities for value storage.
Bitcoin has overtaken gold in terms of storing value as an asset on several occasions, provided its volatility is more of a boon than a risk. With its ability to gain hundreds of percent in value over a quarter, then regain up to 20% in less than a few months, Bitcoin is the penultimate instrument for storing value and generating profit. However, besides being a highly coveted trading instrument, Bitcoin is much more – an instrument of payment and value projection, as well as aggregation.
Evidence of the abilities of cryptocurrencies to act as a means of aggregation of value is clear when looking at the capitalization of companies such as Tesla, Microsoft, PayPal and many others who are embracing Bitcoin and others. crypto-currencies as a means of payment. Once a new customer base that uses decentralized assets is attracted to a company’s target audience, the company appreciates stocks and is instantly propelled into a new digital market environment, where millions of crypto holders are ready. and willing not only to take advantage of their cryptos. , but also to uplift those who embrace decentralization.
When average users and internet users read the news and wonder why crypto is crumbling, the answer always lies in the law of supply and demand, which dictates the prices of cryptocurrencies and all the rest. products in any other market. It would be foolish to think that speculation does not play into factors affecting the law of supply and demand, just like many others such as news contexts, conviviality, geopolitical situations and the like. Speculation is the fuel that drives markets, as the desire to make profits on asset classes is what was the birthplace of virtually every market.
The same goes for cryptocurrencies, which depend on demand – itself spawned by the increasing application of decentralization in various industries and the blazing of the traditional financial system under the pressure of disruption. the best crypto to buy is still the one with the most applications in a practical sense, and this is the underlying principle of demand, where Bitcoin leads far as an accepted payment method with more than 15,000 merchants around the world.
The critics
Much of the criticism regarding cryptocurrencies has come from those struggling against the introduction and adoption of cryptocurrencies around the world. It is impossible to stem progress – let alone prevent people from resorting to an impractical instrument in their day-to-day transactions, when there is a more practical alternative at their fingertips.
Why would someone working overseas to finance their family in their country pay more than 10% transaction fee to a company like Western Union and for a few days for the transaction to be approved and processed, when they have the ability to set up two – end blockchain wallets and send the money they earn as commission-free cryptocurrencies instantly? This is precisely what cryptocurrencies are designed to do – strengthen the army of the world’s 2 billion unbanked people and integrate them into the global economy by giving them financial instruments that they have been deprived of by virtue of. for a myriad of reasons ranging from grassroots social injustice and racism to geopolitical upheaval.
Cryptocurrencies are the alternative to a financial system that has retained all of its flaws and flaws for years without even bothering to evolve. Due to its monopoly and constitution as a global leveraging mechanism, the global financial system is severely sclerotic and is based on profit patterns that ignore the virtues that the world powers that propagate such infrastructure actually support. There is no value for human rights and freedoms, when every transaction made through Visa, MasterCard or any other gateway is monitored, controlled and the data of the parties involved can be shared between third parties for a certain many reasons and purposes the owners of the data are not even aware. This, and exuberant transaction commissions coupled with long processing times, make the traditional financial system inferior to decentralized systems.
The controllers of the traditional financial system need full oversight of all operations in order to be able to control the lifeblood of the global economy. In a war, the truth is always the first victim. But at 21st century of information warfare, the truth is corrupted and information becomes a weapon that can be adapted to attack a target while hiding behind a veil of credibility. Likewise, senators, bankers, civil servants and all manner of representatives of the traditional centralized world of governance use their positions of power to discredit a competitor – cryptocurrencies, which threatens to rob them of their leverage.
Full transparency of all operations, immutability of records, low transaction fees and instant transfers on blockchain systems are not seen as bargains by the puppeteers of the traditional financial system, but as threats that must be aligned. and controlled just like fiat. to end up degenerating into a sclerotic system aimed at generating profits for the elites. The critiques of decentralization that are often heard by die-hard proponents of complete centralization are superficial and mundane at best, including such ill-constructed arguments as energy inefficiency and the risk of piracy.
Facts
The most recent data from the Bitcoin Mining Council indicates that the decentralized industry blockchain network absorbs less than 0.1% of all global energy consumption – a negligible price to pay for bypassing inefficient, expensive and considerably more traditional financial gateways. energy-intensive. The point is, cryptocurrencies are competing with traditional financial instruments for dominance, and many governments are starting to realize that the fight for the minds and feelings of users is already over.
Users are disillusioned with fiat and are transferring their savings into cryptocurrencies, as evidenced by the massive increase in the number of crypto exchange users during the Covid-19 pandemic, which has devastated the economy world of its illusions of globalization. With over 63 million unique crypto wallet users in the market, it is only a matter of time before governments begin to take advantage of the opportunities to issue their own decentralized instruments.
Such tools would be the alternative instruments of state surveillance and control, of course, but the inherent virtues of the underlying blockchain technologies and the security of the belief in state stability would certainly attract a wide audience of people. experienced and new crypto users.
The number of trade hacks has also declined significantly over the past year, showing that decentralized infrastructure is increasingly advanced and civilized, allowing investors to enter the market and pour their cash to fuel. Requirement.
Adoption
Many companies are already adopting cryptocurrencies not only as an accepted payment method, but also as part of their internal structures, after realizing the efficiency that blockchain can bring. Some of the adoption, research and development leaders include giants such as Amazon, Microsoft, IBM, PayPal, and Google, all of which are testing and commissioning decentralized solutions for businesses.
Retail, however, is the biggest cryptocurrency adopter with names like Burger King, McDonald’s, Overstock, WalMart, and Amazon, along with many others, leading to the acceptance of cryptocurrencies as a means of payment from a technology expert, progressive and a highly intelligent clientele, who values their privacy and believes in many of the principles of decentralization. Those who adopt are rewarded with both prominence in the decentralized arena and inflows of cash in the form of crypto assets, which they are free to add to their portfolios and grow or trade depending on the market. market volatility – a win-win situation for all parties involved.
The result
Crypto is not dead, but is experiencing a new revival, which is likely to lead to the formation of an alternative digital economy built by the people for the people.