February 14, 2022

Cryptocurrencies: Today and Beyond

photo of cryptocurrency trend

After an eventful year, the cryptocurrency market may be poised to achieve even greater heights in 2022. Several large merchants have started taking the money as payment, representing a clear sign of the currency’s increasing prominence. Athletes and politicians have started receiving parts of their wages in cryptocurrency, while Wall Street has launched exchange-traded funds based on bitcoin futures. Moving forward, there are a plethora of factors to consider in order to assess the incommensurable potential of the cryptocurrency market


Rising Public Interest & Awareness

Meanwhile, public interest in cryptocurrencies has risen dramatically: it is a popular topic not just among investors, but also in the mainstream culture, thanks to the efforts of everyone from long-time investors like Elon Musk to ordinary people. For instance, Finder’s Cryptocurrency Adoption Index indicates that there is a surge in interest in purchasing cryptocurrencies in New Zealand; 9 % of adult internet users in New Zealand, or around 324,000 persons, reported owning bitcoin. Furthermore, Australia has a 22.9 % cryptocurrency ownership rate, which is much higher than the worldwide average of 15.5 %.


Institutional Adoption of Cryptocurrencies

In 2021, major corporations from a wide range of industries indicated an interest in cryptocurrencies and blockchain technology, and in some cases, made investments in these technologies. For example, AMC has just stated that it would begin taking Bitcoin payments by the end of the year if everything goes well. Paypal and Square, for instance, are placing their bets on cryptocurrency by allowing users to buy it via their own platforms. Tesla continues to be hesitant about taking Bitcoin payments, although the company holds billions of dollars worth of cryptocurrency assets. Experts predict that this kind of buy-in will rise in the future.


A Game-Changing Technology?

The blockchain technology that empowers bitcoin and other cryptocurrencies has been lauded as a game-changer across various industries, from shipping and supply chains to banking and healthcare. Distributed ledgers allow previously inconceivable types of economic activity by removing intermediaries and trustworthy participants from computer networks. This potential makes digital currencies an enticing investment for those who believe in their future. For those who believe in that promise, investment in Bitcoin provides an opportunity to earn a high rate of return while also contributing to the technological future.


More real-world usefulness than ever before

Previously, bitcoin values were completely dependent on conjecture. Initially, cryptocurrencies had no practical use, and investors invested in them solely based on their promise. However, this is beginning to change as prominent cryptocurrencies such as Bitcoin and Ethereum establish use in the real world. Bitcoin, for example, is becoming more commonly recognized as a means of payment, and it recently made news when it was declared legal money in El Salvador.

Ethereum has also grown in popularity, notably for decentralized finance (DeFi) and non-fungible tokens (NFTs). NFTs were one of the year’s most popular buzzwords, and since the majority of them are housed on Ethereum’s blockchain, Ethereum stands to gain from the current NFT boom.
DeFi has also seen a surge in popularity during the last year. At the moment, up to $94 billion has been committed to DeFi projects, up from roughly $31 billion a year ago. Ethereum hosts the great majority of DeFi projects, which means that as the industry grows, Ethereum’s growth potential increases as well.


A Censorship-Resistant, Stable Store of Value

Another often-cited rationale for investing in cryptocurrencies is the need for a long-term, dependable store of wealth. In contrast to traditional money, most cryptocurrencies have a finite supply controlled by mathematical algorithms. This eliminates any political entity or government agency’s ability to degrade its worth via inflation. Additionally, because of the cryptographic structure of cryptocurrencies, a government entity cannot tax or seize tokens without the owner’s permission.

This property attracts those concerned about hyper-inflationary occurrences, bank collapses, and other crisis scenarios. Bitcoin, in particular, has garnered attention because of its deflationary and censorship-resistant features, earning it the moniker “digital gold” from proponents.


Cryptocurrency – the ultimate technological opportunity?

To satisfy the appropriate mechanism and governance approach, crypto developers should leverage the technological vantage offered by user-friendly and comprehensive crypto apps. A well-constructed crypto trading app should represent the bridge between normal individuals and experts who facilitate the process of investing.

Putti is prepared to assist those willing to enter this field, as we have been producing world-class applications for decades and are thrilled to enter into the crypto industry soon!