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The coming crypto effects

No one can deny the huge strides that cryptocurrencies have made and continue to make. By all indications, this trend is going to be continuing.

crypto currency bitcoin price fluctuations
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Cryptocurrencies seem to have come from the heights of obscurity to reach the incredible levels of success that they have today.

These days, there are almost daily headlines of new cryptocurrencies, price fluctuations, investor decisions, etc. You reading this is a testament to both the popularity and relevance that cryptocurrencies have achieved.

In an industry such as this one, those who are forward-thinking almost always have a competitive advantage. That means the next logical question is, what effects are cryptocurrency likely to have going forward?

Stablecoin Popularity

While Bitcoin is certainly the trailblazer and the most popular of all the cryptocurrency options out there, one of the inherent drawbacks associated with it and others like it is its extreme levels of volatility.

If you look at what Bitcoin prices have been over any recent running three-year period, you are going to see shocking levels of variance. Of course, this means that any application that depends on stability cannot capitalize on such a currency.

Apart from the decentralization and unregulated nature of the industry, this stands as one of the major deterrents to mainstream adoption. That’s where stablecoins pick up the slack.

Instead of having arbitrary value, stablecoins maintain their value by having an underpinning asset, such as the US dollar. That kind of consistency allows for confident spending power and the potential for Fiat currency conversion for storage as stablecoin.

Additionally, with the convenience transference methods that cryptocurrencies use, it becomes easier to move holdings around by converting them to this form.

Greater Transactional Acceptance

Though this was just covered where stable coins are concerned, it can be true to a lesser extent for other cryptocurrency media too. Businesses have been probing the best approach to integrate cryptocurrency into their needs and operational style.

At its current stage, it goes beyond being speculative, as action is being taken that could shape the way the rest of the world uses cryptocurrency too. 

There’s a paradigm shift from just creating hype around the means of exchange and focusing on greater usability for the future.

Remember there was a time when these currencies were not accepted anywhere as a payment method. Now, while they’re still not mainstream, there are quite a thing few things you can pay for using your crypto holdings.

A Greater Ransomware Payment Tool

Unfortunately, not all the strides that cryptocurrencies make are on the positive side of the spectrum. The carbon footprint, for example, is a well-documented point of contention.

Criminal organizations have also plagued the world using Bitcoin as one of their many tools. Just in case you’re not familiar, a ransomware attack is where malicious entities manage to successfully encrypt documents and other files on a user’s computer. 

A ransom is established, and users are promised decryption upon payment of the sum. Once the ransom is paid, there is no guarantee that decryption is even going to happen.

Much of these criminals have demanded their ransoms be paid in Bitcoin, taking advantage of the anonymity and decentralized style of exchange.

So long as that continues to be one of the core concepts of the crypto industry, it’s not beyond the realm of possibility that criminal activity of this nature is going to ramp up.

Final Remarks

No one can deny the huge strides that cryptocurrencies have made and continue to make. By all indications, this trend is going to be continuing.

Bitcoin is expected to remain at the fore, but the greater adaptation of other currencies and discoveries that lead to more unique use cases is also to be expected. Furthermore, the current trends are likely to continue, making an even greater impact.

Note that the three elements discussed here are not exhaustive, as other opportunities, such as those in the NFT landscape are likely coming too.

If you want to plug in to take advantage of some of these trends, then you may want to think about joining the family.

Have any thoughts on this? Let us know down below in the comments or carry the discussion over to our Twitter or Facebook.

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