Cryptocurrency has become a global phenomenom in recent years, although much is still to be learned about this evolving technology.

Cryptocurrencies have indeed proven resilient. Investor interest, both retail and institutional, in digital currencies has risen dramatically in recent months. Many early investors who were eager to make gains from the “cryptocurrency craze” have since moved on to other ventures, leaving a smaller group of stalwart HODL-ers behind. But there are still reasons to believe that the cryptocurrency industry has some fight in it left and there are many concerns and worries swirling around the technology and its capacity to disrupt traditional financial systems.

Belief in the crypto currency technology:

Supporters of Cryptocurrencies claim that these financial platforms are inherently not dependent on any systems – that is, they’re not directly tied to any nation-state, government, or body. They argue that cryptocurrency technology is far superior to traditional physical currencies because it is not dependent.

But it’s not entirely accurate. They are still reliant on the underlying infrastructure powering cryptocurrencies ,much of which is located in China. The Chinese government could theoretically make changes to cryptocurrencies at a fundamental level by imposing its will on the data miners who keep them running.

Institutional Investors gets in the Game

The beginning of Institutional Investors started when MicroStrategy CEO Michael Saylor first publicly endorsed Bitcoin. As a publicly traded company dating back to 1989 and known for having lots of capital in excess reserves, Saylor coming out and publicly ringing the alarm of crypto and even calling it “superior to cash” indeed raised some eyebrows among institutions and created a snowball effect. 

Tesla Invested $1.5 Billion Into Bitcoin

Elon Musk, the self-proclaimed “TechnoKing” of Tesla, has recently made quite a name for himself in headlines. From being a leader of the meme-coin Dogecoin and likely having a massive hand in pumping Bitcoin after updating his Twitter bio to include Bitcoin and subsequently buying $1.5 billion worth of Bitcoin for Tesla, Musk and Saylor have put a face to the institutional acceptance towards cryptocurrency. Recently, Tesla has also made a announcement that customers can now buy their vehicles using Bitcoin. 

Paypal as an early adopter

PayPal has origins as being one of the pioneers in the digital world. With a history of promoting and simplifying transactions across borders within minutes, it only makes sense for them to jump on the board for cryptocurrency. 

Recently, they have introduced the ability for people to both buy and make transactions with cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Even though crypto enthusiasts have criticized PayPal for not letting users transfer their coins to a private wallet. Perhaps this is a feature that can come in the future and it’s a step in the right direction.  

Mastercard and Visa have joined the flow

Two of the biggest platforms for making payments worldwide have both publicly endorsed the use of Bitcoin. Visa is allowing transactions with stablecoins on the Ethereum blockchain. 

Mastercard has then followed and recently announced that their customers would begin transactions with crypto sometime in 2021. With two big payment giants hopping on the train, it seems that the doors are now open for broader mainstream adoption and practical use among business owners in the upcoming years.

Stablecoins Take the Lead

Stablecoins might see growth next year for two reasons. First one is a result of the long-term instability of non-centralized tokens and second is the current leader in the stablecoin industry, tether, is positioned to be dethroned.

As one of the earliest stablecoins to reach the mainstream, Tether (USDT) has suffered a number of highly publicized growing pains while the sub-industry developed. Other stablecoins have already entered the field, aiming to take away its dominance.

Launch of Bitcoin ETFs

What is an ETF ?

An ETF is an investment vehicle that tracks the performance of a particular asset or group of assets. ETFs allow investors to diversify their investments without actually owning the assets themselves. For individuals looking to focus only on gains and losses, ETFs provide a simpler alternative to buying and selling individual assets.

A bitcoin ETF is one that mimics the price of the most popular digital currency in the world. This allows investors to buy into the ETF without going through the complicated process of trading bitcoin itself. Moreover, because holders of the ETF won’t be directly invested in bitcoin itself, they will not have to worry about the complex storage and security procedures required of cryptocurrency investors.

What we know about crypto future

While it’s difficult to say which, if any, digital currencies will see dramatic price gains in 2021, we can say for sure that cryptocurrency is not going away anytime soon. Blockchain which is the underlying technology behind many cryptocurrencies has spread far outside of the digital currency industry and is likely to see new applications this year. Governments and regulators will continue to tackle with how to best facilitate and control digital tokens.

The prosperity and productivity of cryptocurrencies might have come and gone, but it is also a  possible thing that the crypto market still has a lot of upsides to go. But one thing is still a mystery whether cryptocurrencies were once positioned to upend the entire financial system. The fame of cryptocurreny will not end easily, so expect to hear from cryptocurrency-or at least its number-one fans-for another year at least.

Final words:

The cryptocurrencies are a hot topic in the global financial system. Their growth has been able to gain the attention of many speculators. Only after cryptocurrencies gain trust, they will be used on a wider scale. If the cryptocurrencies fail to gain that trust, then their boom might decline. They are still in their infancy, and it is not sure as to when they will be maturely traded in the markets globally. Many different cryptocurrencies have gained the required attention. Some nations have started to issue national cryptocurrencies. It is quite possible that shortly, the bitcoins might have a way for cryptocurrencies to flourish.

Few historical examples are that the advent of the radio in fact led to increased record sales, and ereaders such as the Kindle have increased book sales. Now, we obtain news from the New York Times, blogs, Twitter, and personalized drone feeds alike. We consume media from both large entertainment companies and YouTube. Thus, over time, blockchain technology could exist in a larger ecosystem with both centralized and decentralized models.

There may be a large collection of both fiat currencies and cryptocurrencies existing side by side in future.