What is Cryptocurrency?
Cryptocurrency is a digital asset created to be acceptable as a medium of exchange and a store of value, by use of cryptography as a securing method to control creation of additional units of the currency. Bitcoin is a good example of cryptocurrency used around the world. Since the inception of Bitcoin, there has been other cryptocurrencies that have been created and good examples are Ethereum, Ripple, and Litecoin among many others. However, by market capitalization, Bitcoin remains the largest block chain network. Acceptance and Future of Cryptocurrency Global Cryptocurrency market has recently received a widespread speculation and attention from the investor’s communities. There has been an increase in the number of prominent organizations that accept the cryptocurrencies. Notably, a number of mainstream merchants accept cryptocurrency and examples include PayPal, Overstock.com, Expedia, Computer giants Dell, Gyft, and 1-800-flowers. This is an ideal testimony that it may be a matter of time before many more large merchants accept the cryptocurrency for payment. According to Luke Parker, the CEO, Phoenix Pro Studios 2015, there is nothing imaginable, short of all life on earth being destroyed, that could stop Bitcoin becoming the world reserve currency one day. The Cryptocurrency acceptance has received a boost from the education industry. A good example is the recent introduction of classes about Bitcoin and other cryptocurrencies by the University of Ohio. Other Universities and colleges have followed the trend by accepting the Bitcoin as a means of Tuition fee payment a move that is set to help bring cryptocurrency to the limelight for the world to accept it fully. Cryptocurrency Markets have begun to mature and investors together with the traders are playing out their roles very well. This therefore means that in the near future, we will see stock markets around the crypto world coming up. What this therefore suggests is that the world should begin thinking about a place to move their wealth to once traditional currencies fail. My view on what the future holds for cryptocurrencies market is that the market is obviously set to receive global acceptance. About 5-10 years, is all I expect it will take for the world to fully accepting the Bitcoin. With the very high acceptance level by institutions in both China and Japan, cryptocurrencies value has also risen overtime. What this then means for the investors is that they can invest now and rip later when the prices are at the highest. There is no doubt that the cryptocurrency market is just like any other market with very high volatility. What is high today could go down tomorrow. Largely, for the better part of 2017 we have seen the price of Bitcoin going upward causing fears of there being a bubble in the market causing worst ever disaster. However, the main challenge is the government’s acceptance to allow Bitcoin to be used. Around the world, central banks have raised an alarm on the Bitcoin basically because it possesses a challenge to the government’s ability to influence prices of credit for world’s economy. Another cause of concern to the governments is the declining consumer confidence on traditional currencies. Conclusion Cryptocurrencies future is widely dependent on a number of factors. These range from Governments regulation to general acceptance by the world economic zones. I can therefore conclude that Bitcoin success will ride on user experience and success of its users will ultimately lead to growth of its acceptance in international trade.
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AuthorDavid is a Senior Business Consultant at Njuri Consultium Archives
November 2018
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