Sometimes people put it away as a hype, a fashion phenomenon, something that is only temporarily popular. Bitcoin, Dogecoin, Ethereum: will they still be there in 20 years? Many experts are convinced that cryptocurrencies have come and will remain.
Sometimes it seems like everyone wants to do something with cryptocurrencies or NFTs. There’s a lot of talk about it: A tweet from Elon Musk could even topple the price of the most famous cryptocurrency, Bitcoin. Or just rise. cryptocurrencies is an exciting business, though many crypto investors will say it is not that bad. It is at least a sport that more and more people have started in a short time.
18,000 different cryptocurrencies
Of course, it is not said that, for example, a coin like Dogecoin will still exist in 20 years, because there are a lot of coins. According to CoinMarketCap, there are more than 18,000 different cryptocurrencies, and developments are rapidly following one another. In addition, there are a number of coins that play key roles: Bitcoin is seen as digital gold (which, after all, is only so much available), while Ethereum is digital oil, thanks in part to the important role it plays in decentralizing money and how they are used to buy NFTs, for example.
That buy cryptocurrency also gets easier. In the past, the explanation was more complicated: you have to make a wallet, program all sorts of things and so on. Today, that is no longer the case, and one platform after another is where you have already created an account with a wallet with a few clicks, and with which you can trade your cryptocurrencies. It makes it accessible to many people, and with all the buzz around it now, more people are starting to get involved in it.
At the same time, more than ever, cryptocurrencies are an invention that results from major international collaborations between developers located around the world. They can work on their laptop wherever they want and that makes it a development that is very comfortable in that regard. You can work with crypto anywhere in the world because you only need a small amount.
The stock market
So much traction that also arouses interest in investors who want more money from this virtual money. There are now even crypto companies on the stock exchange, such as Coinbase Global (COIN). Bitcoin was worth nothing when it first appeared in 2009, but if you own one now, you will be tens of thousands of dollars richer. The exchange rate can fluctuate significantly, but in general there is still some entry.
In fact, there are experts who say that the popularity of crypto is about the same as the popularity of the internet. In the 90s, people still thought it was pretty fun, such a virtual encyclopedia. However, we have been doing everything with it for years now. More and more people know how to find crypto, just as in the 90s more and more people managed to find the internet.
In addition, there are also many large tech companies involved in cryptocurrencies. Tech companies can be rich and powerful, but ultimately they also need to invest in new developments that will ultimately pay off. The fact that, for example, Twitter’s Jack Dorsey develops all kinds of applications around cryptocurrencies, ie. Paypal is working on it, and Google’s parent company Alphabet is creating a blockchain department showing that these companies and people who are hugely influential believe in it.
The banks see it too. Though ABN Amro In their report, they write that they do not see crypto as a legal tender now and in the future, but see tokenization as something that will only increase in the future. The CEO of Back of Sharjah in the United Arab Emirates also agrees: they are difficult to regulate and at the same time they are permanent. He also acknowledges that banks do not yet fully understand the technology. He believes that crypto is really becoming an essential part of the banking system.
All this does not mean that investing in cryptocurrency is always a good, future-proof choice. The expectation that of all the tens of thousands of different cryptocurrencies, there are definitely variants that are disappearing and there is not always an upward trend in the price. It is also risky to invest in NFTs, for example, because what they are worth now can be completely different at any given time. So invest only with money you can afford to lose. It is also smart to first do a lot of research on the coins you would like to invest in and contact people who already have experience with this coin.
Of course, it does not help you against potential losses or gains, but it can be very valuable to get a consultation. Apart from that, it is of course also pleasant to talk to like-minded people. One can probably talk for a long time, because the expectation is that crypto really does not just disappear.
[Fotocredits – artrachen © Adobe Stock]