Most people are not always aware of how cryptocurrency works – all because of its mysterious origins.
The term “cryptocurrency” appeared long enough for virtual worlds nine years ago. But in some countries, they are still not used to take electronic money seriously.
Surprisingly, in 2020, with contactless payments and an abundance of Internet banks, people with bitcoins are not trusted. Cryptocurrencies, in general, are clearly intimidated considering the digitally black markets and plenty of arms vendors. But is that really so? Ultimately, cryptocurrency is firmly established among many global financial institutions.
Trillion dollar bias
Yes, the average resident of a developed country still does not envision the work and generation plan of cryptocurrency, which is the main source of most villainous ideas at the moment. Unfortunately, even in a progressive USA, cryptocurrency is not very popular so far – only 16% of Americans invest in it, and 30% consider it money to buy illegal weapons.
Furthermore, it is worth noting that cryptocurrency cryptocurrency is different – today there are about three thousand types of digital money, but only ten of them have real value. The majority of the world’s population uses only one of them – of course, we are talking about bitcoin. It is chosen by 70% of the owners of electronic purses. Even taking into account the low popularity of digital assets, the value of the global cryptocurrency market last year amounted to $ 85,000,000,000.
By the way, bitcoin is also heavily implicated in the infamy of the cryptocurrency market. Bitcoin is often used for drug smuggling in the underground online market. At one time, it was regarded primarily as the digital equivalent of cash, which retained its owner’s anonymity.
Using bitcoin, anyone can visit the Silk Road online drug dealer store and purchase ganja, LSD or cocaine without revealing their data. And this benefit was not completely unilateral. In a sense, the drug trafficking site legalized bitcoin as a means of trade, even though it was used only for illegal cases.
Nevertheless, in the nearly ten years on the market, the value of bitcoin has risen considerably, pushing cryptocurrency to a whole new level. Those who bought at least one bitcoin for $ 600 in 2013 got a chance to sell it in December 2017 for $ 20 thousand.
Change and future
The success of bitcoin and other virtual currencies has changed the industry – according to a study by Visual Objects, more than a quarter of cryptocurrencies owners (38%) used their crypto assets to buy food, while the other 34% Bought clothes using digital money. Many people buy gold for bitcoin (21%), and invest 29% of the shares in cryptocurrency, helping it build a serious investment portfolio.
According to analysts at Chainalysis, last year, the equivalent of $ 1 trillion was transferred through cryptocurrency transactions. And only 1.1% of these transactions were related to illegal activities. According to experts, the industry now looks much healthier than in the first years of its existence, when significant activity took place in the Darknet markets.
Young people are increasingly paying with cryptocurrency in Xbox stores, and more mature millennials use bitcoin to purchase airline tickets and concert tickets. Thus, digital cash is fast becoming a legal and clean payment method. The more companies start accepting cryptocurrencies, the better its social rating among financial resources.
Microsoft founder Bill Gates has already called cryptocurrency a possible solution to the income inequality problem.
“If we were building a financial system from scratch today, we would do it on a digital platform,” Gates said. “Digital technology can reduce transaction costs by up to 90%, providing near-universal access to innovative financial products and services.”
Facebook, for its part, also plans to launch its own cryptocurrency called Tula. Such steps make the cryptocurrency economy more legitimate.
Read: Bitcoin Cashback: Folded Crypto is creating a new service for startup customers.