Cryptocurrencies seem everywhere today, especially for the ‘hype’ they’ve generated over the years. But, for any fresher or beginner with 0 ideas of the concept, cryptos are a way to multiply your investments.
But is that all? Considering the market volatility, it’s apparent that cryptos aren’t a wild bet or a raging trend that divides or multiplies your investment at a random speed. Adding to it, the latest events and fall of the mammoths like FTX and Tera have made many investors and analysts believe that the ‘bubble has burst’ and that it’s the ‘end of the market.’
However, what if we told you that cryptos are an evolving concept and the crypto market cap is still in its infancy? Don’t believe us?
Continue reading as we gather insightful insights from the industry and cite examples suggesting that the cryptocurrency market is still evolving and there’s more to its story.
A Short Insight Into Cryptocurrencies: Their Introduction & Continued Evolution
While the history of digital money dates back to the 1980s, it wasn’t until 2009 that the concept of a decentralized cryptocurrency was realized. Bitcoin (BTC), created by some ‘Satoshi Nakamoto’, initiated the start of a trillion-dollar industry. Since this name can’t be associated with any person or persons, many consider it to be an alias.
Following the launch and growth of Bitcoin, other cryptocurrencies like Litecoin and Namecoin appeared in 2011. Following this, the market witnessed other coins like Peercoin, and Ethereum, among several others. Fast forward to 2022, we have over 20,000+ crypto tokens, all backed by a unique fundamental that aims to simplify Blockchain and decentralization concepts.
Cryptos Have Been Continually Evolving
Throughout its initial years; cryptocurrencies have been a mere form of investment with no other utility. Besides, cryptos were not immediately a widespread trend when they first appeared. For several years, cryptos were only used in specific environments to initiate transactions in places like the dark web.
This was primarily due to the negative light that any ‘alternative currency’ could acquire. Besides, most businesses and tech enthusiasts weren’t familiar with such a decentralized payment method, primarily due to its limited availability around different exchanges.
Interestingly, things changed for the industry in 2016 when Ethereum decided to switch to a more transparent Blockchain after splitting from its initial Ether program. With the onset of a more transparent, flexible ledger, businesses could utilize the Blockchain to launch their ERC-20 tokens and use the infrastructure for developing decentralized applications (dApps).
Fast forward to 2022, we have several use cases of cryptocurrencies. Cryptos have evolved greatly over time, from digital tokens being used in everyday transactions to buying a Tesla or even purchasing a gift card. In addition, businesses and government bodies have continually evolved to include cryptos as legal tender.
Increasing Use Cases Of Cryptos Into Newer Elements
While the crypto market was initially limited as an investment tool, the introduction of Metaverse embarked on a new journey for the decentralized token. Just when analysts and enthusiasts thought the market had reached its full potential, the use of NFT-based digital art and top cryptocurrencies offered a new perspective to ordinary people.
The latest developments have pushed the popularity and usability of cryptos, making it common among gamers and other beginner investors setting foot into the industry. Today, cryptos are a commonly accepted means of payment in the online casino sector.
However, while we continue to explore the introduction of new elements into the industry, the continually evolving crypto market has several aspects of development left behind. Let’s figure out some of these aspects as we delve into these aspects in the following section.
Keys To Market Development For Crypto
For The Common Consumers
For consumers, cryptos are a means of faster and cheaper peer-to-peer transactions than those offered by traditional services using fiat money. Adding to it, the decentralized concept adds to the anonymity factor, saving users from needing to provide personal details.
However, while cryptos continue to gain legal tender as a payment option, the price volatility and speculative investments opportunity invoke a negative sentiment regarding these currencies. Besides, the volatility further keeps consumers from using cryptos to purchase services and goods.
Tech Developers
Many software engineers and tech-savvy enthusiasts have dedicated their time to mining cryptos. In contrast, others have concentrated on more business-oriented endeavors like creating wallet services, exchanges, and alternative tokens.
In our opinion, the market has only begun to draw talent with the depth, breadth, and market focus required to advance the sector. However, consumers and businesses must regard cryptos as a convenient alternative to everyday transactions to increase overall acceptance.
Investors
While the volatility aspect of the crypto market is a challenge, investors are optimistic about the potential presented by cryptos and encryption in general. Moreover, these investors have strong reasons to be upbeat about the previously addressed volatility clause because of the underlying technology’s ‘inherent value.’
Overall, while the market will continue to present an unpredictable movement and cryptocurrency prices will fluctuate, things will be positive in the long run. Besides, investors might have to wait longer to enjoy continued stability and better returns from the market.
What Does The Future Hold For The Crypto Industry?
No matter how groundbreaking, we can’t ignore that cryptos are relatively new as both an investment and technology. It’s still a speculative investment with no historical data to base forecasts.
So while we may have our speculations on Bitcoin’s value in the coming months and years, nobody in particular truly knows. Therefore, for long-term wealth creation, it is crucial only to invest what you are willing to lose and to stay with more traditional assets.
Lastly, talking of the ‘evolution’ phase, YES, the crypto industry is still in its infancy and an evolving concept. Currently, we’re only at the initial phases of understanding the technology that runs the cryptocurrencies, and there’s more to come.
