Despite a year of ups and downs, experts believe that cryptocurrencies appear to be the future of money. It seems that the growing acceptance of cryptocurrencies in financial systems has helped foster the belief that they are here to stay. The expected growth of the crypto space may attract more users, offering greater asset control and broader accessibility. โThis year is expected to move forward, face challenges and welcome new ideas in the world of digital money. Cryptocurrencies were once considered a new and experimental idea, but now they seem to have become a factor in shaping the future of money,โ Pranav Srivan Elankovan, co-founder of Crypfi.Io, a cryptocurrency trading platform, told FE-TransformX. .
About eight in 10 medical device e-commerce vendors can offer cryptocurrencypayments based on your website in 2024, according to data from a survey conducted in early 2022 by Statista, a market research platform. By the end of 2021, consumers were reportedly hoping to use cryptocurrencies as a payment method for travel, while the industry Those that focused the most on cryptocurrency-based payments were luxury goods. Efforts by cryptocurrency companies and advocates to raise awareness about cryptocurrencies and blockchain technology are believed to have been fruitful. This awareness ultimately resulted in over 15% considering cryptocurrencies as the future of money11% as an alternative to traditional financial systems and another 11% as the future of digital property, according to information from BanklessTimes.com, a market research platform.
Cryptocurrency: the money of the new era
The global costs of cybercrime could reach $10.5 trillion annually by 2025, highlighting the need to improve cybersecurity measures, according to insights from Cybersecurity Ventures. With the apparent increase in cybersecurity threats, cryptocurrencies, with their decentralized user-based network key, provide a secure form of currency exchange. In addition to this cryptocurrency being a digital currency, it can be accessed anytime, anywhere. One of the best use cases for cryptocurrency is that it allows for fast and cheap exchange of funds. โBlockchain being the underlying technology of digital assets, such as cryptocurrencies, can provide a public and transparent ledger of all transactions, reducing fraudulent activities and preventing illicit use of digital assets. Furthermore, digital assets can drive financial inclusion and offer modern financial services to the unbanked population around the world,โ highlighted Dhruvil Shah, senior vice president of technology at Liminal Custody Solutions, an automated digital asset wallet and custody platform. .
bitcoin It rose above $45,000 on January 2, 2024, for the first time since April 2022, according to information from Reuters. Bitcoin reportedly hit a 21-month high of $45,532, having gained 156% in the past year since 2020. It was last up 2.5% at $45,318, but remains far from the all-time high of $69,000 that touched in November 2021. Apart from this, Ether was at 1.45. % higher to $2,386 on January 2, 2024, after having risen 91% in 2023. โBitcoin started 2024 on a strong note, as it surpassed the $45,000 mark for the first time since April 2022. The overall capital of the Cryptocurrency market hit the $1.75 trillion mark with Bitcoin and Ethereum leading the effort. The expected optimism around the ETF approval by the SEC may fuel the current market rally as its approval is expected,โ said Shivam Thakral, CEO of BuyUcoin, a digital asset exchange.
The road ahead
Experts believe that despite the failure of privately issued cryptocurrencies, other parts of digital money, such as central bank digital currency, tokenized deposits, and regulated stablecoins, could bring payments innovation. โTokenized deposits can reduce settlement risk through end-to-end atomic settlement for the payment process. Transparency and programmability are also inherent to transactions enabled by tokenized deposits. โCentral bank digital currencies (CBDCs), especially wholesale CBDCs, are gaining traction in cross-border trade and capital markets,โ Sharat Chandra, co-founder of India Blockchain Forum, a blockchain platform, explained, adding that the future of the monetary system may be a coexistence of CBDCs, tokenized deposits, and well-regulated stablecoins.
Cryptocurrency trader Scott Melker reportedly highlighted on Crypto News that Bitcoin could rise to $54,000 in the coming days once the SEC approves the ETF. Furthermore, BTC may rise to $50,000 within a month after moving to the BTC Spot ETF in January, according to information from Matrixport.
As the global landscape explores digital currencies, the expected benefits of faster payments and reduced international transfer costs highlight the transformative possibilities. However, concerns such as too many digital currency options, a steep learning curve, transaction costs, price volatility, and the slow progress of a CBDC in the United States, among others, underscore the complex road ahead. โOverall, the current cryptocurrency market may be bullish, especially as the Bitcoin (BTC) halving event approaches and traditional institutions' investment interest in BTC increases. However, the cryptocurrency market has high volatility. Although there are opportunities to achieve wealth effects, there are also greater market risks,โ concluded Ryan Lee, chief research analyst at Bitget, a crypto trading platform.
