Introduction
Cryptocurrency is one of the fastest growing trends in today’s economy. In this article, we’ll take a look at how cryptocurrencies came about and where they’re headed in the future.
Cryptocurrencies have been around for almost ten years, but it wasn’t until recently that they really gained popularity.
What are cryptocurrencies
Cryptocurrencies are digital currencies that use cryptography to secure transactions and control the creation of new units of currency. Cryptocurrencies use decentralized control as opposed to centralized electronic money/centralized banking systems. .
The decentralized control of each cryptocurrency works through distributed ledger technology called a blockchain, which is used to confirm pending transactions by adding them to an immutable public ledger visible to everyone, thereby preventing fraud
Over time, the number of cryptocurrencies on the market has increased. The market is growing at a very fast rate. It is expected that the number of cryptocurrencies on the market will increase in number and volume. As such, you should be prepared for what’s to come if you want to invest in cryptocurrency.
The market is growing at a very fast rate. It is expected that the number of cryptocurrencies on the market will increase in number and volume. As such, you should be prepared for what’s to come if you want to invest in cryptocurrency.
On the rise
According to blockchain technology experts, the number of cryptocurrencies will continue to increase.
You might be wondering, what happens if a cryptocurrency does not work well? Can it be replaced by another? According to observers, the number of cryptocurrencies will continue to increase – mainly because new technologies are being developed every day, which means more people will learn about cryptocurrencies and invest in them.
The number of cryptocurrencies available today is already quite large – it increased by 50% in 2018 alone. Since this trend shows no signs of slowing down, there may be even more new currencies added over time – meaning that if you don’t have enough money today, you’ll likely have even less tomorrow because there will be too many options out there competing against each other for users’ attention (and dollars).
But the overriding message is: cryptocurrency is here to stay, and will only continue to gain popularity in the future.
Challenges ahead
As the cryptocurrency market grows, it will have increasing focus from regulators who will be studying how cryptocurrency is used, and what benefits it can add to an economy. The rather decentralised nature of crypto currency attracts alot of misuse and risk, which may cause its downfall before it can progress further.
As we have seen through events in Canada where digital wallets were frozen, to the closing of centralised cryptocurrency exchanges, in uncertain economic times, volatility remains, and therefore beyond more established tokens such as Bitcoin and Ether who else emerges.
Looking forward
Despite the inherent risks, more investors, businesses and economies are embracing cryptocurrency as a new form of investment asset or method of transaction. As blockchain technology evolves, and new innovations and projects launch, in amongst all the negativity, there will be continued positive horizons ahead for the digital currency ecosystem.