For the past decade, the concept of currency has drastically evolved from plastic to digital making cryptocurrencies more and more adoptable as time passes by. This could not have happened without the development of the highly reliable blockchain technology which guarantees the accuracy of transactions within a self-monitored, decentralized, regulatory-free system.
Bitcoin experienced almost $3,400 decrease in value from 2017 till 2018 accounting to a loss of about three-quarters of its value only to skyrocket again since then reaching an incredible value of 56508.60 USD for each bitcoin. Ethereum another decentralized, open-source blockchain with smart contract functionality, fell from an early-year high of $1,300 to just $91 by December 2018 before rallying back to over $450 by the end of 2020.
Cryptocurrencies have been among the most talked-about investment options in 2020 after catching a remarkable international attention. Nowadays, more companies, including Microsoft, Expedia, Shopify, Overstock, PayPal, and more, are accepting bitcoin and other cryptocurrencies as payment, despite volatility warnings.
While large corporate companies started to accept cryptocurrencies as a viable payment option, other companies still aren’t convinced cryptocurrencies can be used as a mainstream form of payment.
In general, cryptocurrencies are not regulated enough, and this lack of regulation makes cryptocurrency sensitive to headlines. However, and after the financial crisis in 2008, investors lost trust in the traditional banking and financial sector making Bitcoin an attractive option for risk averse investors.
Nevertheless, many investors are still skeptical when it comes to cryptocurrencies and believe that their future is still unknown.
For a cryptocurrency to be successful and to preserve its value, drastic changes should occur in the market while focusing on security improvements. However, despite all associated risk, cryptocurrencies remain an interesting investment and payment option.