Ever since the world of cryptocurrency and the blockchain was released, there have been many naysayers across the entire financial world. Even back in 2017 when we saw the monster boom of crypto, and Bitcoin prices shot up to $20,000, many didn’t believe in it. Indeed as the bear run followed that pump, this gave the doubters much more to say about the eventual failure of the idea. Experts like Robert Testagrossa however have always believed and they knew that one day this would in fact be the new normal for the world of finance. Over the last 12 months, these predictions are very much coming to fruition. No matter what the naysayers may be talking about, here is why crypto is not going anywhere for some time.
In the world of economics, fungibility refers to parts of a product which are interchangeable and salable. When it comes to non-fungible tokens, these are products or creations which are not interchangeable. The world of NFTs is absolutely booming right now, especially in the world of art. This has created a whole new sector in the crypto world, because now people are creating and selling artwork, music and even tickets, which are sold through the blockchain to a single buyer. The wider that crypto becomes in this regard, the more faith there will be.
This year more than ever before we have seen enormous companies investing in cryptocurrency. Most notably we have seen the likes of Elon Musk and Tesla go really big on their investments and this has given others the confidence to do exactly the same. These companies are not looking to invest in risky trades, which is why we can be confident that they are very much in it for the long haul.
Another key reason why we won’t see any signs of crypto slowing down is the acceptance which they have now gained from so many traditional financial institutes and banks. Over the last 6 months alone we have seen the likes of New York bank BNY Mellon offer crypto holding for its clients, and the likes of JP Morgan are even getting on board. Beyond this you can now buy crypto using MasterCard and PayPal, and the are not companies who jump onto trends for no reason.
Leveling the Playing Field
Ultimately there is a sense that cryptocurrency is going to level the playing field with regards to finance. For so long we have seen countries and the world economy pegged to the success or failure of the dollar, and that has seriously held some countries back. Given that crypto can bring about real change around the world, we can certainly expect more and more national governments looking at taking an interest in what crypto can do for them.
These are the reasons why we are not going to see crypto slowing down any time soon, what do you think about it?
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