Cryptocurrencies have gone on a rollercoaster since their inception. If you follow the markets of any one cryptocurrency, you would see a very specific and volatile picture. If you look at the markets as a whole, patterns begin to emerge in terms of the ups and downs in their value. However, through all of this, at least one thing has remained constant: more and more merchants accept Bitcoin, Ethereum, and other cryptocurrencies every day.
When looking at the history of the acceptance of cryptocurrencies, we should start from the beginning. Cryptocurrencies would be any form of money that does not have a physical counterpart. In other words, it is a sort of digital cash. The first cryptocurrency to begin to gain widespread acceptance was Bitcoin, and the blog at InsiderMonkey has previously detailed how it is transforming business.
Bitcoin was able to gain legitimacy with a simple yet genius move. They moved the authenticating ledger into the public sphere. Anyone can double-check the identifying marks for every coin and trace it, meaning that no one can game the system. This technological advancement is what helped take cryptocurrencies from obscure techie forums into the mainstream in just a few years. We are now in a position where companies big and small are accepting cryptocurrencies.
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New Bitcoins enter the market on a timed schedule. No central governing authority exists to produce more of them. In order to earn them, people can set up giant computers to authenticate other transactions, and are then rewarded with more Bitcoins. It is a self-sustaining system.
One of the biggest seals of approval and legitimacy came when PayPal announced they would be accepting transactions in certain cryptocurrencies. This is a huge company in any sense of the word. As the world’s 204th largest, according to Forbes in 2019, it is a goliath that is available in the USA, China, Europe, and many other countries around the world.
But the acceptance in PayPal is also key because PayPal is used at many more websites to complete transactions or to send money to friends. In other words, it opened up the ability to use Cryptocurrencies in many more outlets than you might expect.
Another common way to use Bitcoins and other cryptocurrencies is at online sports gambling sites. Asiabet betting experts can help you find the best sites to bet on football in India, for example. It is a good idea to use a site that vets online sportsbooks before you deposit your digital cash there. They provide reviews and lists of deposit methods, so you can make sure it is the right place for you and your cryptocurrencies.
Recently, another big fish has bit the Bitcoin bait. Amazon is strongly considering plans to accept payments in cryptocurrencies. In fact, after Amazon posted a job announcement looking for a Digital Currency and Blockchain Product Lead, both Bitcoin and Amazon surged in value. Amazon has only grown during the pandemic. In 2020, it grew 38%, making the second largest company in the world behind Walmart, according to Forbes. With such a giant company as Amazon potentially jumping into cryptocurrency, you know it is only a matter of time before others jump on board.
People who have opened up cryptocurrency wallets have been using them as an investment for a long time. Many have made fortunes by buying extremely cheap cryptocurrencies that increase their value tenfold in only a few months. Others have found ruin in the same market, as the ups and downs of the digital money markets are notoriously difficult to predict. However, more and more customers are following these merchants in using cryptocurrencies as a form of exchange as well. In other words, people are finally using cryptocurrency as currency.
So, what advantages do cryptos offer over fiat currencies? One benefit is the increased anonymity of transactions that use cryptocurrency. The only thing tracking them is the unique code, but you do not need to have your private identifying documents associated with it, like you do at a traditional bank. Traditional banks are required by KYC (know your clients) regulations to collect and store identifying data on their customers. Because blockchain technologies such as Bitcoin are decentralized, there is no central institution for the government to regulate.
This is one reason they call it “digital cash.” Like cash, it is nearly impossible to trace, but unlike cash, it is ready made for the internet age. Online transactions are no problem for cryptocurrencies. In fact, that is basically the only type of transaction available.
The main impediment to the take-off of cryptocurrencies has been something of a catch-22. Because few people were using it, few companies were accepting it. This new technology seems to be gaining critical mass, as more and more merchants and potential customers are signing up and purchasing their digital cash.
