In recent years, there have been many doubts about cryptocurrency. Since 2018, coins like Bitcoin and Ethereum have been steadily growing and gaining attention. Sceptics of cryptocurrencies have missed out. Cryptocurrencies like Bitcoin and Ethereum went up with more than 1000% of their old value in the past years, attracting many new investors to the market. This has led to a bigger acceptance of the marker.
A large group of people has accepted crypto and even large institutions are heavily investing in Bitcoin. But how did this transition happen? In this article, you will read the most important reasons why 2021 will be the year of cryptocurrency.
Regulation is one of the reasons why crypto is gaining acceptance worldwide. More and more countries will be requiring a crypto broker, wallet provider, or exchange to be registered by a trustworthy authority. For example in the Netherlands, crypto brokers like Anycoin Direct should be registered and regulated by the Dutch Central Bank. This trend has led to increasing confidence in cryptocurrency, especially for businesses and institutional investors.
Payment through cryptocurrency
Five years ago it was very hard to buy products or services with cryptocurrency. Nowadays many companies have integrated the possibility to buy and sell products with Bitcoin. At the time of writing, PayPal has incorporated Bitcoin and several other institutions are planning to do so in the near future. Companies such as Starbucks, Microsoft, Home Depot and Whole Foods, now make it possible to pay with Bitcoin. Even banks are starting to get involved in the market. They are looking into the possibility of storing cryptocurrency in their banks, and even create a Central Bank Digital Currencies (more on that later).
It’s no secret that major corporates are getting interested in cryptocurrency. Companies like Grayscale and Square have invested heavily in Bitcoin in the past year, meaning that the trust among big agencies is increasing. The confidence of corporations in crypto says a lot about the progress the crypto
industry has made in recent years. Of course, it would be a bad investment if the expectation would be that the Bitcoin price would drop significantly in the next 10 years.
Building upon cryptocurrencies
Crypto-currencies are slowly but surely beginning to provide products or services that can be of great value. Take Vechain as an example. This company is a BaaS company (Blockchain as a service). Vechain equips products with smart chips that allow the entire life cycle of a product to be monitored. Innovative projects like this will be the gateway to a more widespread market in the coming years.
Central Bank Digital Currencies (CBDC)
A central bank watches over the commercial banking system of a country. These institutions are currently developing their own digital currencies called Central Bank Digital Currencies (CBDC). A CBDC is a blockchain-based and government-issued digital currency. Coins like this will be traded as a form of fiat currency. However, currently an official cryptocurrency supported by a central bank does not exist yet. Several countries are currently exploring the possibilities concerning this new concept of digital money. For example, England, Canada and even China are currently testing and experimenting with CBDC’s.
The above-mentioned recent developments will have a tremendous impact on the crypto landscape in the upcoming years. In the past, many sceptics used to say that cryptocurrencies like Bitcoin were just a scam. Nowadays big companies like Square, Wholefoods and spokesman like Elon Musk are heavily promoting cryptocurrencies because of its potential. Of course, there is no way for us to tell you what is going to happen to this industry! However, we can state that the industry is currently in an upwards trend, and is booming with new and innovative projects