The Future of Cryptocurrency
Cryptocurrencies, which have been around for a little over a decade now, are changing the landscape of transactions, and in turn, value. Simply speaking, a cryptocurrency is an encrypted and decentralized digital currency. Created after the economic crisis of 2008 as an alternative method for financial transactions, Cryptocurrencies are mostly based on blockchain technology which is a permanent and unalterable decentralized digital ledger system.
Bitcoin was the very first cryptocurrency but since its unveiling in 2009, there have been thousands of alternative cryptos or ‘altcoins’ following the lead of Bitcoin in the crypto space. All digital coins have various properties and offer different opportunities. Termed as the market of the future, the cryptocurrency market is estimated to be worth $1 Trillion in 2021 and the number has only increased ever since. In plain and simple words, cryptocurrency is the currency of the people.
The governments and authorities around the world which were previously against the notion of cryptocurrency, are now recognizing the true powers of cryptocurrency and looking forward to issuing their own cryptocurrencies. Experts have suggested that in the next few years, the world will witness a rise in the emergence of national cryptocurrencies. The previous decade was concerned with the adoption and the regulation of cryptocurrency but the trends say that the coming decade is predicting National cryptocurrencies.
Some countries have already jumped on this bandwagon of national cryptocurrencies. Venezuela, for example, was the first country to issue a national cryptocurrency. The country released Petro Crypto in February of 2018 which was issued to control the impact of US sanctions on the country. Petro Cryptocurrency was also devised to enhance international funding and support the free-falling Venezuelan Bolivar currency. The Petro was designed with the backing of abundant natural resources available in Venezuela such as Oil, Gas, Diamonds and Gold. This Cryptocurrency received national backing after the President announced a dedicated youth bank which will be funded entirely with the national cryptocurrency in May of 2018.
Iran was also one of the first countries to issue their cryptocurrency. It is uncanny that Iran faces similar US sanctions as Venezuela which is highly damaging to its resource-dependent economy. The Central bank of Iran was finalizing the plan of their national cryptocurrency in late 2018.
One of the major economies that are planning to launch its national cryptocurrency is China and the country has started digging into dedicated blockchain research for the same. With China taking the lead, other major economies too will be looking forward to creating their cryptocurrencies. Countries such as Japan, Sweden, Russia, Israel, Tunisia, Senegal and Estonia are already in advanced stages of issuing their national currencies.
Other countries are sure to follow in the footsteps of these countries and issue their national cryptocurrencies. When countries start issuing national cryptocurrencies, they will provide a much safer way into the world of cryptocurrencies. The cryptocurrencies will be more regulated, authorized, become legal (as in some countries cryptos are still illegal) and become more accessible for all. It is possible that in the coming future every household will be using cryptocurrencies in some way or another.
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