Why Crypto?
Why the World Cannot Ignore Crypto Any Longer and its FutureWhy Invest in Cryptocurrencies
Let’s explore why crypto can no longer be ignored and some of the most common reasons why crypto like Bitcoin is an opportunity not to be missed.
Why crypto? Let’s begin
The world and particularly governments have been trying to ignore cryptocurrencies for the last decade. Increasingly, crypto is winning the battle for adoption and survival and is becomingly well-known and used around the world.
No longer just confined to the limitations of a digital currency (which Bitcoin is), there are now 5,000+ cryptocurrencies with a myriad of use cases. The future is bright and crypto can no longer be ignored.
A brief history of cryptocurrencies
From 2008 onwards, we saw the launch of Bitcoin and the start of the cryptocurrency revolution:
- August 2008 – The domain name https://bitcoin.org/ is registered
- October 2008 – Satoshi Nakamoto releases a paper “Bitcoin: A Peer-to-peer Electronic Cash System”
- January 2009 – The first transaction on Bitcoin occurs where computer programmer Hal Finney is paid ten bitcoins by Satoshi Nakamoto
- February 2010 – The first real-life transaction occurs. Two Papa John Pizzas are bought for 10,000 Bitcoins by Bitcoin miner Laszlo Hanyecz! At today’s valuation, those pizzas cost 606 million dollars! Check today’s valuation for Bitcoin at Coindesk
- October 2012 – Coinbase is launched, today this is one of the most well-recognised cryptocurrency exchanges and has over seventy-three million registered users
- August 2014 – Microsoft enable Bitcoin transactions for their apps, games and other digital content
- July 2015 – Ethereum launches on 30th July, 2015 – this is now the second largest cryptocurrency
- March 2017 – For the first time, one Bitcoin is now worth more than 1oz of gold
- May 2017 – There are now over 1,000 cryptocurrencies trading
- January to November 2018 – The total market capitalization of all cryptocurrencies fell over $700billion to an aggregate value of $139billion. This shows the volatility of cryptocurrencies, which have well and truly bounced back since – Source: CNBC
- June 2019 – Facebook announces the future launch of their Libra digital currency and supporting Calibra digital wallet (this has subsequently been rebranded as Novi)
- July 2020 – Ethereum becomes the most-used blockchain, with the $ value exceeding that traded on Bitcoin
- September 2021 – El Salvador becomes the first country to adopt Bitcoin as legal tender
- November 2021 – There are now 5,000+ cryptocurrencies trading with a total market capitalisation of $3,049 billion – Source: Statista
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Cryptocurrencies have an exciting future ahead
We have told you about the past, but we know what you are thinking (”what about the future”), here we focus on the exciting future ahead for cryptocurrencies. So let’s take a look at some of the opportunities ahead for crypto.
These are just a few examples of the commercial uses of cryptocurrencies. We could have listed hundreds of uses! Brands like these prove cryptocurrencies are here for the long-term:
- Auctioneers – brands like Christies, Phillips, Sothebys, and others are accepting cryptocurrencies for various auctions
- Auto manufacturing – In February 2021, Tesla announced they had bought $1.5 billion worth of bitcoin and also said it will be accepting Bitcoin as payment for its products
- Banking – Megabanks JP Morgan, Morgan Stanley and Goldman Sachs all introduced cryptocurrency-related trading services in 2021. Dozens of other banks have too!
- Online payments – PayPal, the largest online global payment service has historically bought cryptocurrency and enables crypto payments to be made to 30 million+ merchants through the PayPal application. In addition, cryptocurrency can be bought through PayPal and held in a wallet
- Travel – Cheapair, Destinia and Travala amongst dozens of other travel sector companies are accepting cryptocurrencies as a means of payment for flights, accommodation and package holidays
What about governments and countries acceptance of cryptocurrencies?
Central banks and governments are largely “laggards” where it comes to the acceptance of cryptocurrencies. Of course, it is hard for them, as governments are the regulators, and they cannot regulate cryptocurrencies! Central banks and governments (such as the UK government) have been announcing research projects into central bank digital currencies, which will be a form of cryptocurrency.
In many countries, citizens are demanding cryptocurrency as a cost-effective method of sending money overseas. At the time of writing (November 2021), six countries had launched their own form of digital currency – Antigua and Barbuda, Bahamas, Grenada, Nigeria (the world’s second largest crypto market), Saint Kitts and Nevis, and Saint Lucia.
One country though has firmly accepted cryptocurrencies into their everyday economy is El Salvador – From September 2021, Bitcoin became a legal currency in El Salvador, becoming the first country to accept a cryptocurrency as legal tender.
What do the analysis think?
Listed below are some quotes from industry insiders about the exciting future for cryptocurrencies:
- “We’ve now hit a critical mass of institutional engagement [in crypto]. Everyone from the major banks to PayPal and Square is getting more involved, which is a loud and clear signal that crypto is now an official asset class.” – Michael Novogratz, Co-founder and CEO, Galaxy Digital Holdings – Source: Goldman Sachs
- “How could you not love crypto? […] Crypto is just a great system. It is frictionless. It is decentralized. And young people want their own financial system. So, it is here to stay.” – Orlando Bravo, Co-Founder and Managing Partner of private equity firm, Thoma Bravo – Source: Coin Telegraph
Paying with cryptocurrency is becoming increasingly common, such as in this pay by Bitcoin option
Should you buy, sell, mine or invest (hold)?
As we have discussed above, we believe that cryptocurrency has an exciting future, hopefully, you agree with us! Here are our thoughts on buying, selling, mining, and holding:
- Buy – buying of Bitcoin and Ethereum are often unaffordable. Smaller cryptocurrencies are often much lower-priced (but often with a reason). Not all cryptocurrencies are the same and we would advise only buying with caution and after significant research
- Sell – only sell if you want to convert to cash ($, £, etc.) Whether you need to sell is down to your own financial circumstances
- Mine – naturally, we think everybody should be crypto mining. The days of mining Bitcoin for small-scale mining are gone, but cryptocurrencies such as Ethereum (ETH) and many others can be competitively mined. So, get mining is our advice!
- Hold – often called HODLing (Hold On for Dear Life) in crypto circles, holding takes nerve. Crypto markets tend to fluctuate significantly, historic analysis suggests long-term holding is the best strategy (although history does not always repeat itself)
Don’t delay, invest in crypto today!
So if you are wondering why crypto, or contemplating why you should invest in cryptocurrencies like Bitcoin, we hope you have more than enough compelling reasons. If you would like to take part in the crypto revolution and both participate in the mining of crypto and benefit from the incredible growth and returns available by investing, contact us today.
Image Credits: Jaydeep, Gerd Altmann and Lars Plougmann
Last modified on: November 23, 2024
Contact us to order your crypto mining rig today
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Opace Ltd t/a Crypto Mining Solutions, Park House, Bristol Rd South, Rubery, Birmingham, West Midlands, B45 9AH. UK
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0845 017 7661
Comment:
Id rather invest in a magical unicorn than these cryptos 🦄🌈
Then I’d say to definitely stay away but for those that understand what crypto is all about, there’s a definite case for investing in cryptocurrencies as long as you do your research and understand the risks and potential.
Hey guys, I know crypto is hot right now, but isnt it just another bubble waiting to burst? 🤔
Hi Hayse, crypto is likely to get a lot hotter as we go into 2024. Check out https://www.crypto-mining.co.uk/faqs/is-crypto-a-bubble/