The global financial crisis of 2008 paved the way for
a revolutionizing idea in the form of ‘digital currencies.’ Despite warning
from mainstream economists, businesses were excited as it meant more than just
an opportunity to make millions. It offered freedom and changed the old age
perspective on markets and exchanges. The underlying technology, Blockchain,
transformed the way organizations handle payments, transfers, and critical
information. The growth of cryptocurrencies around the world promised a bright
future for its supporters. Today, after a decade of inception, cryptocurrencies
have secured their place as an alternative to a stubborn, conventional
financial system. With businesses and major financial institutions adopting the
use of digital currencies and transactions, we are at the brink of ‘economic
The launch of the first digital currency, Bitcoin (2009), was an effort to sidestep the conventional financial system. It took more than a year from January 2009 to May 2010 for the first reported purchase using Bitcoin. From buying 10000 Bitcoins for just US$30 to US$38 million, Bitcoin has seen a value rise of 87000% since then. There has been a surge in new coins ever since Bitcoin made its mark. Some of these coins like Ethereum and Litecoin became as popular as Bitcoin not only in terms of profits they generated but also due to improvised mechanisms and technology used to design them.
However, these cryptocurrencies have had a wild ride during the last decade and faced some severe criticism. Nouriel Roubini (one of the economists who predicted the 2009 financial crisis) is one of crypto’s most vocal critics. He called Bitcoin, ‘mother of all bubbles,’ and tweeted to release Bitcoin and its allies in Shitcoin Hall of Manure Shame (2018). There is a rise in government-imposed regulations on cryptocurrencies. Robert Shiller, the Nobel prize-winning economist, once remarked, “while Bitcoin was a ‘really clever idea,’ it would not become a part of the financial world.’
At the same time, other establishments like financial management businesses to non-profit organizations are making efforts to integrate crypto into their strategies. Individual and small- scale investors are examining the options and aiming to invest their assets in crypto-exchanges.
While there are plenty of options available as forms of payment for goods and services, organizations are taking baby steps and accepting cryptocurrencies. Few examples of such companies are:
Cryptocurrency started as a mode of payment for goods and services and mostly recognized by large, well-established businesses around the world. But due to its immutability, transparency and security, it has gained widespread acceptance from the non-profit community. Today, several world-renowned non-profit organizations accept crypto to varying degrees. For example,
Many organizations are dwindling between the pros and cons of using cryptocurrencies, but it is a promising figure, to begin with for a relatively new idea.
One of the most remarkable aspects of cryptocurrencies against fiat is its ‘reach.’ Cryptocurrencies are free from geographical boundaries and offer a secured, unbiased platform to users across the world. Cryptocurrencies support the need for a decentralized market and are often considered a ‘threat’ by governments that fear losing control over the system. These countries have completely banned crypto-adoption with their anti-crypto legislation and criminalized (China) its use.
Fortunately, that is not the case around the globe. Today, countries are becoming aware and welcome crypto businesses. Countries like Malta, Bermuda, and Switzerland are the best places to begin your crypto businesses. The degree of acceptability varies from country to country, with some planning to launch their indigenous currencies soon.
Labeled as the ‘Bitcoin capital of Europe’ by the Guardian in 2013, Germany plans to leverage a blockchain strategy to boost digital transformation in the economy.
While cryptocurrencies have garnered a lot of support and involvement from several spheres and even governments, some nations are still apprehensive about its implementation. These countries vary in implementing moderate to stringent laws against crypto-coins and exchanges. For example, China prohibits financial firms from holding or trading cryptocurrencies. However, China’s stance on crypto became unclear when it announced the launch of its digital currency recently. Experts believe that this is a positive sign for the crypto market globally, as China was one of the most stubborn critics of crypto exchanges.
Cryptocurrencies are gaining momentum and improvising themselves in terms of security and transparency. In the year 2017, the global cryptocurrency market was valued at US$ 574.3 million, and it will expand further due to its growing popularity. The global crypto market is projected to grow at a spectacular CAGR of 31.3 during the period 2017 to 2025. By the end of the year 2025, the cryptocurrency market worldwide is estimated to be worth US$ 6702.1 million.
Revolutionary ideas like the Virie Market are bringing a fresh perspective
to crypto-market through innovation. They support the idea of a decentralized
‘free’ market that offers the participants a platform to buy/sell what they
want, whenever they want and from wherever they are. With growing
popularity and investments, economic analysts predict a bright future for the crypto
market and currencies in the years ahead. The efficiency of blockchain
technology is attracting some of the major and renowned business houses to the
world of cryptocurrencies. Be it China’s new digital currency or Facebook’s bid
to launch a stable coin ‘Libra,’ there is a surge in cryptocurrency adoption
around the world. It would not be an exaggeration to say that the world is at
the brink of ‘economic evolution.’