Technology that Lifts the Veil Separating Fiat and Cryptocurrency is The Key to Ensure Mass AdoptionJanuary 19, 2019
The cryptocurrency boom seems to be over. However, there is an increase in the global interest in cryptocurrency.
Sustenance of the cryptocurrency market is about the internet of things related to the blockchain technology, the cryptocurrency exchange, and compliance with regulations, issuance of tokens and the investment process to get the feat started.
A report from Coinbase states that about 70,000 through 100,000 new accounts are opened every day in the platform. This has been possible because of the efforts of early builders of the blockchain technology. Developers and companies have strong convictions about their tokens. Independent thinkers played a significant role in bringing this technology to the forefront of people, thus helping them realize the potential of this technology.
The use cases of blockchain have created increased interest in this technology. Mining, ICO flipping and day trading were common methods of money making in the cryptocurrency world.
To enable wider adoption, the industry should come up with improved technology to store these asset types.
It is possible for investors to lose their money in the market pretty easily. Risk diversification was thought to be very important to help investors sustain their interest in investment products. However, Risk diversification does not seem to be a sustainable option as both Bitcoin and Ethereum are likely to be affected simultaneously.
Individuals used to be investing in initial coin offerings to diversify risks, in expectation for high returns. The rise in fraudulent ICOs has left users to lose interest in ICOs as a mode of money making.
No reliable strategy will provide for a return on investment from cryptocurrencies. There is no guarantee that the profits will be high. Speculation will deliver either growth or decline and the anticipation for-profits might not always be satisfied.
Stable coins were meant to minimize volatility as their values were pegged to fiat currencies and commodities traded on the exchange. However, this posed the problem of restrictions from banking services.
While it is true that you can buy a whole lot of stuff with Bitcoin, liquidity continues to be a problem. Non-availability of sufficient gateways to convert the crypto back to fiat is a major determinant. Without cash, it is not possible to ensure seamless trading. Traders and merchants who are deciding to accept cryptocurrency stop all of a sudden for myriad reasons.
Technology that will lift the veil separating fiat and cryptocurrency is what is exactly required to enable mass adoption.