Are you an entrepreneur? If yes, then are you keeping up with the emerging trends that influence your industry? If not, then you should catch up. This is the era of cryptocurrency. It is a new and safer way of transaction. Cryptocurrency, backed by blockchain, significantly reduces the chances of fraud or scams. It is a currency of people; it’s not under the control of any government or bank. Hence, it is by the people, for the people; pretty democratic, right?
An entrepreneur must know the best ways to invest their capital. Moreover, they must know their customers’ preferences. Due to almost free, quick, and frictionless transactions enabled by cryptocurrencies, more and more consumers prefer using them.
Every other organization is introducing its own cryptocurrencies, and almost everybody is investing in them; so, here are six cryptocurrency trends that you, as an entrepreneur or even just as a reader, must know.
1. Expanding User Base
You must know by now that the crypto market is sprouting. Since it’s encrypted, people love to use it for paying for stuff they buy or for purposes of trade. In 2020, the value of global cryptocurrency was $1.49 billion, and it’s expected to grow up to $4.94 billion by the year 2030. There are several online cryptocurrency platforms where you can get all relevant statistics. You can trade, find rates and trends of every currency, and exchange your currency, for example, from btc to eth, and avail of other services on these trading platforms. In 2021, the number of worldwide crypto users was 300 million. Using cryptocurrency is easy, hence the reason for its popularity.
2. Increasing Interest of Governments
Cryptocurrency is under the control of the masses, i.e. the average person. It does not operate under an international bank and is not controlled by any government. But it can’t hide from governments; every government has its eyes on cryptocurrency. More and more governments are looking into it to ensure its security, legality, and transparency. Thus, as an entrepreneur, this is the right time for you to jump on the bandwagon and access the benefits that cryptocurrency entails. Soon, if it goes under the control of any government entity or a bank, its face will change forever.
3. Emphasis on Scalability
The problem that cryptocurrencies are facing is scalability. People use them as an alternative to fiat currency, which is scalable, while cryptocurrencies are not. This raises a lot of questions. Bitcoin, for example, did not pass the scalability test, and to this day, it has provided no solution to this concern. As an entrepreneur, you should look at every angle. Currently, many currencies claim to offer scalability like Ethereum, but the target is still not achieved. It is better to invest in promising cryptocurrencies, which might eliminate this issue. Many organizations are adopting new methods or increasing block size to reduce transaction timings without compromising secure record keeping.
4. Fresh Approach to Collecting Data
Data is a gold mine for entrepreneurs. You can improve your business by analyzing customers’ data. Data gives insight into which products people are buying, what are the wants of your customers, where you can target a new audience, etc. But crypto transactions involve encryption of data, and you won’t be able to access data easily. This might worry you at first, but it is not all bad. In this situation, you can buy consumers’ data and cut out the middleman. Instead of paying a third party to gather data for you, you can directly get it from consumers. Keep an eye on this matter as you move further into the crypto-ecosystem.
5. Cut the Hassle and Save Money
We can bet that you are familiar with all the annoyances of traditional transaction systems. As a business owner or an entrepreneur, you make a lot of transactions and face so many implicit and explicit charges. This is not only limited to international transactions. Even in the case of local transactions, there are different hidden taxes or fees. Digital currencies remove all these barriers and allow you to save money. Cryptocurrencies do not need any extra payments since profit-making organizations or government entities do not run them. All you need is your digital wallet, and you are good to go. The traditional methods also take a lot of processing time, especially in the case of foreign transactions. Crypto will save your time as it is fairly quick.
6. Look Out for Newcomers
Before you go, remember to keep an eye on the new emerging cryptocurrencies. The world of cryptocurrency does not only contain Bitcoin or Ethereum. There are several other currencies. There are currently more than 19000 cryptocurrency projects, representing the whole $1.3 trillion market for crypto. You should invest in new emerging currencies that have the most potential and might explode in value, as Bitcoin did. Some latest cryptocurrencies include Tether, Binance Coin, XRP, US Dollar Coin, Cardano, and many more. Investing in new currencies brings new opportunities and benefits.
Despite many speculations and many people’s disapproval of its authenticity, it’s evident that cryptocurrency is the biggest trend in the world of finance and technology today and will remain like so in the future. Digital currencies equip transparency, efficiency, freedom, and speed. As an entrepreneur, there are six trends in cryptocurrency that you should look out for to maximize the benefits and gains for your business.