In the last few years, investors at all levels have increased their holdings in various cryptocurrencies. Some of these, including the benchmark Bitcoin, continues to thrive despite the market volatility and wild swings as investors move into and out of the market.
Crypto and Stablecoins
According to a recent article by Harvard Business Review, cryptocurrencies are definitely changing the financial world. This is not only due to the acceptance of cryptocurrencies in various countries around the globe, including the USA, but also due to the use of cryptocurrencies on an international level.
How cryptocurrencies evolve, including the development of stablecoins, is seen as a critical part of the future. Stablecoins are cryptocurrencies linked to a specific reference asset. This may be a central bank digital currency (CBDC) but they are more likely to continue to be a privately controlled decentralized financed cryptocurrencies using blockchain technology.
The Public Acceptance of Cryptocurrencies
While cryptocurrencies are more accepted today than a decade ago, they are still largely misunderstood by the general public. Perhaps the countries where this is not true are China and India, where digital currencies were quickly accepted and utilized.
According to Business Insider, approximately 106 million people around the world use cryptocurrency. This may sound like a large number, but the world’s population is now over 7.9 billion, with the largest population numbers in China and India, two of the top countries using cryptocurrencies.
How quickly cryptocurrencies will become mainstream is difficult to predict. Upcoming regulation is likely to have a positive impact and create greater comfort around using and investing in these digital assets.
