Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Technical Analyst: Gold Price Weakness Should Be Short Term - 24th May 19
Silver Price Looking Weaker than Gold - 24th May 19
Nigel Farage's Brexit Party EU Elections Seats Results Forecast - 24th May 19
Powerful Signal from Gold GDX - 24th May 19
Eye Opening Currency Charts – Why Precious Metals Are Falling - 23rd May 19
Netflix Has 175 Days Left to Pull Off a Miracle… or It’s All Over - 23rd May 19
Capitalism Works, Ravenous Capitalism Doesn’t - 23rd May 19
The Euro Is Bidding Its Time: A Reversal at Hand? - 23rd May 19
Gold Demand Rose 7% in Q1 2019. A Launching Pad Higher for Gold? - 23rd May 19
Global Economic Tensions Translate Into Oil Price Volatility - 22nd May 19
The Coming Pension Crisis Is So Big That It’s a Problem for Everyone - 22nd May 19
Crude Oil, Hot Stocks, and Currencies – Markets III - 22nd May 19
The No.1 Energy Stock for 2019 - 22nd May 19
Brexit Party and Lib-Dems Pull Further Away from Labour and Tories in Latest Opinion Polls - 22nd May 19
The Deep State vs Donald Trump - US vs Them Part 2 - 21st May 19
Deep State & Financial Powers Worry about Alternative Currencies - 21st May 19
Gold’s Exciting Boredom - 21st May 19
Trade War Fears Again, Will Stocks Resume the Downtrend? - 21st May 19
Buffett Mistake Costs Him $4.3 Billion This Year—Here’s What Every Investor Can Learn from It - 21st May 19
Dow Stock Market Trend Forecast 2019 May Update - Video - 20th May 19
A Brief History of Financial Entropy - 20th May 19
Gold, MMT, Fiat Money Inflation In France - 20th May 19
WAR - Us versus Them Narrative - 20th May 19
US - Iran War Safe-haven Reasons to Own Gold - 20th May 19
How long does Google have to reference a website? - 20th May 19
Tory Leadership Contest - Will Michael Gove Stab Boris Johnson in the Back Again? - 19th May 19
Stock Market Counter-trend Rally - 19th May 19
Will Stock Market “Sell in May, Go Away” Lead to a Correction… or a Crash? - 19th May 19
US vs. Global Stocks Sector Rotation – What Next? Part 1 - 19th May 19
BrExit Party EarthQuake Could Win it 150 MP's at Next UK General Election! - 18th May 19
Dow Stock Market Trend Forecast 2019 May Update - 18th May 19
US Economy to Die a Traditional Death… Inflation Is Going to Move Higher - 18th May 19
Trump’s Trade War Is Good for These 3 Dividend Stocks - 18th May 19
GDX Gold Mining Stocks Fundamentals Update - 17th May 19
Stock Markets Rally Hard – Is The Volatility Move Over? - 17th May 19
The Use of Technical Analysis for Forex Traders - 17th May 19
Brexit Party Set to Storm EU Parliament Elections - Seats Forecast - 17th May 19
Is the Trade War a Catalyst for Gold? - 17th May 19
This Is a Recession Indicator No One Is Talking About—and It’s Flashing Red - 17th May 19
War! Good or Bad for Stocks? - 17th May 19
How Many Seats Will Brexit Party Win - EU Parliament Elections Forecast 2019 - 16th May 19
It’s Not Technology but the Fed That Is Taking Away Jobs - 16th May 19
Learn to Protect your Forex Trading Capital - 16th May 19
Gold Ratio Charts Offer The Keys to the Bull Market - 16th May 19
Is Someone Secretly Smashing the Stock Market at Night? - 16th May 19

Market Oracle FREE Newsletter

U.S. House Prices Analysis and Trend Forecast 2019 to 2021

As cryptocurrency wallets become more popular, will cryptocurrencies replace traditional payments?

Currencies / BlockChain May 14, 2019 - 04:48 PM GMT

By: Umer_Mahmood

Currencies Across the globe, the number of people who hold cryptocurrency wallets is increasing exponentially. In fact, so far, around 36 million crypto wallets have been created, many for free using a simple download process. Of course, as increasing numbers of people look to buy BCH and other cryptocurrencies, the number of wallets is bound to rise. However, this rise has been very fast. Since early 2016 the number has gone from fewer than 6.7 million to 34.6 million, rising steadily during that time with no real peaks or troughs. Simultaneously, of course, the number of cryptocurrencies available has also increased. In fact, it’s thought that there were around 1,658 cryptocurrencies in existence in 2018, and new ones are being created all the time.

The first and best-established cryptocurrency is Bitcoin, which entered the currencies market in January 2009, just over a decade ago. Like all currencies, Bitcoin took a little while to establish itself as but in historic terms its rise has been incredibly fast. Most recently, the currency has been performing exceptionally well, enjoying a surge in value at the start of May 2019. Although some market analysts had expected a long-awaited drop in value for Bitcoin, the currency bounced back in early May to $5,000, adding around 2.5% to its value. Overall, volume has exceeded $14 billion and in some quarters,  another push on value is expected – up to £5,600.

Where Bitcoin goes, other cryptocurrencies have historically tended to follow. So, could the twin facts of Bitcoin’s rising value and the massive number of cryptocurrency wallets being bought indicate that digital currencies are in line to replace traditional payment methods?

Many people believe that this future is getting closer every day. One of the primary reasons is that cryptocurrencies give people the freedom to carry out transactions without a bank acting as an intermediary. As well as creating a sense of control, this cuts costs – there’s no middle man asking for their cut of the deal.

Absolute security is one of the key factors in using cryptocurrencies. Transactions that take place within blockchain technologies are safer and fraud is almost impossible to commit because accounts are frozen and inaccessible to anyone but the holder of the cryptocurrency wallet. Convenience is another important feature of using Bitcoin and other cryptocurrencies. While banks limited transactions according to time zones and working hours, these new currencies can be exchanged at any time of day or night, wherever you are in the world. This leads to the next benefit – speed. At present, Fiat money, or traditional currencies, take time to pass from one country to another, from one bank account to the next. By contrast cryptocurrencies move at the speed of light from A to B. Having highlighted all these advantages, in the end it may be the fact of money itself that helps this new type of money secure its place in the world of trade and finance. Spending and trading cryptocurrencies is more affordable that trading in traditional currencies. This means its appeal is seriously broadened.

Offering security and efficiency, cryptocurrencies are still at the mercy of governments around the world. Legislation must change and perceptions of the new way of doing things needs to shift too before cryptocurrencies can take their proper place in the new financial world.

By Umer Mahmood

© 2019 Copyright Umer Mahmood - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules