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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

This is a paid advertorial.

© 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.

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