CRYPTOCURRENCY FINANCIAL TRANSACTIONS USE
Major players in the finance sphere, believe that cryptocurrency is the future of money. It has basically provided a revolutionary system of payment. as many other people believe in the same
What was once a concept that was pretty difficult to grasp is fast becoming a generally accepted mode of transaction. Over 1600 cryptocurrencies have entered into circulation since 2009 when bitcoin emerged. Using cryptocurrency for financial transactions is now more and more widely spread.
In recent times, some governments have taken steps to introduce legislation that legitimizes their general use.
This goes to indicate that cryptocurrency is indeed one of the disruptive financial innovations set to rock the 21st century.
Cryptocurrency is the future of financial transactions.
The Current State of Cryptocurrency
Over the past decade, Bitcoin and other cryptocurrencies have seen massive returns, perhaps even beyond predictions by seasoned financial analysts.
After attaining nearly about $20,000 to a coin in early 2018, we saw bitcoin fall and hover around the $3,000 mark. Needless to say, the rest of the crypto market fell as well, at this moment investors like my had two choises
However, in 2019, Bitcoin began to rise again and strengthened to an excess of $10,000. And since then, the market has seen a steady but gradual increase in value. The trend for using cryptocurrency for financial transactions has steadied.
Similarly, new developments such as pending ETF approval, increased institutional interest and the surging popularity of stablecoins are all markers that point to a guaranteed increase in the popularity of Cryptocurrency.
Without batting an eyelid, it is safe to say that cryptocurrency is here to stay. In addition, blockchain, the technology that backs most cryptocurrency has seen its application spread beyond the digital currency industry and is being applied to new areas.
In spite of economic and government instabilities, cryptocurrency has continued to wax strong against all odds. And while the market has had its own share of battering, the fact remains that there is still a lot of upside left.
Cryptocurrencies were specifically intended to disrupt the entire financial system and allow for transactions to be completely seamless without middlemen or reliance on centralized financial institutions.
After all the noise cryptocurrency has made, it definitely isn’t going quiet anytime soon.
Cryptocurrency and Big Economic Players
Some of the major players in the cryptocurrency sphere are big names in the finance sphere that predicted it to be the next big thing and dived headlong into it.
One of the names that are worthy of note is Blythe Masters, a former Managing Director at J.P. Morgan Chase & Co. (NYSE: JPM).
She is the current CEO of Digital Asset Holdings (DAH). The company deals with building encryption-based processing tools that are meant to improve compliance, security, efficiency, and settlement speed of securities trading, Bitcoin specifically.
A lot of people are of the opinion that Masters provided Bitcoin with legitimacy due to the shiny reputation that she had on Wall Street, rising to Managing Director of J.P. Morgan Chase at the age of 28.
Another name that is worthy of note includes Barry Silbert, the Chief Executive Officer and founder of Digital Currency Group.
His firm, Digital Currency Group which he founded and is the current CEO, has invested in more than 100 Bitcoin-related companies and is the world’s leading firm for investing in Bitcoin-related companies.
Other names are Dan Morehead, Tyler and Cameron Winklevoss, and Michael Novogratz who invested about 30% of his net worth into cryptocurrencies.
Away from individuals, J.P. Morgan, in February 2019 said it had successfully trialed JPM Coin, a prototype new digital coin.
They said that they intended to use this prototype digital coin for transactions between corporate customers. This way international payments would be transferred in the form of cryptocurrency.
This implies that a notable bank such as J.P. Morgan has seen the future of transactions and correctly determined that it is cryptocurrency.
Several other U.S. banks are also creating digital coins for B2B cryptocurrency payments. Reports indicate that large tech companies are also opening up to the concept of using digital currencies to allow for payments among users of their services.
In essence, there are already certain major players in the market and more are set to join. Cryptocurrency has made its way in the world of financial transactions.
The Essence of High-Performance Trading Platforms
Trading platforms are essential to connect sellers to buyers and vice versa. These platforms basically guarantee that there is a buyer for your cryptocurrency and of course, helps to reduce the chances of fraud.
For several years now the DevUnit has been taking active part in the development of a cryptocurrency trading platform. Our clients, an innovative group of crypto entrepreneurs, long ago realized that a trading platform can affect transactions to a very great extent because the more difficult it is to grasp, the more the chances of users getting it wrong and making a huge mistake.
Errors are non-negotiable during cryptocurrency trading, therefore, trading platforms should be designed such that the chances of users committing an error are either completely eliminated or at least reduced by a great length.
Creating a trading platform usually requires lots of resources and tech skills and is a very long process as well. It can be likened to creating a corporation.
And for cryptocurrency trading to thrive, there has to be a trusted and comprehensive trading platform that allows for seamless transactions. These words aptly describe the trading platform that we are finalizing for one of our clients.
It is bound to bring a massive boost to smooth transactions and it boasts loads of reporting tools and features feeds from crypto stock exchanges. The interface is designed to show users what’s happening at any point in the crypto market at a single glance.
Finally, the views can be modified and customized to suit the preferences of individual users. The platform is simply excellent in terms of functionality and comprehensiveness.
These are basics that any efficient, top-notch platform should have. In addition, it is highly secure and has highly advanced trading features that any trader would appreciate.
User-friendly and quick to grasp are some of the words that also describe this platform. And with a massive boost in the number of users of cryptocurrency, traders would need to finalize their deals rapidly.
The Future of Cryptocurrency
One of the most accurate predictions of the future of cryptocurrencies that is just about etched in stone is that it would cause disruptions to the future of money. Even nowadays retailers are starting to rely more and more on cryptocurrency for financial transactions.
Given that future disruption by cryptocurrency is a certainty, regulations are bound to become tighter.
Countries like the United States, the United Kingdom, and Australia have all accepted cryptocurrencies and in the near future, there is a very high chance of other countries accepting it as well.
Also, while cryptocurrencies are over a decade old already, there are still people who know little or nothing about its existence. They mainly manage money flow by making use of traditional methods of transactions.
However, in the times to come, businesses would begin to use cryptocurrencies as an accepted mode of payment for goods and services. This would invariably eliminate the need for a middleman or third party in various processes.
In addition, it would allow for services to become cheaper and a reduction in the cost of products for the final consumer. These are a given that is bound to occur whether or not certain parties are unaware of cryptocurrencies.
Here are some of the popular predictions about the future of cryptocurrencies:
Cryptocurrencies would act as remittances for a lot of individuals and businesses
By 2030, smartphone transactions would have half the world moving towards non-cash transactions
More people would trade cryptocurrencies because awareness would greatly increase
Cryptocurrencies will replace Fiat currencies
With a gradual march towards cryptocurrencies, fiat currencies would begin to disappear. Currencies such as bitcoin and ethereum would replace the regular currencies that we know today.
The main reason for this would be because people believe that cryptocurrencies are the perfect store of value and would retain their worth even across country borders.
Furthermore, the banking and financial sectors would not be left out. Cryptocurrencies and blockchain technology actually have quite a lot to do with these sectors.
Financial analysts predict that banks would eventually accept the idea of cryptocurrencies wholesome in order to reduce their complexities. Some of the predicted actions that banks would take are:
Cryptocurrency accounts; people would start to open up cryptocurrency bank accounts.
Just like the regular debit cards we use for fiat currencies, there would be cryptocurrency debit cards too.
Cryptocurrencies purchase would be possible directly from ATM’s, in place of withdrawing money.
Cryptocurrency will be a preferred method for financial transactions
Banks would be offering out cryptocurrency loans.
An article in American Banker recognized blockchain-based cryptocurrency payment systems to have advantages such as faster transaction times and lower fees.
Eliminating third parties like payment processors from transaction processes would
make transactions a lot more rapid and would save charges that traditional institutions would typically charge.
Also, major financial players in the world are all over cryptocurrency, and this is basically a beacon signaling to the entire world that it is the next financial way of life.