Until now, skeptics and anti-Bitcoiners, the majority of whom support traditional banking, saw cryptocurrencies as a 'bubble about to burst.' Cryptocurrencies, on the other hand, have managed to withstand the test of time, giving skeptics a run for their money. Indeed, they could just as easily be referred to as the fabled nine-legged cat or, better yet, the rising Phoenix.
Without a doubt, each new technology generates mixed reactions: favourable responses from those who are liberal and open-minded, and pessimistic responses from those who are adamant about their methods and feel advances are intended to disrupt the existing quo. They are, but not in the manner that the status quo is; at least, not if the status quo is filled with bottlenecks. The internet is a case in point; it altered the status quo, and cryptocurrencies and blockchain technology are poised to do the same.
Surprisingly, the popularity and widespread adoption of these two breakthroughs have been bolstered by global bans and restrictions. Fiat currencies are already under threat from the growing popularity of cryptocurrencies. Thus, rather than openly prohibiting its use, governments worldwide have been forced to regulate the crypto sector. In light of this, there are a number of reasons that have contributed to cryptocurrencies' durability. They are based on the blockchain technology.
Due to the fact that cryptocurrencies are not physical, they have a robust foundation. As such, they are immune to destruction, in contrast to physical assets. This is because they are based on the blockchain, which is a digital ledger established via the use of codes. Blockchain technology is often regarded as the most secure method of holding an asset, and some established institutions are already implementing it for information and file sharing platforms.
Cryptocurrencies Giving Birth to New Technologies
Additionally, cryptocurrency is paving the way for new technologies, particularly CBDCs. Crypto assets were crucial in conceiving the concept of a central bank digital currency for the majority of countries. Because these countries' officials have been unable to prohibit crypto assets, they have turned to an alternative that they believe will compete cryptocurrency. The control that the majority of governments lack over cryptocurrency, they may exercise over the CBDCs. Thus, cryptocurrencies are no longer solely about money, but also about innovation and technological advancements.
Actual Use Cases
They are not a bubble, as some suggest, because they exist to address real-world problems. As long as they are capable of identifying and addressing these requirements, they will span generations and continue to evolve. One significant need they are positioned to answer is centralisation, which is the precursor to a variety of other concerns in the traditional financial system, including delayed transactions, third-party intervention, invasion of privacy, and high transaction fees. As a result, cryptocurrencies are now addressing all of these challenges and making significant improvements.
In conclusion, rather than adopting a one-size-fits-all strategy to cryptocurrencies, regulators are now compromise and exploring ways to govern the field in order to protect consumers' interests. Regulators have no choice but to take a back seat when it comes to cryptocurrency. Intriguingly, skeptics are being converted due to their realisation of the wrong of their views and opinions.