Cryptocurrencies have come a long way over the past few years, evolving from just a news buzz to a fully operational and widely used payment method. More and more businesses are jumping on the bandwagon and taking advantage of the vast opportunities cryptocurrencies offer. But is their popularity overblown, or could cryptocurrencies potentially replace fiat currencies in the future?
Not many people know, but the increasing number of businesses worldwide start accepting payments in cryptocurrencies, especially Bitcoin. We’re not talking here about online companies only, but about brick and mortar stores as well.
As a result, their value is steadily growing despite the occasional downfalls. If you take a look at the stats, you will see that the top cryptocurrencies have already surpassed the $1 billion mark in their total market cap.
Why Do We Need Them?
You might be wondering what the driving force of their increasing popularity is. After all, there are already different efficient online payment systems out there, so why do we need another one.
Unlike systems such as PayPal or traditional bank transfers, for example, cryptocurrencies are lacking central processing authority. In other words, when you send funds to your friend, she receives them without a prior verification by a third party. This decentralized feature of cryptos leads to the ease of their use, speedy transactions, and low transaction fees, as there’s no middleman to cut in.
Bitcoin is the world’s first cryptocurrency which quickly paved the way for other cryptos on the market. At this moment, there are more than 2,000 of them, each with different value and purpose.
That said, if you’re considering to join the crypto world, it would be a bad idea to go with Bitcoin by default. Instead, you need to conduct a throughout research first by checking reliable sources. It might turn out that some other coins, like Ether or Ripple, for example, would be a better fit for your needs and objectives.
Love them or hate them, many experts agree that cryptocurrencies are here to stay. However, at this moment, it is not possible to tell whether they will entirely replace the existing fiat currencies in the future. Simply said, we have no conclusive reason to base our opinion on.
To find out more about the top 27 cryptocurrencies and their peculiar features, check out the infographic below.
