Since the conception of cryptocurrency, stories of both success and loss have come to light. Though some people are still wary of adopting, many others have found great appeal in cryptocurrency as a better means for transaction.
As a starting point, one can take early investor Kingsley Advani for example. He took the risk of putting his savings in cryptocurrency because he found huge potential in it since its emergence. From Advani’s small start of $34,000, he was able to build it into a low seven figures within six months. Now he travels the world as a startup advisor. It’s a good illustration of what playing your cards right looks like.
Apart from different people’s experiences shared around, there are also numerous data-backed reasons for anyone to consider trying crypto this year. Here are some of the best ones:
1. Bitcoin usage is unrestricted in 113 countries.
While cryptocurrency isn’t regulated by any central bank or related to any government, most countries don’t limit the use of Bitcoin. There are, in fact, there are several countries with crypto ATMs and businesses that accept Bitcoin as a mode of payment, thus enabling the use of cryptocurrency for a variety of transactions. Its less expensive and near instantaneous qualities make it a highly convenient and efficient alternative.
2. In 2018, cryptocurrency users rose by 94%.
From 18 million users in late 2017, the cryptocurrency ecosystem ballooned to 35 million the following year, according to data gathered by the Cambridge Centre for Alternative Finance. These numbers represent individual entities instead of business clients, counting regular consumers to hobbyists and investors. This only means even more people are beginning to recognize cryptocurrency as a viable alternate mode of payment and investment opportunity.
3. In the same year, the number of accounts at cryptocurrency exchanges doubled from 80 million to 150 million.
This implies that there is a significant number of people converting crypto to fiat money so they can be able to make use of it locally.
Along with the steady growth of these new users and verified accounts is a burgeoning demand for more ways to utilize the digital currency, thus signaling the development of more cryptocurrency products and services. This is a good sign for the crypto market as the increase in user adoption, as well as goods and services, is bound to make cryptocurrency a likelier alternative for transactions.
4. Bitcoin’s volatility holds bigger potential against inflation rate of countries like Venezuela.
With hyperinflation as a relentless battle for the average person in Venezuela, Bitcoin has presented itself as an attractive alternative to get by. Many have taken to it as a solution, evident in the 344.6% rise in bitcoins traded for bolívars (Venezuela’s main currency) early in 2018. Though Bitcoin has had its clashes with the government, its popularity among locals eventually paved the way for another cryptocurrency to gain just as much traction in the country: Dash.
“We’ve found that regions of high inflation rates and industries in which cash handling or credit card chargeback rates are high have been most excited to adopt the technology. For us, we focus on those segments in which cryptocurrency can offer the most benefit, and that’s one of the reasons growth in acceptance is so high,” explains Ryan Taylor, Dash Core CEO.
In this situation, both BTC and Dash currencies serve as incredible means for both businesses and even more so individuals to survive in struggling economies.
5. There’s a significant rise of cryptocurrency in developing markets.
When faced with challenging situations, crypto becomes a solution to combat the financial limitations imposed locally. In South Africa for example, “the number of new users trading bitcoin through eToro rose by 671% from January to the end of November last year over the same period in 2016, more than the 574% overall growth,” states eToro analyst, Mati Greenspan.
In the Philippines, Noah Coin aims to solve common remittance issues by providing overseas Filipino workers (OFWs) with a faster, more affordable way to send money from abroad. Instead of using banks or traditional remittance centers, OFWs can cut remittance costs by using Noah Wallet to send their hard-earned money to their families back home.
6. On the forefront, there has also been a steady increase in payment gateways.
Gateways like Bitpay, Coinbase, and CoinGate enable more cryptocurrency transactions, which in turn empower individuals to use crypto much easily. Within the next couple of years it’s expected that crypto payment processors and fiat payment processors will increase by 50%.
At the end of the day, cryptocurrency has quite a lot going for it. From a widely accessible platform available to hundreds of countries and a continuously growing popularity across the world, it addresses a number of needs for the normal person—especially those in troubled economies. While cryptocurrency is highly volatile, it still provides a strong payment alternative to local currencies faced with hyperinflation. The sheer volume of early adopters have also made it possible for even more payment gateways to come to light.
That said, these points are just scratching the surface of what cryptocurrency is capable of, and how much more it can evolve in the future. If you want to learn more about cryptocurrency, here are some of our best resources: