Crypto revolution is the restructuring of the whole financial industry using blockchain-based financial tools. This restructuring is expected to, among other things, eliminate the need for intermediaries or mediators. The end goal is to create a world where anyone can tap into financial services from the comfort of their homes.
Crypto revolution is upon us as it moves into every part of our lives. How did we get here and what should you know about it? We investigate further…
Today, many investors are actively discussing crypto and the numerous developments it has heralded. This phenomenon is especially prominent in the financial space. Furthermore, cryptocurrencies have become a mainstay and major part of the investment strategies of millions across the world.
Many believe that we’re already in a full-blown crypto revolution that will only get bigger. However, most trends in crypto are only popular in the developed world.
As cryptocurrencies infiltrate the developing economies, there’s a potential for the industry to grow to heights hitherto unheard of.
Still, like every move, the crypto revolution isn’t the ultimate that many think it is. Yes, crypto companies are ubiquitous these days, and more of them now accept digital assets. But does that mean that you should buy in?
The Crypto Revolution: Why and how we were involved?
As many would say, the origin of the crypto industry can be traced back to 2008, when Satoshi Nakamoto—the pseudonymous founder of Bitcoin (or founders, as the case may be)—first released the whitepaper for Bitcoin.
Nakamoto envisioned Bitcoin as a decentralised form of money—anonymous, fast, and, most importantly, free from the control of any individual entity. This libertarian belief stuck with many people, especially following the fallout from the Great Depression and the loss of trust in centralised financial structures. Thus, Bitcoin was born, and by extension, the crypto revolution.
It took a lot of time for the crypto market to become mainstream. Data from CoinMarketCap shows that the entire market didn’t cross the trillion-dollar point until January 2021.
However, what happened during that time was a massive influx of building and influence expansion. Inspired by Bitcoin, several crypto projects came into the field and began using Bitcoin’s underlying technology—blockchain—for multiple purposes.
While Bitcoin focused on being an alternative to money, Ethereum demonstrated that blockchain could be applied to develop applications and scalable services.
Meanwhile, Ripple was developed to make cross-border payments more efficient. Ripple aims to replace the Society for Worldwide Interbank Financial Telecommunications (SWIFT) and become the global standard for international remittances. And so, the industry continued to grow, adding one layer of functionality after another.
Someone may ask, “Why are there so many cryptocurrencies?” Today, crypto is so much more than just investing and trading. Crypto is the sum total of protocols and tools looking to use blockchain and other technologies to improve the world.
Matvey Diadkov, of Bitmedia crypto ad network expands further on this:
“It all started with crypto being the new alternative to conventional fiat money. With the rise of Ethereum, the market quickly understood that there is more to blockchain than making simple P2P transactions. Ethereum became the new internet on which developers started to build their own solutions, and this in turn served as an example to others, who saw opportunities in building new specialised blockchains.
Today, we live in the world where at least 5 blockchains are firmly developing on proven foundations. Each houses a plethora of projects that are exclusive to these blockchains, and it is why there is so much crypto around. There is a consistent cash inflow into the industry, and most importantly there is a clear understanding of how blockchain can be utilised to improve the world we live in. Large corporations and institutions have already made their first move towards blockchain, and this trend will not burn out any time soon.”
Currently, the crypto market is as self-sustaining as any other market in the world. The crypto space might not be as liquid as other markets like forex and stocks, but its level of growth has been very impressive. In just 13 years, the crypto market has become a $1.2 trillion space—and that’s with the lingering bearish trend.
We’ve also seen the gradual entry of crypto into the traditional economy. In the past two years alone, crypto companies have raised massive amounts of capital, gone public, and signed deals with traditional companies to improve payments, investing, and more.
At the same time, many traditional public companies have made moves into crypto. Data from Bitcoin Treasuries shows that public companies hold a total of $7.9 billion in Bitcoin, while governments hold an additional $8.07 billion.
Where are we going?
Looking forward, it’s easy to be excited about the future of the crypto market. Even with the current dip, crypto has proven its longevity. Crypto’s prominence is also expected to grow with the introduction of several sub-sectors—including decentralised finance (DeFi), blockchain gaming and the metaverse, and non-fungible tokens (NFTs).
Despite becoming mainstream less than two years ago, the DeFi space—which focuses on providing crypto financial services without the need for third parties—has grown into a $56 billion market. Sales of NFTs crossed $17 billion in 2021 alone, with several collections seeing their tokens go for as high as $500,000. And, with the world focusing on the metaverse, we expect to see the space thrive as well.
Additionally, the move towards Web3 is expected to accelerate the adoption of crypto. Web3 will rely heavily on privacy and user control — two tenets that the crypto industry was founded on.
With blockchain expected to play a major role in Web3 development, it’s practical that crypto will be the medium of exchange for the future.
As a result of the current dip, many people may ask, “Is it worth investing in Bitcoin/crypto?”
The answer to this question is yes. If you examine the history of cryptocurrencies, their growth patterns, and the projected future of the internet and finance, you’ll discover that crypto is more than a viable long-term investment. Crypto is perhaps the best out there.
No escape from the Crypto Revolution – We are already here
The shift towards crypto has long been predicted. Most people view this space as just a means of earning money, and they could be right in a sense—cryptocurrencies have made many people rich, even in developing economies.
However, if you look at the broader picture, you’ll find that crypto is far more than investment and trading. It is a thriving, self-sustaining ecosystem of tools and projects that could become the global standard for their respective spaces.
When you explore areas like NFTs, DeFi, and the metaverse, you’ll discover that there won’t be a way to exclude yourself from the crypto wave. The best bet for you will be to learn how the future of crypto affects you and place yourself in the best position to benefit from it.