In the world of digital business, and by definition in the world in general, a new and fearsome tripartite divide has been added: society, economy, and digitization.
In recent years, in general, cryptocurrencies, NFTs, and blockchain technology have become famous until they reach all parts of the world and the ears of all kinds of users, regardless of their knowledge.
So volatile and so popular
The growing popularity of cryptocurrencies and passive cryptocurrency income is reaching a point that could make governments and central banks uncomfortable. The voices calling for regulation of this market grow among politicians, authorities, central bankers, and economists
This regulation is intended to protect investors who trade cryptocurrencies, but above all, to preserve the monopoly on the control of the money that public authorities (governments and central banks) enjoy today, says Deutsche Bank, in new work on cryptocurrencies and your future.
The use of bitcoin, Ethereum, and other cryptocurrencies is spreading. Although for now, speculation or illegal activities remain the activities that predominantly underlie the use of cryptocurrencies.
Cryptocurrencies: the new ways of paying
More and more people or companies are looking to crypto and its networks for new ways of paying, financing, or even making contracts (the Ethereum network is famous for its usefulness for intelligent contracts)
According to economists at Deutsche Bank, the last straw has been the acceptance of bitcoin as legal tender in El Salvador.
According to the Digital Future Society (October 2021), New technologies should empower citizens instead of widening the digital divide. What new forms of collaboration are needed to bridge the digital divide? How can governments better protect workers in the new labor paradigm?
The Bank of England has warned that the use of cryptocurrencies in the industry can generate risks that become a danger to the economic structure over time.
It is believed that the point of most significant concern is when digital currencies and their entire environment are integrated with the monetary system when a considerable value alteration might disturb other marketplaces and touch traditional economic market companies.
It takes time to design standards and regulations. The risks in handling crypto assets will increase as the cryptocurrency industry becomes more widely adopted.
Right now, only 0.1% of UK household wealth is in crypto. Similarly, it is estimated that only 2.3 million people in the United Kingdom have investments related to cryptocurrencies, with an average value of USD 396.94 per person, which represents a meager rate.
At the same time, it is essential to clarify that we have to EDUCATE and PREPARE to move forward regarding this new market experience so that when this becomes a much larger mechanism, we have the regulatory framework to contain the risks.
Noteworthy is the comment made by Deutsche Bank: the growth of crypto could lead to its demise. This is because cryptocurrencies increasingly threaten monetary and financial stability, and central banks and governments are unlikely to give up their economic monopolies.
On the future and the challenges, Bitcoin has grown faster than the internet has. The number of users worldwide is undeniable; the adoption of this new digital era is indisputable.
An excellent 2021, but expect a better 2022
Blockchain and crypto assets made great strides in 2021 in virtually every way. 2021 was not a surprising start for the global crypto asset space. Nonetheless, digital assets managed to make a mark.
All the tools that have emerged from this digital economy and the platforms that drive them are nothing more than the future in the present, and we must all prepare and acquire the necessary knowledge to adapt to the terms and the cryptographic environment.
Technological advances must be analyzed before getting involved in them, “NOT EVERYTHING THAT SHINES IS GOLD,” each one of the elements that make up this emerging digital market must be investigated and observed and thus avoid the risks and threats that this also offers
Conclusion
The bitcoin environment has caused a stir in the last year due to the bullish and bearish variations that characterized it.
It is essential to identify the elements and characteristics that make bitcoin a desirable digital currency, many thinking that it is a fraud or a threat do not dare to invest, which they end up regretting due to the valuation they have after a certain period.
