Since 2009, and the introduction of Bitcoin to the public, many people have become interested in the concept of cryptocurrencies. Sure, we can see that this interest wasn’t as high back in the day as it is now. But it is something that we would describe as a natural order of things. With the increased value of BTC, many more people wanted to participate in this market.
During the last decade, there was a lot of skepticism towards this concept. However, the situation has improved significantly over the years and we can see that they are more popular now than they have ever been in the past. One of the easiest ways we can spot this change is the massive adoption, mainly by the business.
However, the game-changer was the adoption of BTC as a legal method of payment in El Salvador. With all this information in front of you, chances are that you, our reader, will become interested in participating in this market. However, there are some things you need to be aware of before you start. If you want to take a look at some of these, be sure to pay a visit to www.ibtimes.co.uk.
Now, we would like to see a couple of things that have influenced some big changes in this concept. Without further ado, let’s take a look at them.
1. More Digital Currencies
As you probably know, Bitcoin was the first cryptocurrency. But many people don’t know that it was the only one for quite a long time. However, two or three years after the introduction of BTC, we can see that some other ones started to pop up. Without a doubt, this is an occurrence that has influenced the whole concept massively. Many developers have stepped up to create something as unique as possible.
Today, we can see that there are a couple of significant cryptos besides Bitcoin. For instance, Ethereum has established itself as an important player on the market. Not only that, many experts predict that it will become the most significant one out of all of them in the future. When it comes to some other players, we can see that Cardano has also managed to play a pretty big role in the market.
2. Improved Technology
Anyone who knows even the least important things about cryptos knows that Elon Musk has played a role in their evolution. However, his most memorable move was talking about their efficiency. For instance, his tweets had a direct impact on the 30% decline of BTC’s value in 2020 and 2021. According to him, he intended to make these cryptos much more efficient in many different ways.
However, the most important one is to make them as “green” as possible. Meaning, he had an idea of making them waste as little energy as possible during the mining process. We can see that this intention of his has provided the market with a lot of advantages.
So, we can see that these improvements have made a vital impact and that they will continue to do the same in the future.
3. The Blockchain System
Many people have heard about cryptocurrencies. However, many don’t know what supports these. We are talking about the blockchain system. Every digital currency out there is built on its unique system. But, all of these systems derive from the blockchain system. Since the blockchain has become much more known recently, many have started learning about it and its potentials.
Meaning, it can be used for many more things than just supporting digital currencies.
Some experts even say that we can make it a crucial factor in future security systems. As you know, it is impossible to hack through the security measures imposed by this system.
Not to mention that improving the blockchain system has made modern cryptos much more efficient in many aspects. Besides that, many other features can derive from this system.
4. Wide Adoption
In the first part of the article, we’ve mentioned that the wider adoption had a big impact on how things turned out to be these days. When businesses became more open towards this method of payment, some governments have started thinking about how they can utilize this concept most efficiently. El Salvador set a precedent that will be followed by many other countries, we are sure of that.
We can see that Belarus and Uruguay have made some steps towards complete legalization. Still, they didn’t perform it fully. That doesn’t mean that these two countries will not do it in the future. These days, some voices say that a couple of US states will follow this example. Not only that, these voices say that this legalization will be done in the next couple of years.
5. Higher Number of Traders
All of the factors we’ve mentioned before have caused a major change in the market. We are talking about an increased number of traders who come from all over the world. For example, if you take a look at known traders who come from India, you will see that there are roughly 2 million of them. Naturally, knowing the exact number is not possible simply because traders are anonymous throughout the process.
However, one thing is for certain. The number of traders has skyrocketed in the last couple of years. That’s why so many traders all over the world were scared to hear that some governments have planned to introduce a regulation that wouldn’t be beneficial for traders. When you see the number of people who have talked about these regulations, you can get some idea about how many of them there are.
The evolution of cryptos is not as long as is the case with some other similar concepts. However, that doesn’t mean that it is not as effective as some others are. Here, you can take a look at a couple of key factors that have changed over the years. Since technological advancements will continue to progress, presuming that cryptos will follow these trends would be a logical thing to do in the future.