Unless you have been hiding under a rock these past few years, you will be aware of the cryptocurrency platforms. Though not yet in general circulation, this is just one of the predictions for the near future thanks to how things are evolving and the way people are embracing these digital assets. If you have recently found an interest in all things crypto and want to know which way the wind will blow next, this guide has five crypto trends worth watching out for this holiday season and into the new year.
Rising Conversion Rates
Crypto prices are finally leveling out! Though this is not always the case, current trends like the ones shown here on okx represent that dominant currencies like Ether are finally coming out of the funk a little and rising upwards generally. Every day is different, and all of these are subject to fluctuations. However, this seeming stabilization means that they may indeed continue to rise on up in a positive direction. Crypto value depends on various factors, mainly supply and demand. How many people want to buy vs. how much crypto is available will be the biggest thing to navigate in this respect. Though new currencies pop up frequently, and there are thousands already established, not all of these are for common users. Some may be specific to the creator platform and others have restricted access too.
Therefore, viable currencies that are actually saleable, tradable, and storable in any tangible sense are fairly low (but still moderate comparatively). What this means for investors, traders, and owners are that their currency value will go up too and, therefore, make them an increasingly viable asset. Now, this could change at any second of any trading day. That is just the nature of the platform. But, the more popular, credible, and established cryptocurrency becomes, the more stable it will become as well. Always look at the conversion rates before investing any fiat currency into crypto because this will show you how your money will move and what the potential returns could be if you chose to go down that route.
Legal Tender Links
Some countries are beginning to recognize certain cryptocurrency lines as legal tender. For example, El Salvador and the Central African Republic are two prime entries for paving the way to modernization and adaptability. They have both at different times, El Salvador most recently, legalized bitcoin and similar currencies as completely legal tender to be used in general circulation and beyond. This could be a real trend that other countries soon jump on board with, only further cementing the validity of all that the blockchain has to offer.
Non-fungible tokens are digital representations of media or art. They are things like game skins, media files, and more. While they may not represent anything physical, they are still viable assets and do imply ownership of a thing regardless of its status as virtual or non-virtual. They are bought, collected, and traded on the same platforms for a variety of contexts. No one could have predicted the growth that NFTs would experience, but they continue to rise steadily as a viable asset for millions of users. Potentially owing to the rise in online gaming, and how popular these platforms are overall, NFTs are one to watch in future months.
Tokenization takes something that has value and converts it into a token to be used on an application (run through the blockchain). Why is this getting attention? Because of its versatile function and attractive qualities! Just like with fiat currencies and general commerce, e.g. stores using coupons to represent value, cryptocurrencies are beginning to do the same thing. This is gaining a lot of attention and people are attracted to the idea of being able to do so. It makes transactions, ownership, and authentication more straightforward and eliminates any discrepancies that may have been raised too. This is something that will indeed continue to increase in validity over the coming months, possibly even be embraced across the whole of the cryptocurrency options out there.
When putting cryptocurrency into the wider context of currency and general usage, there are bound to be some stricter regulations coming its way. Currently, there are limited restrictions in place. Governmental bodies are moving to change this with new practices and policies that encompass and consider everything crypto has to offer the general user. Though the blockchain allows for a highly secure environment, there are always loopholes and people willing to push it to the edge (or beyond) of what is legal. It is hard to regulate something that is primarily decentralized, but for bitcoin and the like to find success and become truly viable, regulation is just a box that needs ticking.
Why Is There Such Aversion To Cryptocurrency?
The answer to this question is fairly straightforward. The aversion is born from how much risk is perceived through the channel. As cryptocurrencies currently stand, this risk is highly volatile. There are often sharp changes in value, structure, currency formats, and trading availabilities. Therefore, the market is deemed as turbulent and high-risk. This drives the reluctance to formalize and recognize crypto as a general-use tender across the world. It also means that users who buy, own, or trade bitcoin or similar are putting their assets at significant risk.
However, the trade-off to these risks is that there is a tangible, lucrative path here that millions of users have already found an advantage in. Yes, prices move and conversion standards are not always reliable, but where there is profit to be made, it is profitable indeed.
There is potential in the near future for more and more countries to accept cryptocurrencies as a normal tender that circulates freely. However, this would require a lot more regulation and interference, which ultimately goes against the original intention. The good points of cryptocurrencies such as transparency, security, and adaptability make them something worth watching and definitely add to the potential prospects that future days have to bring.