Cryptocurrency turned out to be a game-changer in the finance world, and it's amazing to see how far the world has come with crypto in the last decade. I remember how we were told it was a scam back then, and many people didn't want to be part of it, while a few people seized the opportunity to be early adopters, paving the way for the industry's remarkable growth.
In less than two decades, we have seen cryptocurrency become a strong competitor against the traditional banking system despite the challenges and regulatory hurdles it has experienced in the past. Fortunately for the human race, crypto has made a significant difference in revolutionizing the finance world. Although it poses some risk, its impact has extended beyond the finance world, creating opportunities for millions of people across the globe.
In the past few years, we have seen debates about cryptocurrency completely wiping out the traditional banking system, and I admire a lot of people who believe in the new world they foresee. A world where financial transactions are faster, cheaper, and more secure. A world where every individual has complete control over their financial lives, free from the government's and institutions oversight, but will that ever be possible?
As much as we think the traditional banking system isn't helping us, we can't dispute the fact that it has helped us this far. It's a system the world is used to, and we can't just trash it because cryptocurrency has more to offer us. I know the world running on cryptocurrency only will be a huge milestone in the cryptoverse, but there are so many things that wouldn't make this dream a reality in some parts of the world, most especially in the third world countries.
Being someone who visits the market very well, there is one challenge I encounter from time to time, and it has to do with payment. A lot of market men and women don't want transfers; they prefer cash because they have trust issues with anything that has to do with online transactions.
There are those who don't even know how to use the bank apps properly, so to prevent issues, they always insist on cash. I keep wondering how we convince these people to accept cryptocurrency as a means of payment when they are struggling with the regular fiat online transfer.
A larger percentage of people across the world still don't understand what cryptocurrency means in this age and time, so it would take lots of time and work to convince people, which would be difficult.
Aside from people lacking the knowledge, cryptocurrency requires the use of smart devices and the internet, which is another struggle because many market men and women don't even have smart devices; they are stuck with their burner phones and won't trade them for anything. Plus, what do we say about the regions where they don't have access to good Internet service? Do people have to wait for good network signal before they can access their money or make any form of transaction?
The volatility of the crypto market is another thing we must put into consideration. We have seen millions of dollars become thousands of dollars in the blink of an eye, and it's not a good thing for many investors who aren't there for the long term. How do people cope with seeing their wealth in an unstable movement?
Honestly, it would be a tough one to convince people despite the volatility of the crypto market, and that's a big setback. If you look deeper, the market volatility will extend beyond just individual setbacks because it would always affect the world economy at every slight downtrend in the cryptoverse.
Lastly, cryptocurrency becoming the only currency will birth a new age of crime since the government doesn't have the power to regulate or control what people do with their crypto accounts.
Even with the law binding us in the traditional banking system, we see fraud happening here and there. With cryptocurrency, tracking financial crime will be challenging, and cases like money laundering will flourish.
All these things and more will pose a threat to cryptocurrency becoming the world's only currency, but they don't change the fact that cryptocurrency will make life a lot easier with making transactions. If all of these can be worked on, it would boost the chances of crypto becoming better, but wouldn't that make it more decentralized?
Instead of the world running only on cryptocurrency, it's best we embrace a hybrid system where cryptocurrency and fiat can flourish together.
