2023-07-05 08:59:21
Cryptocurrencies are one of the most important technologies of recent years. Their contributions to the world economy are undeniable, but even so they are the center of great controversy. In this scenario, the crypto ecosystem has evolved a lot in the last year, and that is what this post is about.
What are cryptocurrencies?
First of all, we must be clear about the concept. Cryptocurrencies are virtual money that works as a means of exchange, although they do not exist physically. They differ from fiat money, in that they work thanks to a cryptography system that prevents their duplication or copying. In addition, this guarantees the ownership of their owners.
Why are they so popular?
Virtual money, also known as cryptocurrency, has become very popular thanks to two of its main characteristics. The first is decentralization. It happens that cryptocurrencies are not subject to the regulation or control of entities such as central banks. In this way, the crypto ecosystem is global in nature, without border restrictions. This has made it ideal for e-commerce. But, in addition, it is very useful in countries with economic restrictions or blockades.
On the other hand, its safety stands out. Yes, contrary to popular belief, cryptocurrencies are very safe. This is due to blockchain technology, also known as a block chain. The system works like a large public ledger where all transactions are recorded. However, the best part is that no data can be erased or altered.
What is virtual money being used for?
Thanks to its characteristics, cryptocurrencies are increasingly expanding their influence to different sectors or markets. Today, the betting with bitcoins are one of the most popular. This is because bettors appreciate the anonymity that the crypto ecosystem provides them. Remember that here you can have a user account through an email, which may well be a pseudonym. Something unthinkable with traditional banking. In addition, the security provided by the blockchain is a great plus. In addition, virtual money allows fans of online betting more options for international platforms.
Another market in which cryptocurrencies are increasingly used is that of remittances. The increase in global migration is no secret to anyone, which, being mostly illegal, leaves immigrants without banking options. So, the crypto ecosystem is the best alternative for millions of people around the world to send money to their relatives.
However, it is in online commerce where the use of virtual money grows the most. Let us remember that the Covid-19 pandemic stimulated the creation of electronic platforms. Thus, many famous brands, faced with the impossibility of selling in their physical stores, opened their virtual spaces. This also increased the need for new and more secure forms of payment. And there were the cryptocurrencies, to solve the problem.
But in the last year, cryptocurrencies have also become very popular in the traditional market. Fast food stores like KFC and Burger King already have them among their options. You can even pay for an Uber service with virtual money.
What has been the price trend of cryptocurrencies in the last year?
After a very lucrative year 2021, the crypto market experienced in 2022, and the beginning of 2023, what is known as the ‘cryptocurrency winter’. On March 13, 2021, the main benchmark in this market, bitcoin, set a record by exceeding 61 thousand USD. However, two months later it plummeted to USD 25,000. But the decline did not stop there, instead it continued to plummet to reach $15.72. As expected, panic spread and bankruptcy knocked on the door of many investors.
However, 2023 has been more auspicious for cryptocurrencies. By March, while Wall Street was losing $100 billion, bitcoin was growing 60%. In addition, its future premium has reached the maximum price in 18 months on July 4. At the time of writing this article, the price of bitcoin was USD 30.756, while its capitalization was USD 597.25 billion. But the upward behavior has also spread to most of the major virtual currencies. This is appreciated in a global market of 1.20 trillion USD.
As you have seen, in the last year the trend of the crypto market has been upwards. However, the levels are still far from what were their all-time highs. But even so, cryptocurrencies are still a good option as a payment method.
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