2020 has definitely brought with it some major changes to legacy lifestyles- could crypto be the biggest and best?
As bitcoin scrapes new heights, it seems the entire world is looking on, holding their collective breath, or so they say. However, there seems to be much less “breath-holding” and much more buying happening. Adoption and interest seem to be incredibly firm as the coin seeming sprouts new demand daily- particularly within the confines of an otherwise stalled market.
Thanks to some crypto-specific opportunities, and some fiat only blunders, many people are looking to adopt crypto in the long term. Heading towards exchanges like Bitvavo to help them better navigate the newly enticing market. This is particularly true for new investors and for those that have long been sceptical about bitcoin’s staying power. As it seems even the most apprentice of the bunch is now satisfied with bitcoin’s newfound credentials, following strong performance and values throughout the year that sunk most others.
Bitcoin Price is Stabilizing as Fiat Crumbles
Long known for its incredibly volatile dips and peaks, the price of crypto seems to be stabilizing, as it continues to break through resistance bands and hold firmly thereafter. Beginning in July of 2020, the long-loved crypto broke through at $11,000 and held strong in the approximate area for months, only to be followed by a near-constant increase in price met with few corrections. The coin crested $23,000 on December 17, hitting its greatest value to date. Staying at superior to the $19k range for nearly a week. Which says a bit about its newfound stability, as well as an increase in interest across the board.
A commonly agreed upon factor is the current economic and political turmoil in the US. With the latest stimulus package announced for business sectors leaving the population empty-handed, and a mountain of the national debt in its wake, some believe that a heightened distrust in the major fiat is causing some to turn to crypto. Using the digital currencies as a hedge against what many believe is pending hyperinflation.
The UK has also engendered renewed vigor in crypto markets with Brexit looming directly overhead. Concerns over goods values directly related to what could be a sorely lacking trade deal with the EU have seen many backing their pounds with something better. As two of the world’s biggest currencies seemingly set themselves up to implode, bitcoin offers a safe-haven. And people are taking it.
Post-COVID is Coming
As vaccines begin to roll out both in the US and Europe, people begin to seriously consider what life post-covid might look like. As work from home paradigms may continue to hold, and many businesses have found a comfortable pocket online, and cash may be dead after all. E-commerce has boomed during our year spent in lockdown, with an immediate and obvious shift in how people choose to shop, pay, and receive they depended on goods and services. Many believe that even in a post-covid world, most of these trends will stick, putting an ever-larger emphasis on e-commerce and cashless transactions.
Should this prediction hold true, bitcoin is one of the favored cryptocurrencies of this future cashless society. As a decentralized currency, bitcoin is truly borderless and democratized. Easily accessible across a greater spectrum of earners and ages. Cryptocurrencies are also cheaper than traditional banking systems by far, with billions saved on transaction and exchange fees, making them a more supportive choice when it comes to a world run on e-commerce and digital funds.
DeFi is Booming
DeFi, or decentralized finance, has snagged the attention of almost all investors in the crypto space; retail and institutional alike. Creating a fundamental infrastructure that institutional investors need, and retail investors recognize. Allowing for a future in crypto that very closely resembles much of our present fiduciary environments. DeFi allows for smart contract execution of traditional financial practices. Such as lending and borrowing, futures, and options.
The DeFi space is growing at an accelerated rate, especially as it begins to branch outside of just the financial sector. Business contracts, supply chains, and even average citizens are beginning to see the structural world of digital finance finally start laying bricks in their own neighborhoods. Meaning that there is soon to be digital infrastructure that supports all investors and account holders- which may soon see traditional financial markets all but made obsolete.
Even major players in the global economy are rushing to create their own digital currencies. Deutsche Bank recently released a report, urging legacy financial giants to quickly begin creating their own digital tokens, backed by centralized banks of course. Hoping to not be left out completely when the digital revolution finally befalls us.