Cryptocurrency has been around for over a decade now. We have seen many changes, many new coins emerging on the market, and how cryptocurrencies are used and accepted. Gone are the early days when crypto use was linked to the dark web. Even many mainstream businesses such as Microsoft and Starbucks accept Bitcoin as a payment method these days.
How Many New Ones are we Expecting?
At the last count, there were approximately 5,392 cryptocurrencies in existence. With 30 new currencies monthly (at the time of writing) on this one list, we can see no halt to new investment opportunities. It is wise to remember that many of these newcomers won’t last, while many will make huge gains. These investments should be considered as risky.
Is it still a Good Investment?
Crypto remains a popular investment choice, although how consumers invest may be changing. We are starting to see many traders now trade from one cryptocurrency to another, without converting back into traditional currencies. Swapping Bitcoin for Litecoin, or any other cryptocurrency is regular practice these days.
As we mentioned before cryptocurrency is becoming more accepted and is therefore used in an ever-increasing range of industries. The more easily consumers can convert regular funds into other currencies the more uptake we will see. It is simple to swap USD, GBP, or EUROS to cryptocurrency using a good Bitcoin market. Once they have the coins in their wallet, spending is as simple as using any other payment method. Some forward-thinking organizations even pay staff or contractors in cryptocurrencies. Payments are useful in tech or international situations due to the security and low cost of transferring funds.
Regulation & the Law
The legal status of cryptocurrencies can be confusing, unclear, and varies from place to place. Government views on cryptocurrency and its legal status can vary from being banned in some countries such as Algeria, Bolivia, Morocco, Nepal, Pakistan, and Vietnam, and not recognized in others as legal currency such as the USA, Canada, and the UK. Where cryptocurrency is not entirely legal the consequences of using it can be both positive and negative. You have less legal comeback where a disputed transaction occurs. On the positive side, funds and transactions are difficult to track meaning keeping activity secret from the tax authorities is easier.
Banking is an area where cryptocurrency is starting to appear more. There do not seem to be any mainstream banks offering accounts that can hold a balance in cryptocurrency. But small steps towards acceptance are beginning to appear; a few banks are allowing transactions that involve cryptocurrency to happen. Allowing any involvement with cryptocurrency is a small win. Recently some banks have been reluctant to allow any involvement. Capital One is a prime example, blocking any transaction purchasing cryptocurrency. Some banks are now allowing crypto transactions to customers who use their merchant services to process credit and debit cards. As time goes on, we expect to see a rise in these services.
This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.