What is cryptocurrency?
Cryptocurrency is crypto-virtual money that allows you to make online purchases. It ensures and protects online financial transactions by using a digital online ledger with robust encryption. The rising popularity of these virtual currencies is due to what is known as “cryptocurrency trading,” in which these currencies are purchased and sold in order to make real money.
Experts predict that in the next years, the baby boomers will pass on more than $30 trillion in wealth to their children, millennials, and future generations, resulting in the biggest wealth transfer in history. Notably, millennials are already moving away from traditional banking, with Bitcoin BTC/USD expected to benefit from the “great wealth transfer” of our time. It’s been almost a decade, and the bitcoin market is growing faster than ever. Despite the fact that the cryptocurrency market worth has surpassed $2 trillion, there are still many unanswered questions about its future.
Many individuals throughout the world are interested in and adopting Cryptocurrency for a variety of reasons, including the following:
1- Future money that might exist
Many fans of digital currencies believe that, in the future, the latter, particularly Bitcoin, will become the official money, which is why they are racing to get it before its worth and price rise.
2- The benefit of Cryptocurrency decentralization
Because they are not tied to any central authority or body, such as banks, digital financial transactions in this situation do not require the use of an intermediary, which avoids transaction fees, which is something that many cryptocurrency advocates like.
3- Counterfeiting and counterfeiting difficulties and safety
As this decentralized technology for recording and transferring financial transactions is one of the most secure methods of payment and fund transfer, as the blockchain network is difficult to hack and impossible to forge. As a result, many people adopt cryptocurrencies.
Governments and digital currency
The majority of nations throughout the world oppose popular digital currencies like Bitcoin and Ethereum. El Salvador is the only country that recognizes bitcoin as an official currency, and the United States and Canada regard these currencies as legal, whereas the rest of the countries either impose restrictions on their purchase and sale, such as Vietnam and Georgia, or work on legislation to control them, such as the United Kingdom and the European Union, or outright refuse to deal with them, such as China and Bangladesh.
The majority of Arab countries fall under this last category, including Iraq, Qatar, Oman, Morocco, Algeria, and Tunisia. Egypt was not happy with simply prohibiting digital currencies; the Al-Azhar Mosque issued a fatwa outlawing them.
Lastly, let’s have a look at some companies which adopt the cryptocurrency:
Cryptographic Center Dubai
A number of companies and institutions accept a number of cryptocurrencies as a means of payment, but dealing with these currencies is still very limited, something Dubai is keen to change. As one of the steps towards this change, Dubai launched the DMCC’s Cryptographic Centre.
Pavilion Hotels & Resorts
Pavilion Hotels & Resorts Group, situated in Hong Kong, is the latest enterprise to accept bitcoin payments, and it is also the first worldwide hotel chain to do so.
Insurance company “AXA”
The big insurance broker has permitted clients in Switzerland to use bitcoin as a payment option for their bills after doing market research in 2019. Nearly a third of adults between the ages of 18 and 55 years have invested in it or are interested in doing so. Since the company’s market study in 2019, about a third of participants between the ages of 18 and 55 have already invested in cryptocurrencies or are interested in doing so, the decision to adopt them has been in the works.
Since one of the world’s leading software businesses, Microsoft’s acceptance of Bitcoin payments is significant, as it signals a level of trust in the use of cryptography. Bitcoin is accepted for a variety of services, including Xbox Live and Skype.
Elon Musk, the CEO of electric vehicle manufacturer Tesla, has a push-pull relationship with Bitcoin. The firm stated earlier this year that it will accept Bitcoin payments for the purchase of automobiles in the United States, after Elon Musk’s $1.5 billion (€1.2 billion) investment in cryptocurrencies in February. However, Tesla’s announcement that it will halt bitcoin transactions until more than half of the tokens are mined using renewable energy has gone unnoticed.