Are cryptocurrencies and their decentralized nature still their main argument to attract more banked and unbanked investors?
But does it seem to be, that the biggest attraction in recent years is towards the use of cryptocurrencies?
In a few words, investing in projects related to the cryptocurrency market, today we can have a lot of information related to this market, and that, years ago we did not have so much information, logically, this is due to the high interest of people in the world who want to experiment in the market of digital cryptocurrencies, especially in the Bitcoin.
That is why, in my opinion, the entire world financial system is focused on this huge mass of unbanked people, and a large part of this mass of people have been attracted by the interesting and useful qualities of the crypto market, this has long since set off the alarms of the entire system of traditional banks, which are not going through a good time due to the fall of major banking institutions worldwide.
The huge boom of cryptocurrencies has led traditional banking institutions to try to implement any kind of strategy in order to neutralize the adoption of cryptocurrencies worldwide, however, they have failed to achieve this goal.
In relation to the governmental banking entities as central banks of the countries, they seek to cope with the use and adoption of cryptocurrencies, for this they have sought to implement digital currencies, these central bank digital currencies (CBDC), in addition to cope with the clear adoption of cryptocurrencies, also seek to curb dependence on cash.
The future of humanity is very uncertain, however, what is certain is that the use of digital currencies is very useful in hard times like the one experienced with the COVID, of course, before this pandemic and the use of cryptocurrencies was already felt in many parts of the planet, that is why, at present, many of us wonder if the CBDC can overcome the adoption of cryptocurrencies in the world?
Both proposals represent antagonistic projects, where, each of them, seek to convince investors from one side or the other in their favor, I think that the original will always end up conquering the imitation, maybe, a lot should happen in the cryptocurrency market, but, so far, I think that the decentralized character offered by the cryptocurrency market represents the main argument to be able to fish or conquer more people in the world, the opposite happens with the CBDC, since the latter will be centralized by governments and their central banks.
An important negative aspect of CBDCs is that they could usurp the role of the private banking sector, and this is because if people start using this type of currency as a payment system, banking services such as the use of bank accounts would fall drastically, that is, in addition to competing with the cryptocurrency market, CBDCs, would be potentializing a confrontation with the private banking system of those countries that seek the application of this type of digital currencies.
So far, I think that cryptocurrencies have several steps of advantages over this type of digital currencies proposed by some governments of the world through their central banks, cryptocurrencies have become the financial epicenter of the most impoverished communities and whose adoption is increasing, there are countless projects where it is possible to make any type of investment to generate profits, including people of any age, beyond its use as a basic payment system.
Of course, those of us who make a living in the cryptocurrency market always highlight the long road ahead of us, and also remember the significant nature of volatility that the crypto world as a whole possesses, however, we have not yet known the full potential of cryptocurrencies and that is yet to come in the coming years, where we will see cryptocurrencies reigning, but it remains to be seen under what parameters?
Until another opportunity my dear friends.