The Growth of Crypto and Why Now Institutional Adoption Is Real
● Governments as well as corporations are analyzing the cryptocurrency market in an effort to evaluate how they can adapt the transaction mechanism and exchange value.
● PayPal accepts crypto payment methods
● Uniswap (V2) skyrockets in popularity
● Crypto is slowly becoming our second internet, the internet of value.
● Bitcoin and other cryptocurrencies are a new asset class that has seen amazing returns
If we take a trip back in time, we can pinpoint the exact time-frame where the cryptocurrency craze and bitcoin began. The first line of code ever written occurred on January the 3rd, 2009. These lines of code would later on become to be known as the genesis code, and they are written by the person or group of people known as Satoshi Nakamoto, who is or are credited for the creation of Bitcoin.
The first bitcoin ever sent was sent on January 12th to Hal Finney. Keep in mind that cryptocurrency was in its infancy at this point in time.
Cryptocurrency and bitcoin as a whole drew from three communities:
● The small community or original investors
● The blockchain technology enthusiasts
● The speculators who want to make money
How Crypto Grew Throughout the Years
As we move on to 15th of august of 2010, bitcoin is hacked and a major venerability the system has is exposed. This is when a transaction of 184 billion BTC occurred. Throughout the year the inaugural bitcoin sale takes place and enables monetary value to be attached to cryptocurrency or in other words, bitcoin, for the very first time. This is when a person used 10.000 coins to buy pizzas.
Now, as we move on to 2011, we can see the rise of other cryptocurrencies, also known as altcoins. These are Litecoin, Namecoin and Swiftcoin. As we move forward to 2013, bitcoin holders do not agree on new rules when it comes to transactions, and this in turn results in a fork, where the technology goes two ways.
Now, in 2015 possibly one of the biggest competitors to bitcoin emerge, one of them being Ethereum and the other being Coinbase, that raise over $75 million in funding. Aa such, throughout the entirety of 2016 cryptocurrencies continue to become mainstream and bitcoin ATMs start rising up in the thousands area. Even transportation services such as Uber switch to bitcoin payment.
Stablecoins Taking a Lead
Stablecoins are in essence digital tokens but ones that are pegged to a fiat currency. In turn, this currency acts as a hedging mechanism against the potential decline of prices.
They are the result of long-term instability of non-centralized tokens and are the current leader in the stablecoin industry.
The emergence of cryptocurrencies is often viewed as driven by the opportunity for innovation and entrepreneurship when it comes to financial solutions. This is the case for specific innovation created on internet-based technology.
Real-World Adoption of Cryptocurrencies
PayPal recently confirmed what a lot of analysts were speculating for years. PayPal announced that people will be able to spend cryptocurrency at 26 million merchants. Keep in mind that PayPal is the world’s biggest global payment provider, or at least one of them, with around 346 million active accounts and over $222 billion in volume that was processed in Q2 of 2020.
In February 20219 the banking giant JPMorgan announced that it wanted to launch its own cryptocurrency. This was in an effort to speed up any settlements within the network itself. In October of 2020, JPM coin was released. As such, J.P. Morgan became the first global bank to design its own network that facilitates instantaneous payments through the usage of blockchain technology which in turn enables 24/7 B2B money movement.
Uniswap (V2) was also released in May and has made 2020 one of the biggest years when it came to decentralized exchange adoption. This exchange reached over $50 billion in lifetime volume.
eToro launched GoodDollar that is a social impact project with one aim, and that is the aim to deliver digital universal basic income at a scale. GoodDollar mints its tokens which are known as G$ and are based on the yields generated by investing a basket of cryptocurrency reserve assets within the DeFi protocols. Later on, these are distributed as basic daily income. More than 40.000 people from 180 countries have signed up and distributed over 14 million G$.
Efficient Frontier provides market
With all of this in mind we can safely say that cryptocurrencies are here to stay and are making an impact on this world in one way or another. Many institutions out there are taking advantage of the technology in order to better their systems and make everything work 24/7 through blockchain technology.
