Why are cryptocurrencies gaining popularity in recent years?
Cryptocurrencies are back in vogue after hitting a bit of a snag over the past year. This can be attributed to a combination of multiple factors. Over the past 13 years, the market has established a track record of predictability with its characteristic market cycles.
We are seeing a growing crypto following who see crypto, and blockchain in particular, as a means of shaking up the status quo and rattling the established financial hierarchy that has taken centuries to take hold. This crowd are fiercely-loyal first-adopters and true believers in the technology as being transformative for the future.
Overall, we can look at the gradual rise in crypto’s popularity as a snowball effect with periodic retreats and cycles. Here, as is the case with everything else that deserves serious study, trends are important, and when we take the growth potential of the crypto industry as a whole, we have a solid way to measure, track and predict crypto’s growth potential.
One indispensable metric we are using in the industry is token market capitalization or TCAP. It functions as a token which tracks the value of the total crypto market capitalization via an index that incorporates thousands of digital assets. Currently, our data puts the total token capitalization at somewhere around the $1.13 Trillion mark.
In terms of projected trends, the global cryptocurrency market is expected to grow on average over 10% annually by 2030.
That is an impressive showing, not only judged by today’s classical investment standards, whether it’s stocks, indices or securities. This storage of value that crypto has become brings with it a shift in paradigm. Formerly seen as an alternative investment solely in the domain of speculators, cryptocurrencies are now being openly discussed as a viable option for a portion of any investor's portfolio.
Which markets or countries are the most developed in terms of using cryptocurrencies in daily activities, and not in terms of speculation?
Before I answer your question, I will sidetrack a bit and expand more on crypto’s rise in popularity and what that means for the average Joe and for our line of business.
See, when we launched BITmarkets, we did not particularly look at what countries had the highest crypto adoption rates before deciding to open up shop there. We simply knew that we wanted to cover as many countries as we physically and virtually could. The reason was that we see crypto and the underlying blockchain technology as the harbinger of the future of transactions.
As our mission dictates, we deliver live support to all crypto traders live support in their native tongue. So, when a trader, or a potential trader has some important question about crypto, including its practical use in transactions, he/she will get a clear answer from us. Our traders will never have to deal with a chatbot and feel detached from their assets. This is because we are convinced that even though crypto is all digital, establishing trust in the process is still best done through actual human contact.
Getting back to your original question, the Japanese are far ahead in crypto adoption. Already back in 2017, the government there has approved numerous cryptocurrency exchanges after recognizing Bitcoin as a legal tender. As a result, Japan is one of the most crypto-friendly countries in the world.
Next on the list of crypto leaders is Switzerland, which continues to set the standard for financial innovation. It boasts very high rates of cryptocurrency adoption and is home to some of the world's most advanced crypto exchanges.
Surprisingly, El Salvador has emerged as a global pioneer in adopting blockchain technology.
It became the first nation to recognize Bitcoin as a legal tender for goods and services alongside the U.S. dollar. Through this effort, the government aimed to push financial inclusion in the country, where 70% of adults do not have a bank account.
What do you most often pay for in cryptocurrencies? Is it really more convenient than traditional wire transfers or card payments?
It is indeed very convenient and effective to pay for products and services in cryptocurrencies. Personally, I mostly use stablecoins like USDT or USDC. I don’t ever pay in BTC or ETH as you don’t want to lose these holdings to your name (laughs). I find this form of payment efficient mainly due to its reliability and quickness.
Of course, if I were to do an international transaction outside of the SEPA region, I would consider its cost-effectiveness. The fees I would be saving if I went with a crypto transaction instead could very well be worth it.
Which cryptocurrencies do you use?
I am a huge fan of Ethereum and its robust network. My portfolio is also enriched by Polygon and Ripple mainly due to cross-border transaction efficiency and connection with multiple banks which use RippleNet for compliance purposes as well. AAVE is also a great project offering easy access to liquidity and borrowing funds. My metaverse side consists of the Sandbox and I am also rooting for Tezos.
Do you settle with your employer in cryptocurrency or traditional currency? If not in crypto, why not?
You always have to follow the laws and regulations of the country where you operate and where your employees reside. For now, there are not so many countries allowing cryptocurrency to be used as a legal tender. Therefore, we stick to the traditional currency, although we do settle in crypto with other crypto exchanges.