The number of payments in Bitcoin or cryptocurrencies, in general, has never been higher. Crypto coins are gradually replacing traditional financial services, as people are slowly switching from e-wallets and intermediaries like Western Union to online crypto payments. On the one hand, this is bad news for providers who charge hefty fees for money transfers. Still, on the other hand, cryptocurrencies are giving people more options in terms of transferring funds to friends and family members or in terms of paying for a product or a service.
Having the ability to transfer money online might be easy for many of us, but this is not the case for everyone. Sending money to, or receiving money from certain parts of the world can be very challenging. Luckily, this process has become a little bit easier because of the transactional flexibility one gets from using Bitcoinor any other digital asset that can be used as an equivalent to fiat currencies.Crypto coins can be transferred instantly from one crypto wallet to another, and they can solve problems, which people have had to deal with for years.
Cryptocurrencies do not only help people avoid problems like facing losses from currency devaluations, but they also make it easy to do business with customers from all over the world. They can be used for the purchase of a knitting kit from a company in Austria, or to pay for a banner presenting the Jack and the Beanstalk slot to the players in New Zealand. These transactional capabilities can only have positive effects on the value of cryptocurrencies,and this can only be good news for crypto coin investors. Higher demand for crypto transfers will acceleratethe incorporation of crypto coinsto the real economy.
The Pros and Cons with Regulating Cryptocurrencies
Fully incorporating crypto coins to the real economy will not happen in a day. There are a lot of obstacles Central Banks, and financial institutions need to overcome,to eliminate the toxicity still affecting the performance of crypto coins. Even though cryptos like Bitcoin have performed relatively well after recovering from the burst of the crypto bubble, investors are still hesitant when it comes to opening trading positions. A very recent example was when Bitcoin’s price fluctuated around the 10K mark, and investors were worried that a drop below that price could end up being catastrophic. While their concerns are understandable if one makes assumptions based on the developments that took place a couple of years ago, there is no recent evidence hinting another 80% value drop.
Regulating cryptocurrencies, or at least establishing guidelines for trading and using them, will increase investor trust, engage businesses to start accepting digital coins and reduce the risk of seeing another cryptocurrency bubble. Additionally, it will reduce the probability of seeing their price fluctuate uncontrollably. This, of course, can be both an advantage and a disadvantage. On the plus side, there will be a lower risk of seeing your investment crash and burn, but on the minus side, traders will probably never see a cryptocurrency reach record high prices overnight.
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