Cryptocurrency is seen as the future of monetary systems. The number of people that get attracted to invest in the digital currency market goes up day by day. There have also been various attempts by the government to bring the digital currency to regulation and this will grow the digital market more because people would feel that the market is safe to invest in. Although digital currencies are seen to be volatile, technology advancement is making digital currency a happy investing sector.
Different factors determine the rise as well as the indicators that can bring down the digital currency market. Some difficulties are encountered in banking transactions that use fiat currency. To transact through the bank has imposed charges that cost the businesses and made payments costly or even reduced the amount of payment that a business would receive. It is also time-consuming having to move from one place to another to access a financial institution and other times having to wait for cheques to mature. Unlike fiat currency, cryptocurrency has made it easy and less costly to make payments because no intermediaries are involved in the transactions.
Advancement in technology is the reason why cryptocurrency has come to exist. The digital currency is virtual and it runs through networks. Mobile phones are also considered to make or receive payments. Several apps have been designed to transact using cryptocurrency. Online shopping has been promoted by payments through cryptocurrency. The technology in the world today is at the level of making people look for ways to understand how it works so that they do not lag. More innovations are coming up and therefore making the world shift in the era of crypto.
Errors made in regular calculations are also a factor that is making cryptocurrency get adopted by many people. At times, people make errors in calculating the amount of money that one should earn for a certain commodity and this makes them either earn more or less they should. The digital currency operates on computer networks and such errors can never occur. In other cases, people have received duplicated cash unknowingly making them incur a loss. A consumer might receive duplicated cash and they might not know and by the time they realize then they have already been conned and at times they never recover their lost money. Being unduplicable and transparent then people have trusted for they cannot encounter fake crypto hence giving its rise.
Cryptocurrency in Africa has been accepted and although not yet regulated by the government it has not been illegalized. Most government agencies are looking into what could do to make the digital currency more acceptable and ways to eradicate the risks that are associated with the digital currency. Legalization has made the digital currency interest more people to invest in crypto markets and this gives room for more development on the usage of cryptocurrency.
Awareness about cryptocurrency has also played a role in making cryptocurrency rise since when many people have information about how the digital currency works then they invest in the crypto with confidence. When people were not aware of what digital currency market, only a few invested in the crypto market but with the increased awareness of how the crypto market works then many have adopted it and found it an easy way of making transactions. The more the people get educated about crypto the more the number of people investing in cryptocurrency.
The number of node counts among people has increased and this is an indication that the use of cryptocurrency in society is high. When there exist a variety of node counts in society it indicates that the people there, hold strongly to the digital currency and the chance of making it go downwards is limited. Social media has also helped in making the digital currency always rise for information about the trending issues in crypto are always given thus making it gain more fame.
Various factors may bring the use of crypto down can include: Bans by the government may make people fear investing in crypto because they might doubt incurring losses. When the government bans the use of a certain thing people fear that it may not be in use for longer.
There are risks also that could also make investors fear investing in the digital currency markets. Online theft makes people fear having their money lost to criminals and therefore they may withdraw from the market making it grow downwards.
In conclusion, the rise or fall of crypto depends on various issues. The advancement in technology has greatly led to the rise in cryptocurrency for it has made it easy for investors to transact with ease without movement and even with the use of their mobile phones. Legalization has also allowed people to join the digital currency market and be able to transact using the internet to pay and also receive payments for their goods. To avoid errors in transactions people have adopted crypto since it is computer-based and no errors are involved in the market. Many people have also gotten plight about the digital currency market and they have joined the market because they know how it works. Being cost-friendly has also attracted people to the market for they find it an easy way to earn without incurring much cost.
Cryptocurrency is seen to grow in the future and become the main medium of exchange but this will only be possible if many more people will continue to join the market and transact in it and only if the technology and different innovations will continue coming up. The possible factors that can bring down the growth of crypto should be dealt with to curb any possibility of downward growth and promote positive growth of the crypto.
