Encrypted Future – Why Cryptocurrencies are the way forward

A lot has been said about the intrinsic value of cryptocurrencies. Critics of cryptocurrencies believe that the concept of digital currencies is not sustainable and long-lasting as they have no intrinsic value. In their opinion, digital currencies have a certain value because the users of those currencies think they have value. Therefore, sooner or later the fancy bubble of cryptocurrencies is likely to burst. This logic is built on the premise that one-day people would stop assigning the same value to cryptocurrencies as they do today which with the passage of time would lead to the demise of nascent currencies. But, is the same not true about Gold that apparently has intrinsic value? Gold has value because people think it has value. What would be the repercussion if one day, all of a sudden, people stop recognizing the value of gold?
The increasing number of transactions per day in cryptocurrencies indicate the growing acceptability of digital currencies. Majority of the millennials are averse to traditional banking. It is hard to find bank customers who are happy with their bank services. Delayed transactions, high transaction fees and occasional incidents of frauds have deteriorated the reputation of banks. Cryptocurrencies, backed with blockchain technology and open ledger, is a perfect solution to these problems.

“One of the oldest adages in investing is that if you’re reading about it in the paper, it’s too late”. Surprisingly, not many astute finance professionals foresaw the rise of bitcoin in 2017. If you have to name one thing 2017 belonged to, it was none other than bitcoin. The rise of bitcoin has changed the global financial landscape. While the skepticism about the valuation of bitcoin is valid to some extent, there are some undervalued cryptocurrencies which have not yet caught the eye of the general public. All of a sudden, people who had little or no idea about cryptocurrencies have started taking interest in blockchain based currencies. However, their major focus remains on bitcoin.
The rapid increase in the value of bitcoin has enticed an element of betting with it. Those who have taken the long position on bitcoin before or during 2017, have witnessed such gains on their investment that no other legal investment could offer.

The fundamental innovation had been long overdue in the global financial system. Blockchain technology has set the wheels in motion for a transition of the traditional financial system into a modern and innovative one. There would be strong resistance to maintain the status quo, but the prospects of cryptocurrencies seem consistent. Betting against digital currencies is synonymous to predicting that future generations would be lesser tech savvy. Cryptocurrencies are a reality that needs to be recognized. The sooner the reality is accepted, the better the results can be achieved. Go long!!