The adoption of cryptocurrencies and blockchain technology determines their success. While countless use cases are being explored, the real test for crypto projects is whether or not they can generate and sustain real-world use. The emergence of blockchain has been compared to the rise of the internet. Like with most new disruptive technologies, crypto will take time to develop before it sees widespread mainstream adoption.
The biggest use of cryptocurrencies to date has been as speculative assets. The valuations of many cryptocurrencies are highly volatile, which creates an opportunity for investors to generate outsized returns. The crypto market is also uncorrelated with traditional financial markets. Dominant players in this sector include leading crypto exchanges like Binance and Coinbase. Wall Street is also adopting crypto trading with financial services giants like Fidelity, Nasdaq, TD Ameritrade, and others now offering crypto-related products.
The second most significant area of adoption for crypto has been as a form of money. Various merchants are now accepting cryptocurrencies as a means of payment for goods and services. The stand-out feature for cryptocurrencies has been in cross-border payments where they have the potential to reduce fees significantly. Cryptocurrency adoption has also been high in countries plagued by inflation, such as Venezuela, providing a better alternative to national currencies. Facebook’s planned move into crypto payments could also lead to large-scale adoption. Facebook wants to integrate the Libra cryptocurrency into its existing services such as WhatsApp and Messenger.
Other prominent industries expected to benefit from the integration and adoption of cryptocurrencies and blockchain technology include healthcare, supply chain management, voting, fundraising, gaming, digital identities, energy, and more. Here at [blokt], you can stay up to date on all the latest industry news as it happens. Our journalists report on all the major events that are driving forward the adoption of cryptocurrencies and blockchain.