Despite the fact that a very limited number of people know about the blockchain technology and the cryptocurrencies, and even fewer are involved with them, the way it is changing dynamics cannot simply be denied.
“The innovations and the opportunities being laid by the cryptocurrencies is because of blockchain which has already achieved milestones when it comes to transforming the digital world.”
How Blockchain is reinventing the Trading Platforms
Originally developed for Bitcoin, the blockchain technology is now ready to bring some radical developments in other fields too. It is such a digital ledger which is open to the public but is still incorruptible because it is duplicated thousands of times across different computer networks.
As reported by PwC, the risk of fraud involved in the financial services is around 45% surpassed only by retail and consumer which stands at 49%. Thus, it is not so hard to understand why the hypocrisy and dishonesty prevailing in this sector have left a bad taste in the public’s collective mouth.
The kind of transparency and protection guaranteed by cryptocurrencies and the blockchain technology is not offered by the current services. It is allowing a check on the corruption and letting the public handle the financial operations directly.
The Cryptocurrency Bubble Risks
The 10 largest cryptocurrencies take 94% of the total market share as they are worth more than $95 billion. On the other hand, the market is flooded with other 800 cryptocurrencies taking up 6% of the remaining share. A few people are investing exuberantly in tokens expecting unrealistic and irrational profits which are never going to be a reality.
Enterprises are launching their ICOs and the number of such offerings has exceeded one hundred in this year alone. Behaving like IPOs in the stock market, these ICOs are not governed by the rules placed by the SEC (Securities and Exchange Commission). Even after raising a significant amount through token offerings, these developers can leave the industry at any point as there is no regulatory body to control them.
What Does the Future Hold?
Irrespective of the risks involved with the cryptocurrencies, the pundits from different sectors firmly believe that they are indeed the promising future of payments and the entire financial system. Steps like the implementation of GST are being taken to make sure that the consumers are not double taxed as they use any of the cryptocurrencies.
Even finance companies like Finance District are adopting the modernity of the financial society and offering cryptocurrency loans. Becoming a part of the revolution, the company is set to incorporate blockchain and cryptocurrencies like Bitcoin in its system.
Codie, founder of Finance District says, “As Cryptocurrencies become more mature we’re starting to partner with traders and open up the platform of having our clients get access to loans with Bitcoin as their currency. We love evolution and embrace it 100% going forward“.
Now with over 5,000 cryptocurrencies and growing, look at these four reasons as to why cryptocurrency is the future of finance. The need for transparent, secure, and accessible financial systems is said to be mounting and becoming more obvious.