Why is the adoption of cryptocurrencies growing so fast?

adoption of cryptocurrencies growing

Cryptocurrency adoption has gained momentum in leaps and bounds despite growing calls for cautious approach to the decentralized asset class.  Crypto news, for one, has proved to be a major catalyst in capturing the interest of the masses. Cryptocurrencies, especially Bitcoin (BTC) are now being considered as a safe-haven asset against the rising inflation and market volatility. Countries all across the world are trotting gradually to adopt digital currencies. From NFTs to Web 3 and metaverse, crypto and digital assets have become the hottest trend in the tech space.

Celebrities and business leaders such as Elon Musk, and Jack Dorsey, to name a few, have publicly endorsed crypto assets, meme-coins such as Dogecoin (DOGE) and Shiba Inu (SHIB). Non-fungible tokens (NFT) have become a sensation, and decentralized applications or dApps have become a major force in the advertising world. Today, crypto news has managed to seep into everyday conversations.

Is crypto becoming the center of attraction?

Crypto news has been gaining traction for quite some time. However, the ongoing Russian invasion of Ukraine has further accelerated the digital asset discourse both online and offline.  The crypto market witnessed significant damage after Russian President Vladimir Putin declared a military operation in Ukraine. Bitcoin and the altcoin troupe spiraled down to monthly lows. The combined market cap shed a whopping $200 billion from the $1.9 trillion valuations in the last week of February. The downturn was short-lived as markets recovered, but volatility persists.

After El Salvador’s adoption of Bitcoin as legal tender, many countries have started to realize the potential of digital assets and have taken steady measures to begin the adoption process. According to crypto news media house, Blockchainjournal, Indira Kempis, a senator representing the Nuevo León state in Mexico, has already started working on a crypto bill based on El Salvador’s Bitcoin Law after her visit to Central American country.

Malaysia’s Deputy Minister of Communications Zahidi Zainul proposed in the Malaysian Parliament that the country should recognize Bitcoin as legal tender, citing the move would potentially help the younger generation who are active users of the asset, especially on non-fungible token (NFT) trading platforms.

Amidst the raging war between Russia and Ukraine, Ukrainian President Volodymyr Zelenskyy signed a bill that effectively legalized the cryptocurrency sector in the country. The decision comes as the war-stricken country received cryptocurrency donations worth tens of millions of dollars from individuals and groups across the world.

Crypto and the other Web 3 affairs

In the recent crypto news, DAOs have gained enormous popularity. DAO, which stands for decentralized autonomous organization, come together for many reasons. These organizations belong to a community of people who govern as well as decide the terms and conditions of the community. A DAO is considered decentralized if unaffiliated with any specific nation-state or central bank. In addition to protocol changes and votes on upgrades, DAO’s role has undergone significant expansion.

Today, DAOs are also formed to buy NFTs, bid on rare items, help in certain humanitarian efforts. For example, Ukraine DAO, A decentralized autonomous organization (DAO) has formed to raise money for Ukrainian soldiers. Another such organization, AssanageDAO, raised $31 million in cryptocurrencies to help free WikiLeaks founder Julian Assange who is currently in prison.

Summing it all up

According to a research by Chainalysis, crypto adoption has risen 880 percent in the last twelve months and the number continues to grow, with under developed economies ranking among the fastest-growing crypto markets as well as crypto adopters.

Crypto news has ushered in a new era and pushed the adoption of digital currencies to a stratospheric level. Without the support of the various crypto news platforms, the world wouldn’t have gathered the knowledge about how the Web 3.0 is bringing in a revolution among the masses.  Digital currencies like BTC, ETH among many others established itself as a new asset class over the past decade. Even if the people are unwilling to use it for transactions; many want to convert their cash into crypto because they believe that its deflationary nature makes it a better store of value and a hedge against inflation.

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