Although its origins are all in technology, cryptocurrencies are gradually expanding into other areas of real life. The “crtptocurrency” today are a currency traded on a par with the traditional currency, due to their diffusion and progressive regulation in many countries, which has given more and more security to every type of user.
It all started in 2008, when Bitcoin began to propose itself as an alternative currency to traditional currency. Soon after, another coin would be born that today forms the backbone of the blockchain system, Ethereum. The simplicity with which crto pto are bought and sold on the market, is the first major innovation in this sector.
Until recently, investments were reserved for a few people, since trading traditional shares on the stock exchange was a fairly complex procedure that required the intervention of intermediaries. Then, moreover, investing in cryptocurrencies was not as simple as it happens today, when trading, trading and buying are now the norm for many people. Today, just a PC or a smartphone and everyone can trade to improve their economic condition. It is the value that cryptocurrencies acquire with the passage of time that is the spring that drives many to enter this market. Economic freedom and financial independence are the two main objectives of the digital currency and the results obtained so far bode well for the future.
Cryptocurrency innovation in real life
If it did not have concrete implications, cryptocurrency would not be so successful: every innovation, even the most perfect, must have concrete application potential and suitable for everyone. What does it mean to use digital currency today?
Investing in cryptocurrencies today means having the ability to transfer money and therefore value. By now more and more users are accepting crto pto as a means of payment: this involves gradually moving to a completely different system of transactions than the one experienced so far.
Blockchain is characterized first of all by a direct relationship between users, without the need for intermediaries such as banks and other financial institutions. There are two net consequences: the different, less relevant role of these “third ” figures and the net savings of the related costs, to the benefit of the public.
Diversification is another concept introduced by cryptocurrencies today. Blockchain can be used in many different ways, including NFTs. For those who still have little practice with this world, NFTs are the Non-Fungible Tokens, that is, tokens that are unique in their identity and owe their value thanks to this uniqueness. The first economic sector that benefits is the creative sector: art, fashion, music, and everything that includes works of ingenuity.
The economic world is also being modified in the sense of greater security of transactions and in general of the operations that take place between users. If a trader, for example, decides to buy Ethereum, he knows that his trade remains indelibly recorded on the blockchain and that, if necessary security measures are taken, there are no risks to his investment and assets.
Smart contracts are another blockchain reality that is increasingly being applied to economic transactions. Smart contracts are agreements that do not have legal force, but to which the parties voluntarily adhere, deciding the conditions of the contract. When the parties to the transaction each fulfill their performance, the contract is executed.
A new way of earning passive income: if until recently it was possible to earn interest only from the classic deposit in the bank account, bound for a specific period of time, today it is possible to invest in cryptocurrencies and generate higher earnings thanks to specific mechanisms that take place on the blockchain, such as staking. There are different types of staking available to users, depending on how long they want to keep their assets and the type of assets they lock on the chain.
The economic future of cryptocurrency
What awaits us for the future? How many other evolutions will there be in the economy thanks to blockchain? The path seems to be that of a progressive parallelism between traditional and digital currency. The decisive step will be the adoption by governments and public administrations of the crypto. It is, however, a sector that is currently being regulated and, as with all things, it will be the quickest to reap the greatest benefits.