- Why people are so skeptical about digital currencies?
- Crypto is no longer in the early adoption stage.
- El Salvador, the first country to recognize Bitcoin as legal tender, now has 2,000 BTC holdings.
The crypto market began in the year 2009 with the launch of Bitcoin(BTC) and has since seen a meteoric rise in popularity. In the last decade, we have witnessed the birth of more than 5,000 different digital assets with a total market capitalization that now exceeds $2 trillion. Despite this incredible growth, there is still a great deal of skepticism surrounding cryptocurrencies.
This made CZ post on Twitter, stating that in the early phase of cryptocurrency adoption, mass consumers are highly skeptical about digital currencies.
Crypto is highly skeptical due to some reasons. Firstly, the digital market lacks physical evidence to back it up. Digital assets are decentralized and exist in the decentralized network of computers. Secondly, cryptocurrency competes with other digital assets and traditional fiat currencies. Lastly, due to the volatile nature of digital assets, consumers are worried about the future of their investments.
However, despite skepticism, there are a few key reasons why cryptocurrency is gaining popularity. The first reason is that crypto is borderless. Therefore, anyone with an internet connection can access the market and make transactions.
Crypto is past its early stage of adoption as some countries like El Salvador’s government gave Bitcoin (BTC) the official nod in June 2021, making the asset a legal tender across the country. The BTC green light in El Salvador means businesses must allow the asset as a form of payment in the region.
In the month of May, the president of El Salvador Nayib Bukele held a meeting to talk about Bitcoin and its” way forward” digital token. 44 countries attended the meeting to deliberate on the way forward for the token.
After the meeting, Bukele revealed that his country would be putting in place all the necessary infrastructure to ensure BTC becomes a Global reserve currency. The move saw El Salvador become the first country in the world to have BTC as a legal tender.
