Crypto industry potential
Bitcoin is 14 years old, ether is 7 years old, almost everything else in the cryptosphere, from DeFi to NFT and metaverse, at most 5.
Given that the crypto industry is still very young, it is difficult to be sure where crypto assets will be in 5 or 10 years. It's like asking early Internet users in 1995 what value the World Wide Web will create for business and humanity in the future.
In general, there are still two leading networks in the field of cryptocurrencies - these are, of course, Bitcoin and Ethereum.
Bitcoin - the first cryptocurrency, digital gold, the father of crypto. BTC is in the lead because it was the first and has proven to be exceptionally reliable for over a decade. The main idea when creating bitcoin was the desire to give free access to this financial instrument to any person, regardless of his social status or place of residence.
Ethereum is the second leading cryptocurrency. In terms of a platform for creating smart contracts, this is the only network that has reached such a community scale, both in terms of the number of users and the number of developers.
If we talk about the development potential of DeFi, NFT and metaverses, then almost all significant NFT and DeFi projects, as well as projects developing the metaverse, are built either on the Ethereum blockchain or on L2 protocols based on Ethereum.
By design, Ethereum is a platform for running smart contracts ("smart" contracts) / decentralized applications. This means that, in principle, anything can be built on its basis.
For example, on the basis of the Ethereum blockchain, Polygon was created - a network of secure solutions of the second level L2 and autonomous side chains. Its goal is to increase the scalability of the Ethereum blockchain and reduce transaction costs.
It is on the basis of Polygon that the smart contract of the Grand V2 token was created. Thanks to the transition to Polygon, the cost of transactions has become lower, and they are carried out faster.
In general, if we analyze the current situation on the market, the period of a protracted bearish trend in 2022 is a rather difficult time for the entire cryptocurrency industry. We can say that this is a strength test for all, without exception, crypto projects. most likely, only those behind which stand strong teams with serious revolutionary ideas and technologies will remain. And which projects will survive and which will not, only time will tell.
Many experts believe that crypto is the future of the global financial system. Interest in virtual assets is growing not only among business representatives, but also among private investors who want to preserve and increase their accumulated funds.
The use of blockchain technologies guarantees more security, reliability and maximum convenience, unlike the usual financial institutions. Cryptocurrencies are just beginning to seriously affect fiat money, but may become an important part of financial flows in the future. Some experts even predict the gradual replacement of fiat money by virtual coins.
For example, Elon Musk, founder and CEO of Tesla and SpaceX, believes that cryptocurrencies will make the future better and increase the efficiency of the monetary system.
Jack Dorsey, founder and CEO of Twitter and Square, hopes that cryptocurrency will create world peace or at least significantly contribute to it.
Kathy Wood, CEO of Ark Invest, believes that emerging markets are suffering from huge inflation, and it is cryptocurrency that can protect them from this.
Tim Draper, a well-known venture capitalist from the Forbes list of billionaires, expressed the opinion that the current market downturn will not negatively affect the long-term prospects of cryptocurrencies. Speaking at the Singapore summit of venture investors, he noted that the current situation in the crypto market reminds him of the period of the birth of Internet technologies, which subsequently took over the world. Draper believes that cryptocurrencies will become widespread, along with blockchain technologies in general.
In any case, cryptocurrencies are still ahead.
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How do you see the future of the crypto industry?
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01 August 2022
01 August 2022
01 August 2022