Evolving technology has had a huge impact on many aspects of our history and daily lives for centuries.
We’re transitioning from living in a Web 2.0 era, in which social media dominates screens, to Web 3.0, which will see the Internet based more on blockchain technology.
Some compare the rise of blockchain technology to the Internet’s breakthrough during the 1980s, while others argue that it’s only a passing fad. It was cryptocurrency, namely Bitcoin (BTC), and its miraculous potential for investing that has catapulted blockchain technology into the spotlight. The blockchain continues to revolve around cryptocurrency and its widespread adoption.
However, with over 19,000 altcoins in circulation, could it still only be a ‘passing fad’ if the market has become so vast and competitive? Let’s explore the real-world application that blockchain technology and cryptocurrency could have in mainstream society.
The Impact of Institutional Investors on Crypto
Blockchain technology is pretty experimental right now, and is used predominantly in niche communities, most notably in the cryptocurrency and NFT markets. However, towards the end of last year, following NFTs’ explosion, cryptocurrency surged in popularity and achieved mainstream appeal, which prompted large corporations to begin expanding into the space. These include household names like PayPal, Tesla and Block (formerly known as Square).
As a result, an increasing number of businesses are beginning to accept cryptocurrencies as a legitimate form of payment. These investments are assisting in laying the groundwork for how the financial world will look in the future.
The value of many cryptocurrencies have decreased significantly this year as a result of major investments and a variety of other factors. Many experts believe this is just the beginning. Retail investors have remained optimistic and bought assets during every significant downturn.
Paying employees in cryptocurrency?
People’s growing interest in cryptocurrency is due in part to the fact that the technology that underpins it allows for more financial inclusion than traditional finance.
Employees and employers could benefit from a cryptocurrency-based payroll, in the sense that it can provide better financial management and no delays. For those who are already familiar with Bitcoin’s (BTC) benefits, it may be an appealing option for paying employees.
Employees at large companies such as SC5, IM and Fairlay have already begun to be paid in Bitcoin (BTC). Moreover, several prominent athletes have requested payment in cryptocurrency, such as Trevor Lawrence and Sean Culkin. This has paved the way for new businesses to accept Bitcoin (BTC) as a legitimate form of payment and purchase.
Cryptocurrency could fast-track economic growth
Underdeveloped countries and emerging economies, which are experiencing rapid economic growth, are more likely to adopt cryptocurrency. Nigeria is one example, with a report by KuCoin finding that 35% of the population have invested in digital currencies.
One obstacle facing greater adoption of cryptocurrency in these economies is the high gas fees demanded by networks to carry out transactions. This is linked to difficulties with interoperability across blockchains, which is a major issue surrounding the technology.
Yet recently, newer altcoins have been emerging to tackle this issue and therefore gain a competitive advantage in the market. For example, Calyx Token (CLX), a liquidity protocol which is currently in presale, has gained popularity in crypto spaces due to its goals of exchanging tokens immediately with minimal gas fees. It plans to do this by sourcing liquidity from multiple liquidity protocols (…….