3 Strong Reasons Why The Cryptocurrency Market Will Blow Up

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The Cryptocurrency market is trending today like never before. Some have likened it to the internet boom of the 90s, also nothing that it is here to stay. Is the Cryptocurrency market really here to stay? or is it just a bubble that will soon burst?

Personally, I believe the cryptocurrency market will stand the test of time. A lot of projects will fail over time with only the best of the best surviving but saying there will be a market crash that will lead to an end to the market is almost impossible at this point.

Below are some of the reasons why the Cryptocurrency market will continue to grow

1. Millennials Will Continue To Invest In Crypto

A growing number of millennials see cryptocurrency as the easiest means to get rich. Many believe other forms of investments that are very profitable like real estate are expensive. It is easier for the average millennial to buy and hold cryptocurrency than to buy multiple properties for personal use or investment or to even open a bank account. Furthermore, they percieve that degrees are in over supply. They see crypto as the best and easiest way to become rich so they are joining the crypto community in droves. And as we know, the youth is the future.

2. Institutional Buyers And The Wealthy Are Buying Up Crypto

The cryptocurrency market has never had it this good with institutional buyers and the wealthy. Every month in the last 6 months we hear of new institutional buyers and the elite buying or planning to buy and hold crypto. Names like Elon Musk, Christian Armbruester, Jack Dorsey and then Institutional buyers like, Tesla, Morgan Stanley, UBS, Bank of America, JP Morgan, Goldman Sachs, Citigroup, PayPal, Blackrock and BNP Paribas come to mind.

JPMorgan once called Cryptocurrncy a scam but made a U-Turn in 2021 stating that Bitcoin will rise as high as $130,000, calling it “digital gold”, amazing. According to Alessandro Andreotti, an over-the-counter bitcoin dealer, “institutions are buying up more bitcoin each month than are being mined, and there simply isn’t enough for everyone.”

3. Regulation & adoption

The U.S. Securities and Exchange Commission got a new head this year. This is important to note because it is the very first time in the history of the SEC to have a chairman that understands the crypto market. Gary Gensler was a professor at MIT Sloan School of Management and a co-director of Fintech@CSAIL, as well as a senior adviser to the MIT Media Lab Digital Currency Initiative.

He instructed students in blockchain technology, digital currencies, financial technology, and public policy. Key words here are “blockchain technology, digital currencies and financial technology”. Does that make any sense to you?

What that tells me is that a body in charge of enforcing federal securities laws that protect investors now have a chairman that understands blockchain technology. We might have more regulations in the US but I do not see a complete ban of cryptocurrency anytime soon. This is key as happenings in the US market still have an impact globally.

Countries are beginning to adopt crypto as a means of exchange. Instead of banning crypto, futuristic nations, some of which have suffered from the negative impact of inflation in the last decades are embracing Bitcoin and many other digital currencies.

El Salvador recently passed a bill to recognize bitcoin as legal tender and is giving every citizen an airdrop of $30 worth of Bitcoin. Many other South American countries are planning to make bitcoin a legal tender too. Many attribute the recent attention on bitcoin and crypto in general to rising inflation. While some would argue that bitcoin is not a good hedge against inflation, many crypto enthusiast believe it is. This perception is contributing to growth cryptocurrency adoption especially in underdeveloped countries today.

In 2018, Nigeria according to UK-based TotalCrypto, took 7th place amonsgt the top 10 countries with the most cryptocurrency traders. A 2021 publication by statista.com puts Nigeria at 3rd place with $400 million worth of Nigerian Naira used to purchase Bitcoin alone on a single exchange in 2020. Nigeria is experiencing growth in crypto adoptation especially amongst young Nigerians, despite the government’s crackdown on the sector, banning banks from facilitating cryptocurrency transactions.

Furthermore, some African governments and brands are embracing the technology. A good example is the partnership between Ethiopia’s Minister of Education and IOHK, the startup behind the Cadano protocol for the development of a blockchain-based system to track student achievement in Ethiopian schools. Safemoon is also going into partnership with the government of the Gambia. Many more partnerships are springing up across Africa and the world at large.

Blockchain technology is already being used by many banks to facilitate money transfer across the globe and data management. Thousands of applications are being build using blockchain related frameworks. Do you still think blockchain technology or cryptocurrencies are going to disappear any time soon? We would like to hear from you.

 

 

 

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