The Acceptance Level of Cryptocurrencies – Will They Become Mainstream?

bitcoinThe rise of Bitcoin from unheard of a digital coin to global sensation in the late 2010s helped spark a mass craze in which numerous other cryptocurrencies sprouted up out of nowhere. The original cryptocurrency which was supposedly created by Satoshi Nakamoto peaked around the turn of 2018, however, and mainstream reporting on these digital coins has significantly reduced since then. The internet currencies could be on the rise again now, though, with a lot of hype surrounding Facebook’s Libra. The new token is set to be released in 2020.

Libra Set to Launch in 2020

It was only a matter of time before the world’s most dominant social media site got in on the cryptocurrency act. Mark Zuckerberg is a well-known futurist who believes that there will be a move towards digital currencies in the years ahead and wants his company to be the one to win the battle to become the most-used method.

Zuckerberg’s plan is to release Libra at some point in 2020. The coin will differ from decentralised options like Bitcoin in that it will be backed by a basket of currencies and US Treasury securities. Facebook believes that this will help keep it stable and avoid the volatility which has become synonymous with other cryptocurrencies.

The main point of interest with Libra is the fact that it will help raise global awareness of cryptocurrencies. Prior to the Bitcoin boom in 2018, only a handful of people knew anything about this alternative form of payment. Its surge in popularity helped knowledge to spread, but it is still far from being mainstream. Facebook has been hugely influential with other technology in the past, though. Most recently, it has helped live streaming become a global sensation. There is a lot of trust in Facebook and things associated with it, so it could easily help with the general acceptance of cryptocurrencies when Libra launches.

It also seems like Libra will influence a number of other countries to release their own forms of digital currency. China’s digital yuan, for instance, is said to be nearing launch.

Crypto Trading is Increasingly Popular

While cryptocurrencies may still be in the background in mainstream society, they have become highly prevalent in the world of trading. Anyone involved with this industry is well aware of the various different tokens on the market. For instance, by making use of online resources such as this crypto index, it can be clearly seen that the largest cryptocurrencies in the world in terms of market capitalisation include Bitcoin, Ethereum, and Ripple, allowing traders to view the most successful altcoins that have risen in the shadow of Bitcoin.

There are numerous factors in 2020 which could see an even bigger increase in the levels of cryptocurrency trading. There has already been a spike in Bitcoin value since the emergence of the coronavirus in China. As the stock market has been detrimentally affected by this outbreak, many investors have turned to safe-haven assets as a way to store their wealth more securely.

Trading in cryptocurrencies also tends to increase when there is a bullish market and new tokens come about. During Bitcoin’s most successful year in 2018, a vast number of smaller cryptocurrencies were created in an effort to get on the bandwagon. Traders who spotted these early were able to buy low, make a profit from the rises, and then trade the coins back to Bitcoin before the price plummeted again. It could be said that for investors, there is wide acceptance of Bitcoin in 2020.

How Widespread is Crypto Usage?

When it comes to acceptance of cryptocurrencies in everyday life, it seems like we are still quite a way off from this form of payment replacing traditional methods like banks. That being said, there are some industries in which Bitcoin and others are becoming more prevalent.

Companies that exist solely online have found that offering Bitcoin payments can serve to attract people from countries all over the world. The online gambling industry, for example, has put cryptocurrencies to good use. They are usually offered as one of many forms of payment, and appeal to players based in different countries to where they are playing who don’t want to deal with fluctuating exchange rates.

Cryptocurrencies are beginning to be accepted by governments, who realise that they may need to create their own offerings to compete with the decentralised options. They are also highly prevalent in the world of trading. However, when it comes to mainstream usage, there is a long way to go for worldwide acceptance of cryptocurrencies as a form of payment.