How Cryptocurrency Is Breaking Traditions – Three Examples

The emergence of cryptocurrency has changed a lot. The new financial instrument has become a serious competitor for traditional money. We suggest that you consider these three examples that prove digital assets can break traditions.

New investment trend

Back in 2015, news that a major company had invested part of its capital in Bitcoin (BTC) would have shocked the public. However, in 2021, such news would surprise no one.

Many corporations have already invested in digital assets. For example, in February 2021, Tesla bought $1.5 billion worth of Bitcoin, the world’s most capitalized cryptocurrency. Other large corporations in the blue-chip club have also become BTC investors, including MicroStrategy, MassMutual, Altshuler Shaham, Meitu, Nexon and MercadoLibre.

Many companies say they buy Bitcoin because they want to store their money in a digital asset. The logic can be explained as follows.

• With the onset of the Covid-19 pandemic, the US began implementing a quantitative easing policy, with many other countries following suit. Consequently, large quantities of additional cash are being printed and poured into the economy, flooding the market with money. While this has had a stabilizing effect on the economy, the artificial increase in the money supply causes the currency’s value to fall.
• The supply of Bitcoin is strictly limited – about 21 million BTC will be issued in total. The limitations on the issue of cryptocurrency have a positive effect on its value. The price of Bitcoin is also supported by halvings that cut the rate at which bitcoins can be mined in half. Such features support the growth of the value of the cryptocurrency by creating a rarity of supply.

The graph below shows the speed of Bitcoin mining.

Source: Blockchain.com

Thus, for many companies, Bitcoin has become not only a tool for making money, but also a way to preserve savings during a crisis.

Method of payment – version 2.0

With its growing popularity, cryptocurrencies have now securely made the list of payment methods that can be used to pay for goods and services with large companies. Here are a couple of examples of organizations that have begun accepting payment in digital assets.

• Sotheby’s auction house – the first sale of goods for cryptocurrency on the platform was recorded in mid-May 2021. In an interview with CNBC, Sotheby’s CEO, Charles Stewart, said the popular Coinbase exchange had helped the auction house organize acceptance of payments in digital assets. Coinbase had become the first major crypto platform in the United States to go public with an IPO on April 14, 2021.
• airBaltic – the airline started accepting payment in cryptocurrency in 2014. Unlike many organizations, airBaltic did not stop selling tickets for digital assets even during the crypto winter, when prices on the crypto market suffered a prolonged drop.

Many companies have found alternative ways to enter the digital asset market. For example, in mid-May 2021, eBay allowed users to trade non-exchangeable tokens (NFT).

Digitizing traditional money

Since the advent of cryptocurrencies, the authorities of many countries have attempted to fight the spread of this new financial instrument. The fact is, some digital assets, including Bitcoin, allow you to remain anonymous, and using them for transactions can be much cheaper than traditional bank transfers. These and other advantages have helped cryptocurrencies become a major competitor for traditional money.

The most striking example of digital assets triumphing over classic fiat was a situation in hyperinflation-stricken Venezuela. Given the rapid depreciation of the national currency and the inability of the government to correct the situation, Venezuelans began buying up cryptocurrencies.

In response, the government developed its own central bank digital currency (CBDC). Unfortunately, Venezuela’s ‘Petro’ did not take root among the people due to its dubious technical characteristics and security issues. However, the popularity of traditional cryptocurrencies continues to thrive there. This is indicated by the positive dynamics for Bitcoin being purchased with the national currency.

See the below graph regarding the volume of Bitcoin purchases for the national currency of Venezuela.

Source: Coin.dance

Meanwhile, so as not to repeat Venezuela’s mistake, other countries have begun creating digital versions of their own national currencies that are more technically advanced. As of early June 2021, a world map showing CBDC development looks like this.

Source: CoinMarketCap

How to make money off cryptocurrency while it’s breaking traditions

The interest of businesses and the authorities in digital assets can easily be converted into income through the purchase of cryptocurrencies. An example of a platform where you can quickly and profitably buy interesting coins to profit from is Alfacash.

Here, you’ll find tools for acquiring digital assets in various ways. In particular, Alfacash allows you to buy cryptocurrencies with bank cards. Tools for purchasing cryptocurrencies, low commissions, high transaction speeds and responsive customer service also make this platform stand out among its competitors.

Source: Alfacash

To sum up

Despite being a new financial instrument, cryptocurrency has managed to radically change the financial world. In 2021, digital assets have penetrated various industries – from business, to public administration. In the future, the influence of cryptocurrencies on the markets will likely continue to grow. You can potentially make money off these changes using platforms like Alfacash.