Cryptocurrencies, while a lot more popular than they were, are currently in a sort of grey area. They are popular enough so that everyone is talking about them and new ones pop up all over the place. However, there is still a lack of practical use and government approval for them. Here, we shall discuss just where cryptocurrencies are in the current era.
Real-world uses for cryptos
Unfortunately, there is still a lack of real use cases of cryptocurrencies. Most stores, digital ones, will not accept them. People can definitely not use them for any physical stores yet. A great use case, however, is to transfer it to individuals, not companies. Many people will be quite happy to transfer bitcoins, without government regulations.
Overall though, the current problem is that people do not yet know where their place will be. They are currently too volatile to use most places, so people are wary of them. The volatility attracts lots of traders, as it is a great opportunity to make profits. However, it is not so attractive to stable institutions, where their income could change in value overnight. The solution to this issue is some variety of regulations, something that is slowly taking shape.
Regulation is slowly coming in for cryptocurrencies. Many countries around the world are slowly adopting them. The Indian government, for example, seems to keep switching between allowing and disallowing cryptocurrency use currently. In places like Europe, however, even banks have seen the oncoming tidal wave of change and taken steps to incorporate these new systems.
As regulation increases, though, a large part of what made cryptocurrencies attractive may decrease. With more regulation, the anonymity that cryptocurrencies had may slowly fade. Bitcoin is even working with some governments to catch people operating with the coin in black markets. However, it is likely there will always be some cryptos available that offer more anonymity.
In the next article, we will go into more detail about how people are incorporating cryptos.