Ever since the Bitcoin entered the market alongside blockchain technology back in 2009, the buzz surrounding the cryptocurrencies has been ongoing. The crypto market presented itself as an entirely new world of possibilities for both individual investors and companies alike.
The promise of a decentralized public market that’s not influenced by governments or central banks in any way, got a lot of people interested. However, the crypto market has experienced its ups and downs and it seems that it won’t be able to stabilize itself any time soon. The fact of the matter is that the crypto market has now become famous or infamous for its extreme volatility.
Even Bitcoin has managed to reach its peak glory as its price rose to $19,700 in December 22nd of 2017 only to fall to $6,200 less than two months later. This made investors quite skeptical about investing in cryptocurrencies altogether. Today, there are over a thousand different cryptocurrencies on the market and they are slowly earning back the trust of businesses. Here are a few ways cryptocurrencies are managing to achieve that.
New blockchain developments
Although Bitcoin has been struggling to remain relevant on the crypto market, for the most part, the blockchain technology has been in development resulting in new systems and new cryptocurrencies that promise value to both investors and businesses. As mentioned before, there are now well over 1000 different cryptocurrencies available on the market.
In other words, various developers are striving towards developing interesting new platforms based on blockchain and other relevant technologies that will give new light to the crypto market. As an example, Ethereum was one of the first to develop such a new system when they introduced a smart contract feature. These new systems and platforms have the potential to stabilize the crypto market and earn back the trust of businesses, thus even have the potential to reduce the volatility that currently plagues the market.
An increased interest
It’s no secret that the cryptocurrency market is experiencing an increase in interest from consumers, investors, businesses and even governments. Everyone is interested in how cryptocurrencies can benefit them and in what way.
Consumers are interested in alternative payment options, businesses are interested in capitalizing on potential opportunities while governments are interested in how they can get involved. In any event, due to the high interests from all sides, various companies that develop both new systems and new cryptocurrencies are looking to make a good first impression and earn back the trust of everyone
As an example, there are now cryptocurrencies developed by companies, such as Anchor.io, focused on preservation and stable growth in the value of investments and holdings. In other words, some companies are willing to make an effort to tackle the problem of instability and volatility of the crypto market, in order to make investments more seamless for both businesses and individual investors.
One of the major aspects that made cryptocurrencies quite interesting and sought after, in the first place, was the added efficiency to various processes. Compared to the traditional transaction system imposed by central banks, cryptocurrencies provide efficiency and reduced costs.
As an example, transactions on the crypto market are instantaneous, which means you don’t have to wait for any transfer periods or approvals for a transaction to be completed. From a business point of view, this feature provides an improvement to the entire supply chain management. You can settle transactions with suppliers, manufacturers, distributors and anyone else involved without unnecessary delays.
In addition, there’s a factor of reduced costs. Since crypto transactions are decentralized, there’s no middleman or third party involved. In other words, there are no additional fees and costs commonly involved in bank-related transfers. These factors are still relevant and interesting for businesses that wish to implement blockchain technologies into their operations and any cryptocurrency that enables these factors in a seamless way will surely win back the trust.
From a business perspective that’s either B2B or B2C in nature, every customer or client counts. Cryptocurrencies present a unique growth opportunity for any business of any size, especially since they can be implemented as an additional payment method. Since cryptocurrencies are decentralized, they’re considered as a global payment option.
The factors mentioned before, such as fast transactions and reduced costs, apply both for businesses and consumers. Therefore, providing cryptocurrencies as means of payment can attract additional customers or clients to businesses that offer such transaction methods. Simply put, even though cryptocurrencies can be a benefit as just a payment solution, there are also various other possibilities for their future implementation and use. That’s why businesses are willing to trust cryptocurrencies once again.
Even though there’s a lot of controversy overshadowing the cryptocurrency market due to numerous hacks, instability, volatility and lack of governance, it doesn’t mean that cryptocurrencies are left hopeless. The market is relatively new, which means there are issues involved. However, the market is growing and showing vast potential, and with the right strategy, it can eventually earn back the trust it has lost.