When the first few cryptocurrencies were released, people looked at this idea as another way for underground dealers to manage their transactions and finances.
Because Bitcoin was the most successful of the earlier cryptocurrencies, people tend to associate the whole of cryptocurrency with it.
In the early parts of 2010, the perception of Bitcoin was generally negative. One major issue people had with it was the idea of general decentralisation.
Having something almost entirely unregulated by governments puts several red flags on Bitcoin’s legitimacy, as well as possible legal issues that may occur.
‘At this point, nobody expected that cryptocurrency would develop into what it is today.
But time changed things for Bitcoin
Towards the end of 2010, Bitcoin picked up viral popularity, which put a small amount of value into the digital currency.
When people started to see the value of Bitcoin rise, people began to take notice. When a man from Tennessee with the nickname KnightMB bought a pizza with 10,000 Bitcoin, people saw that cryptocurrency could be used in real life.
Many people believe that this was the beginning of the cryptocurrency phenomenon. Since then, Bitcoin has become the most prominent cryptocurrency in the world at around 40,000 USD to 1 Bitcoin.
Today, several major corporations worldwide own a certain amount of Bitcoin and are involved in the trading and exchange of Bitcoin. Showing us that the private sector does intend to invest in cryptocurrency.
After a lifetime of manipulating and dealing with the current financial systems in play worldwide, most of the major corporations worldwide need to navigate their way through digital currency.
Many companies involved look at cryptocurrency as an investment for the far future.
Employement, banking and Investment
Creating more jobs for the next generation, who are typically more technologically literate, and for future generations as well.
However, the question about the sustainability of cryptocurrency has raised several eyebrows. Several million are being invested into something limited in number.
This would keep a specific cryptocurrency’s sellability at a precise timeframe, thus making it a hazardous investment.
We can look at this interest towards cryptocurrency by the private sector as a shift towards a more digitally inclined financial system. Several corporations are starting to see the possible benefits of investing in cryptocurrency.
One benefit is the ability of cryptocurrency to reach newer demographic groups for certain companies. A recent study showed that around 40% of customers who pay with cryptocurrency are new customers.
In relation to this, the digital nature of cryptocurrency allows for quicker processing of transactions.
This allows for more transactions to be made over a period of time.
Another benefit the private sector takes from cryptocurrency is more on the overall reputation and appearance of the company.
The use of digital currency, more so with cryptocurrency, gives an impression of the company’s aim to be more progressive and forward-thinking with technology.
A major issue that many companies have to deal with is trying to integrate newer technology into any part of the production and sales process. This shows the adaptiveness of the company as a whole, making it look more attractive to newer customers.