Forbes has estimated that the market capitalization of crypto globally was approximately 1.09 trillion USD in August 2023. This incredible figure just goes on to show the power and influence cryptocurrencies have, despite numerous governments attempting to bring it under control.

From Skepticism to Skyrocketing Value: The Evolution of Cryptocurrencies

When cryptocurrencies like Bitcoin and Ethereum first made their presence known, they were viewed with distrust and doubt. A passing trend that would, with time, fade into obscurity. Money without any physical proof of existence that fluctuates in value on the daily? That simply seemed to be a recipe for catastrophe. However, as more and more individuals and businesses came to appreciate this increasingly popular decentralised means of exchange, the value of cryptocurrencies skyrocketed. This inevitably invited harsh regulations by many governments, in an attempt to curb the growth of this global phenomenon.

China’s Crypto Crackdown: Control or Genuine Concern

Several countries have taken steps to put a lid on this, trying to stick to traditional financial systems. Some, most notably China, have banned crypto altogether, prohibiting trading and mining. The most recent change came in 2021, when the Chinese government cracked down heavily on the crypto space, leading to the closure of many mining operations and dropping the market by around 21% in China. The government was concerned about the market instability and potential frauds in the crypto space. Which are both valid concerns, until you look at the Chinese government promoting their CBDC(Central Bank Digital Currency), the e-yuan. So is it really instability the governments fear, or just a loss of control?

Several African and Latin American nations including Ghana, Algeria, Bolivia and Ecuador have also issued a blanket ban on cryptocurrencies. 

Crypto’s Growing Influence: Economic Freedom and Global Trade Potential

Yet, the allure of the economic freedom provided by these decentralised economic sources is too strong to resist. New applications for cryptocurrencies continue to enter the market, with NFT’s and the metaverse almost completely tailor-made for these currencies. The sheer potential of these digital currencies can not be disregarded. Billions of unbanked individuals worldwide can use them for financial services. And in the world with its disappearing borders, crypto is becoming a reliable and low-cost way to facilitate global trade and economic cooperation.

Conclusion

Cryptocurrencies are actively redefining money as we know it, and they are doing so in unprecedented ways. Like it or not, we are reliant on technology, and crypto is becoming yet another tool of comfort rather than a novelty. Despite the challenges it faced and the skepticism it endured, crypto is definitely here to stay. Be excited and hold your breath folks, we have the front row seats to witness this change in the future of money.

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