In 2021, the market of cryptocurrencies popularized at lightning speed and we witnessed its expansion to territories all over the world and industries of multiple focuses. Within a year, the crypto industry has been exposed to a myriad of factors that caused unpredictable oscillations in prices and proved that this market - although constantly strengthened by new blockchain technology and new pro-crypto initiatives - is very vulnerable to outside events involving political changes, inflation, monetary plans, and war episodes.
The past 24 months have created an impact on the crypto community that it is likely to keep explaining events that are yet to come. The unprecedented growth in crypto popularity, the surging rates of crypto users on all continents, and the boost in crypto-related services and blockchain technology companies and startups make the present quite exciting for crypto venturers but the future might be a bit shadowy, but still promising.
Among the list of many worldwide factors that might have affected the way cryptocurrencies paved their way into communities and industries all over the world, there is the COVID-19 pandemic, which limited people’s normal routines, increasing the amount of at-home time that could be used to explore new possibilities, curiosities, and solutions to navigate a moment of crisis and extreme instability. Since February 2020, the growing rates of cryptocurrencies - including trading volumes, variety of services available, and types of coins in the market - became an ongoing phenomenon in the market, even amidst the downfall in prices. Every week we get crypto-related news regarding new projects, initiatives, and governmental plans to keep moving towards crypto, despite the volatility of the market. Africa is a great example of this crypto-encouraging atmosphere.
Blockchain technology shook the global market for good and the health crisis might have collaborated to give new users the time and the opportunity to get used to its many possibilities and potential. It is estimated that, by the end of this decade, the crypto market will triple its profits, which will put it near the margin of $5 billion in value. We can already witness signs of this groundbreaking wave development right now in different markets and cultures. In Kenya, for instance, the country’s largest power provider has offered a deal of access to geothermal energy to bitcoin miners that are willing to relocate to the region. In South Africa, the first-ever water token has been created. Nigeria is the number one country in Bitcoin trading flow. The Central African Republic recently released the Sango coin a few weeks after it announced the adoption of bitcoin as legal tender in the country. And these names are only in the African continent. A simple article wouldn’t be enough to keep listing countries from other continents too.
Expecting a future without crypto technology is unrealistic and this is why so many channels, governments, brands, investors, and businesses have been constantly talking about it. Understanding the rise of crypto and the direction it is going is crucial to prepare for the benefits and challenges it will bring to many scopes of our lives. Discussions about the future of crypto might often crash-land in paradoxal topics like the need for proper laws and regulatory frameworks to support safe crypto adoption that also involves the worrisome projection that too many regulations might take away the attractive convenience of the crypto market while, on the other hand, the lack of rules might negatively impact the safety of this new era. On top of that, some ecological concerns also surround the world of crypto, especially when it comes to the amount of energy that is necessary to keep feeding the market. So we cannot really expect eco friendly initiatives to take place anytime soon as it is still quite hard to sustaing the functioning of mining pools, but we can expect to see impacts of ecological matters in cryptocurrencies.
The many nuances of the crypto world have to be put under the spotlight in order to understand the way users feel about it and the way we might grow our interaction with the risks and advantages of crypto adoption. The number of crypto adopters grew exponentially in less than 48 months and it keeps sprinting in different directions and niches. As cryptocurrencies get more ‘trendy’ with time, the world also now needs to welcome a variety of investors with different profiles and intentions inside the crypto ecosystem. In Africa, for example, the vast majority of crypto users are young citizens looking to establish economic independence as early as possible or use crypto in favor of the alliance between their financial and professional growth.
Dealing with decentralized financial assets has always included dealing with high volatility not only in when it comes to prices and rates inide the market but also when it comes to the type of users that keep entering the market looking for the benefits of a P2P structure, accessibility, lower fees, more privacy and to distance themselves from traditional, nation wide banking systems. In two years, the crypto market was also highly influenced by brands and companies bringing their strategies into it and governments worldwide starting to dig into its territory. One thing is for sure: two years ago, we did not expect the market to be as it is now, and two years from now, it will for sure be at a place we cannot accurately preview right now. Getting closer to these impacting factors is crucial to navigate crypto now and in the future. The only unquestionable truth is that there are countless opportunities now and more to come.