Why Stick With Cryptocurrencies Amid Rise of Digital Banknotes
So you have got a hefty virtual wallet in your crypto account. You must be pondering on whether to keep them or trade them for some digital banknotes. With the digital Yuan soon to be made available overseas, there is a good chance that you can also secure some electronic money. Nonetheless, you can stick with your cryptocurrencies for these reasons. A secure trading platform you can pay a visit to is the Yuan Pay App.
Just the same good old money
Despite all the hype surrounding digital currencies, it is worthy to note that they would be nothing more than the digital version of your cash. The nature, value and characteristics would stay the same except the form. This is why the existence of cryptocurrencies would be virtually unaffected by the evolution of money.
For instance, the digital dollar will only be the digital form of the U.S. Dollar.Instead of the printed version, it will only be reproduced in virtual form. Nothing more will change except the appearance or, specifically, the lack of its physical attribute. Instead, it will take the form of digital money created through online ledgers.
Still, the value of digital notes would be proportionate to the value of money if not the latter’s complete equivalent. It would still follow the Bretton Woods monetary system. That means the value of your digital banknotes will be set by the state. It will be regulated in a way that would help stabilise the local economy. In the same way, prices will be dependent on how the state would set the value of its legal tender.
What would be the common ground between digital banknotes and cryptocurrencies? Both will be sharing the digital form. There is nothing more to share aside from the form. The stark difference would show when it comes to financial security and risks.
Digital notes are not direct competitors
While states are hoping to catch up with the rise of digital currencies, there is no direct rivalry between digital notes and cryptocurrencies. These two digital assets belong to two different markets. The first one is subject to the control of the government, while the other is good on its own. In effect, the two are indirect competitors as far as the target market is concerned.
Direct competitors of cryptocurrencies are those players within the crypto market. Not unless a state would like to impose a monopoly of virtual coins in crypto trading platforms, it is not likely to prohibit these digital assets in the locality. The policy of neutrality as regards the crypto coins has long been observed by most countries except China. It is not surprising why the digital Yuan is the only digital coin available there.
The target market of digital notes is far from the typical crypto market. It would likely be composed of investors who are into highly secured and less risky investments. This does not fit the profile of crypto investors who are into less secured and highly risky digital assets. There is no doubt that these assets belong to two different worlds. In effect, they are not likely to be pitted against each other.
With the high-risk environment, crypto investors can be considered exceptional trailblazers. They have gotten acquainted with the risk factor that they can fairly assess their chances of earning decent returns. These investors are not only risk-takers but risk diversification specialists. And they would settle for nothing less than the excitement of going through the roller coaster ride. Nonetheless, this game is not for everyone.
Crypto has an independent realm
Remember that the crypto market exists on its terms with its reality. It is for this reason that crypto coins are independent of external intervention. For many years, the government has managed to keep its distance by observing the policy of neutrality. The only time it would bother looking into crypto operations is when there are incidents of fraudulent activities. Still, it has the mandate to protect its nationals from cyber threats and attacks.
For the longest time, the crypto market has thrived without government intervention. It is only when there are cases of fraud and cybercrimes that the state would walk into the crypto world. This has been observed several times when there were crypto heists against innocent investors. Consequently, the crypto market welcomes this kind of interference.
Once the commotion has been resolved, the crypto market would be left on its own. Lessons have been learned following the series of cyberattacks. Self-regulatory measures have been adopted by crypto players to protect the stakeholders.
The only condition for cryptocurrencies to thrive is the trust of the people. As long as subscribers are keeping the blockchain alive, the market is expected to stay active. This is why you can rest assured that your crypto coins will stay relevant. There is a good chance that this digital asset will stay for good in its ever-expanding universe.
There is more to the crypto market
There might have been a new development in digital notes, but the crypto world is not likely to get left behind. Perhaps you might want to look into the ambitious plans of some leading cryptocurrencies. Bitcoin will soon launch its latest update after its press release early this year. Ethereum, with its Ether coins, has recently undergone an initial upgrade. And Cardano has been closely following its roadmap that will span over several years.
With many other cryptocurrencies in the market, there is likely to be a continuous inflow of innovation to keep up with the fast-paced environment. The three market leaders have already set the bar high for other players that intend to join the club. There is an opportunity for new crypto coins to introduce something different, if not something better, from the traditional crypto features and functions. All these are intended to fuel more interest in the crypto market.
There are also challenges that continuously pose windows of opportunities. The road to finding green solutions to crypto operations is still up for a race. Ethereum is now running at the forefront of finding ways to minimise if not eliminate carbon emission.
Conclusion
These are only a few of the reasons why cryptocurrencies will endure new monetary development. After all, digital notes would only offer a new form of money. These are not likely to be the direct competitors of crypto coins knowing that the latter has its market. More than anything else, the crypto market will always be a home to innovations. Do not also forget that the market bears risks, which is why you should invest with extra caution.
The post Why Stick With Cryptocurrencies Amid Rise of Digital Banknotes appeared first on Ripple Coin News.
OhNoRipple via https://www.ohnocrypto.com/ @Guest Author, @Khareem Sudlow