Cryptocurrency is dominating the world of finance. It’s a tech-savvy way to invest that invites users to become experts. Different forms of cryptocurrencies are gaining plenty of traction in mainstream popularity. For unfamiliar users, it can be an off-putting and overly technical concept. In simplified terms, cryptocurrency is essentially a decentralized digital currency in which dollars are being exchanged for crypto dollars. These payments are done online, with no single entity having control over the currency. User-friendly media platforms, such as Coinbase, eToro, and Robinhood, to name a few facilitate the transaction of digital currencies. Surely, many people are familiar with the term “bitcoin”, which has in its own right earned itself as a household name.
Bitcoin is a singular form of cryptocurrency; one among the more than 6,5000 which are being exchanged today. Growing in vast popularity and mainstream cult following, cryptocurrency is maneuvering in the relevancy of impacting the future of business. The potential is unlimited. Analysts weigh in that the cryptocurrency market size is expected to grow from 1.6 billion in 2021 to USD 2.2 billion by 2026, at a CAGR of 7.1% In which statistics validate that the global crypto market won’t hinder growth anytime in the near future. Given the mainstream popularity, it is imperative to incorporate cryptocurrency into our financial knowledge. Cryptocurrency is an opportunity to understand finance on a level that is continuously expanding. The future of finance brings to question: are we gravitating away from traditional investing? Is the world on a path of tokenization? Experts have raised inquiries in regard to the potential of cryptocurrency replacing our traditional form of currency and assets. It is even dubbed as “digital gold”, a nudge to the great power it holds. With abrupt changes in fluctuating trends, there is no doubt that cryptocurrency is a staple in the future of financial markets.
Theoretically, cryptocurrency challenges the frameworks of traditional investments. The age demographic beyond Millennials and Gen Z find cryptocurrency to be a newfound concept. Millennials and Gen Z audiences have incorporated fresh, gamification in their methods. New users with little financial or technical knowledge can find the world of cryptocurrency to be daunting and intimidating. Once started, the challenge is navigating which crypto of choice to buy and sell. There are many factors at play that put a new spin on financial literacy. Financial professionals are forced to understand cryptocurrencies to cater to and accelerate their client’s interests. Finance is experienced in a newfound way; the way of the future. Financial literacy is continuously an evolving state and its variables assets continue to rise. Understanding what gives cryptocurrency value and utility is intertwined to a better perspective of how our current currency is being challenged. Cryptocurrency is revolutionizing finance and investment. Financial literacy provides the education and necessary skills to make informed economic decisions. The profound effect of cryptocurrency on financial literacy will follow generations.