If you want to get a real sense of how cryptocurrencies investments and blockchain technology are riding the crest of a wave as we start a new decade, you should look beyond the usual financial media reporting and odd snippets on financial TV outlets. Instead, have a look at the world’s biggest crowdfunding projects, which sees of dollars billions flooding into start-ups based around blockchain and cryptocurrencies. However, despite their tremendous popularity and growth, many investors are concerned if cryptocurrency is here to stay. There are causes for concern; not in the viability of blockchain-orientated businesses, but because of the fervor around investing in them. Many blockchain start-ups have seen unpredictable levels of intense funding. Continue reading this post if you are interested if cryptocurrencies in business will take off through the 2020s.
The U.S Government’s Position On Cryptocurrency
Before businesses consider using cryptocurrencies to finance operations, they must consider the U.S governments undecided position on the online money. The point, as such, is that the growth of cryptocurrency in business must be treated with caution. The 2020s feel like a pivotal decade for mainstream adoption, as if we will get a sense of an endgame when it comes to crypto. But as we saw with the bursting of the dot-com bubble, there might be some pain to experience beforehand. Indeed, it is worth pointing out some of the challenges that crypto still faces, and which do not look like being resolved anytime soon. For a start, there is the lack of enthusiasm among lawmakers, with particular scorn coming from the White House and Capitol Hill. Donald Trump has already claimed that he is not a fan of Bitcoin and other cryptocurrencies. If the U.S government begins placing restrictions on business uses of cryptocurrencies, it can sacrifice planned operations. Before businesses invest in cryptocurrency, they must be aware of the potential for changing regulations.
The Australian Central Bank’s Decision To Reject Libra
Perhaps some of those headwinds are best summed up by the initial excitement around Facebook’s Libra coin, and then the deflated pessimism ever since. Libra, given its corporate backing, looked set to be the most mainstream of cryptocurrencies one day, but it has hit several roadblocks. For example, the Reserve Bank of Australia is among the first to say no to Libra without a serious overhaul of regulation. Their decision showed how easily various cryptocurrencies can be devalued and rejected. Being that this occurred in the sense of a sovereign nation, the possibility of rejection is equally as present in business uses.
Existing Business’s Cryptocurrency Uses
Talk of regulation can lead to deeper concerns for all types of business. With the surge in cryptocurrencies popularity, many businesses begun seeking to integrate it as a payment alternative. Other businesses, however, outright rejected cryptocurrency from the beginning. Amazon is famously reluctant to adopt cryptocurrency, but entire industries can have issues. Other businesses have accepted the value of currencies, and sought to integrate it across the board within their business. Mansion, for example, is one of the biggest online casinos in Canada, one that has always looked to be on the front foot when it comes to accepting new payment methods. But there is downward pressure on that industry from regulators who do not like the anonymity crypto payments offer. Of course, we should not confuse the adoption of cryptocurrencies with the roll-out of blockchain technology. And, although their very nature means they often go hand in hand, one could see the simultaneous embracing of the latter and exclusion of the former by regulators. Before you can integrate any form of crypto into your business, you must be aware of existing attempts and uses.
Cryptocurrency In The United Kingdom
Currently, the United Kingdom sits in between the most extreme and accepting countries concerning cryptocurrency regulation. To date, they have not produced any piece of formal legislation concerning cryptocurrency. The approach officials in Britain have been taking appears to be on the more lenient side compared to other nations. In terms of business usage, it is currently accepted as a means of payment and operational uses. However, many government and parliamentary officials in the UK have had negative words to say about Bitcoin’s cryptocurrency inception and popularity. Despite this, they have not yet applied any form of law preventing the purchasing and usage of various online tokens or coins. Unlike other nations like the United States and Australia, the UK has taken a somewhat more lenient approach towards the existence of cryptocurrencies. Consider the United Kingdoms current position if you are looking to integrate cryptocurrency for your business uses.
In the end, it is challenging to envisage governments and financial institutions embracing the key mantra of cryptocurrency – decentralization – without an existential overhaul of crypto’s nature. Does that mean cryptocurrency will become worthless? Not at all. Yet, it does suggest that a reckoning will come sooner rather than later. And that is arguably what makes the 2020s pivotal for cryptocurrency in business. There will undoubtedly be headwinds coming, enough to really dampen the exuberance among those pouring cash into blockchain start-ups. But once we get through to the other side, and cryptocurrency and blockchain have become too important to think that they will not, we will get an idea of what mainstream crypto will indeed mean to the business of the future. To learn more about cryptocurrencies in business throughout the 2020’s, consider the points mentioned above.