Knowing the history of something is vital in tracing how it has improved or evolved through the years. At the same time, you can also look at history to prepare for more developments in the future.
In the case of money, its evolution has been so massive that it took time to pave the way for the rise of digital currency. Prior to the age of cryptocurrencies, you have seen some precursors beforehand. These include credit cards and banking apps, which enable you to make purchases or transactions online without using physical money.
Then again, the rise of digital currency gave users an alternative method of exchange, which is considered one of the most notable breakthroughs in the financial and investment industries.
Blockchain, the technology that powers digital currencies, makes decentralization possible such that no person or entity can control the system of exchange. With traditional or fiat currency, you would need to go through specific channels each time you make a transaction. This results in service charges, longer processing time, and potential approval issues.
By using cryptocurrencies, you are not dependent on third-party intermediaries, so you get to save in fees, and you save time, as well.
Now that digital currencies are gaining worldwide attention, you can expect to see more innovations, products, and services within the industry. In fact, hundreds of virtual currencies now exist in the market compared to when it was just starting out a few years ago with only a handful of players.
Trends also indicate that more and more functionalities will be introduced in various cryptocurrency exchanges, enabling users to maximize their digital assets. Of course, security will always remain a major area of concern, so better encryption technologies will most likely emerge, too.
Here’s an infographic that offers more insights about the next big thing for digital currencies.
