Cryptocurrencies have started as an online craze. They are made for the needs of online customers and online investors. Their digital form is what has made them so popular, since they are not affected by the governments and the changes in the real economy.
However, now when more people than ever are using these currencies, this is starting to impact the economy as a whole, since there’s a lot of money in it. This also means that the governments are going to get involved in this industry, which always creates a disturbance.
The expansions
At first, there were only a few of these digital currencies, and thus there was a limited number of people who could get in on them. Now, the currencies are expanding both in number and in scope, and there are more currencies than ever to choose from.
ICOs (initial coin offerings) are used to crowdfund new currencies. This is done by using the existing cryptocurrencies to fund the creation of new ones. It allows users to create their own currency in a more democratic and open way. The number of currencies created in this way will increase.
Small businesses
Digital currencies are usually seen as something that’s only of interest to tech-savvy and business-savvy users that are familiar with trends in online commerce and investing in general. However, traditional businesses that don’t count on their customers being this informed are starting to notice the benefits of using cryptocurrencies as a payment method.
Traditional businesses could find cryptocurrencies useful because they attract younger customers, but also because the payments are instantaneous. This really helps small companies that find it challenging to wait for the payments to clear, since they rely on having a steady cash flow.
Cutting out the middleman
Investing in foreign currencies and in the stock market used to be done via a middleman. They used to charge a fee for their services, usually in the form of taking a percentage of your earning. A lot of the times, it was difficult to know what the services actually were, but you had to pay for the access to the market itself.
Those who want to buy dash are able to do it without a middleman and without any hidden fees. This is especially important to those just getting into digital currency trading because they are keeping all of their earnings right away.
Governments
Digital currencies came about because their creators didn’t trust the governments, neither in terms of running the economy, nor when it comes to protecting your personal data. They used to exist outside the rules and regulations, but now when there are more users than ever, the governments will get involved in this industry.
It’s difficult to say how the rules and regulations controlling the digital currency markets will look, but there are going to be some and they are going to change as the industry does. The same goes for taxing the profits generated from trading in digital currencies. Online investors will have to invest in tax attorneys in years to come.
Cryptocurrencies are no longer solely an online phenomenon. They are affecting the “real” economy both in terms of regulations and in terms of traditional businesses starting to use them.