The Next Big Things in Cryptocurrency | by Stephen Dalton | Aug, 2022 – DataDrivenInvestor

BLOCKCHAIN | CRYPTOCURRENCY

Cryptocurrency is all the rage right now, and for good reason. Many wonder if blockchain technology and stablecoins are the next big things in the cryptocurrency universe

The Next Big Things in Cryptocurrency — Dreamstime #114402912.

Blockchain technology and stable coins have the potential to completely revolutionize how we do business online — maybe everywhere!

Cryptocurrency, particularly the use of Central Bank Digital Currency (CBDC) to ease or erase global governments’ ability to “print” new money whenever they wish, could be the best way to control inflation.

However, since the collapse of US Terra, a “stablecoin” used by the International Monetary Fund (IMF) to issue loans and grants to countries around the world, many in government wonder if it is the right approach.

With so many different cryptocurrencies (nearly 20,000), it can be hard to decide on one that is right for you.

Stablecoins & Blockchain Technology

Stablecoins Make SO MUCH Money. Here Is How

#AnthonyPompliano #Pomp #Bitcoin

The Rise of Stablecoins

Stablecoins are a cryptocurrency designed to be much more stable than other types of currency ledgers. They are backed by assets such as gold, silver, or other currencies, like BTC or AVAX.

They are typically not subject to the same volatility as other cryptocurrencies. This makes them an attractive investment for those who want to protect their money from inflation or other economic fluctuations.

Look for stablecoins to make a big splash in the cryptocurrency world in the coming year. This could be the case if governments decide to create a CBDC, as China has already done with the Yuan.

“China’s CBDC is the digital yuan (officially called the Digital Currency Electronic Payment) and is issued through various commercial banks and digital systems, including mobile payment apps such as Alipay and WeChat Pay.” — Gilbert + Tobin.

“The United States has also begun exploring the potential role for a United States Central Bank Digital Currency (CBDC). Secretary Yellen has said that a CBDC could contribute to a more efficient payment system and may have the potential to mitigate some of the risks posed by ‘private’ stablecoins. Biden’s EO placed the ‘highest urgency on research and development efforts into the potential design and deployment options of a United States CBDC.’ Yellen said that a CBDC would present a ‘major design and engineering challenge that would require years of development, not months’.” — Jones Day.

Even after the debacle over the Terra US not-so-stable stablecoin, many governments (86%) are looking into establishing a CBDC as a method of making payments and transferring money peer-to-peer (P2P) worldwide without interruption and interference from central banks and others that charge massive fees.

The question remains, how do we develop a genuine stablecoin that can be “pegged” to the local currency, and that is not subject to volatility and inflation.

The Increasing Use of Blockchain Technology

Blockchain is the underlying technology that powers cryptocurrencies like Bitcoin. It is a decentralized, public ledger that records all transactions chronologically and publicly. This makes it very secure and transparent.

Many businesses are beginning to adopt blockchain technology to streamline operations and reduce costs. Look for this trend to continue in the coming year as more businesses jump on the blockchain bandwagon.

Blockchain technology is not all about cryptocurrency. In reality, the underlying decentralized ledger technology continues to find applications in a diverse range of industries all in the effort of changing how things are done’ and improving people’s lives.” — 101 Blockchains.

Blockchain in 3 Minutes | What is Blockchain | How Blockchain Works | Blockchain Explained

#blockchain #whatisblockchain #blockchainexplained

This is another excellent video that explains blockchain. It was commissioned by IBM.

Blockchain Explained

The use of blockchain technology in a variety of ways could make businesses more efficient and adaptive.

What Should You Examine Before Investing in Cryptocurrency?

Make sure that the currency you are investing in is backed by a solid team. This team should have a good project (what is the purpose of the coin?), a low maximum number of coins or tokens, and show you a roadmap of where they plan on taking their currency. Without this, it is hard to know if the currency will be successful.

The best place to find out this information, in my opinion, is CoinMarketCap. I used the link to its information on Bitcoin (BTC) because it was the first, and most coins follow the BTC lead up or down.

When you scroll down, you’ll find a paragraph about the coin or altcoin’s current price and data, including its circulating supply, maximum supply, and market cap.

Then, further down, you’ll typically find a paragraph about the founders and another that explains its purpose or what makes it unique.

A strong community is essential for any crypto to succeed. Make sure that there is active development and a healthy discussion around the currency before you invest.

The currency you are investing in has a use case. There should be a real need for the currency for it to be successful. Therefore, many investors steer clear of “meme” coins like DOGE or Shiba Inu. Although, a few online retailers and service providers have started accepting DOGE since Elon Musk said DOGE, “Felt like the people’s crypto.”

Take for example, Petco, accepting DOGE makes a great deal of sense for them.

Keep these things in mind and you will be well on your way to finding the next big thing in cryptocurrency.

DISCLAIMER: This article is for entertainment and informational purposes only. It should not be considered financial or legal advice. Not all information will be accurate. I am not a financial adviser, and you should consider anything I write as informational and friendly banter to show you what is possible if you invest your money in these vehicles. However, there are no guarantees. Consult a financial professional before making any significant financial decisions.

Note: This post contains affiliate links. Read my disclosure statement for additional information.

About the Author Photo by Jean Springs from Pexels.

Stephen Dalton is a retired US Army First Sergeant with a degree in journalism from the University of Maryland and a Certified US English Chicago Manual of Style Editor. Also, a Top Writer in Nutrition, Investing, Travel, Fiction, Transportation, VR, NFL, Design, Creativity, and Short Story.

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