Earlier this month, PayPal announced that they would be entering the cryptocurrency market in 2021 and allow their customers to buy, hold, and sell cryptocurrencies like Bitcoin.
Over the last decade, Bitcoin has grown tremendously, and its value stands at approximately $13,000 per Bitcoin today.
However, Bitcoin is more than just an investment. The original vision was to create a decentralized currency and allow transactions worldwide without the need for a banking intermediary involved.
Due to the lack of mass adoption, cryptocurrencies are still considered a serious payment method in the West, with most people buying to hold. In emerging economies and in countries with unhinged inflation, Bitcoin is proving to be a worthy replacement for cash.
Role of cryptocurrencies in emerging economies like India
Bitcoin was released in 2009, just a year after the global financial crisis of 2007-08. The person, or group of people, who created Bitcoin released it under the pseudonym “Satoshi Nakamoto.” Even though they are still unidentified, it is clear that they intended Bitcoin to be an alternative to the traditional banking system that can be controlled and manipulated.
In many emerging economies around the world, Bitcoin is being used for its intended purpose. One of the most prominent examples is Venezuela, a country planning to use cryptocurrency in global trade to bypass the stringent US sanctions it is currently facing.
Countries with high inflation like Argentina are also witnessing a record number of people investing in Bitcoin as they begin to lose confidence in Pesos, the national currency.
Bitcoin is also being adopted as an international payment system in countries like India, where traditional banking is yet to provide a cheap and effective global payment system.
One of the most popular uses of cryptocurrency is for payments and withdrawals in online casinos in India. Many highly-rated online casinos in India already accept cryptocurrency as a payment method, with more looking to accept it in the future.
Cryptocurrency is also being adopted as a payment channel for freelancers exporting their services in India, as it is one of the easiest ways of accepting international payments.
Challenges and opportunities
While the adoption of cryptocurrency is higher than ever, we’re still miles away from mainstream adoption. As the crypto market matures, more institutional players like PayPal take their first steps towards accepting and legitimizing the technology and concept behind cryptocurrencies.
Bitcoin stands as the most profitable asset class in 2020 and has provided exponential returns long-term. Going by the current news, it seems now, more than ever, that Bitcoin is here to stay and prosper, both in developed and emerging economies.