Cryptocurrency is only one of many new emerging trends that made headlines in 2021.
The evolution of these digital currencies has taken hold of the digital world and is inevitably transforming the way we spend our money. We are standing on the starting line of a new form of finance captured by a wide array of new innovative platforms. Blockchain technology gradually pushes cash out while embracing digital wallets for their convenience, performance, and decentralization. Over the past couple of years, due to the ongoing pandemic, conducting financial transactions over the internet has dramatically escalated to new levels. However, like with many new tools at their early stages, companies are still attempting to figure out how to fit crypto into their business model. FG|PG dives into the world of digital currency, blockchain technology, and where it’s headed in 2022.
What is blockchain tech, and how does it influence crypto?
Cryptocurrency is in its infancy, especially when digital security plays a huge role in determining whether the rest of the world jumps on board. It begins with the introduction of blockchain technology, a new tool that many have yet to discover. We will analyze this new technology’s anatomy to better understand which specific financial areas have transformed recently. Let’s begin by defining Blockchain, as a shared changeless account that securely links blocks of encrypted data transactions in a network. In other words, blockchain is a decentralized system of financial profiles. Since the start of the crypto gold rush, many cryptocurrencies have emerged, but only a few hold some significant value. According to CoinMarketCap.com, there are more than 16,000 cryptocurrencies in the market. Bitcoin is the largest, followed by Ether, which operates alongside all cryptocurrencies other than Bitcoin on the Ethereum blockchain.
Additionally, since digital currencies do not operate with central banks and government organizations, they remain controversial because many experts claim they are unattached to an “unregulated banking system.” Regardless of the debates, the ongoing pandemic has pushed us further into a cashless and contactless society, popularizing the use of crypto all over the globe on a massive scale. Snowballing to the point that it’s well on its way to becoming a significant contributor to the world economy in the next few years. Studies by Gartner state, that by 2024, at least 20% of large enterprises will use digital currencies for payment, store of value, or collateral, which will alter current financial networks and business models across the board. From the tech industry to the event industry, cryptocurrency can be the newest primary form of currency soon, whether skeptics continue to debate or not.
How crypto will influence the event industry
Last Summer, 12,000 attendees assembled at the Mana Wynwood Convention Center in Miami for Bitcoin 2021 last June. This event allows many crypto experts and supporters to share their insights on how cryptocurrencies will play a significant role in the event industry. In 2022, the movement of cryptocurrencies is gaining momentum, to the point where hotels, production companies, and event specialists themselves, are competing to be ahead of the curve before the trend becomes fully adopted.
Although some claim that crypto has some negative consequences, most crypto experts agree that it will positively affect our society, for the greater good. They claim the rise of blockchain-based money will facilitate in-person interaction, particularly at trade shows, meetings, conferences, and many other events. Chief of staff of BTC Inc. and the business development company dedicated to Bitcoin’s adoption, shares, “it was notable when a company would agree to accept Bitcoin. Now, we’re already accelerating toward the point where it’s almost not even news anymore”. If you need some more convincing that the rise of crypto is inevitable, even countries have replaced crypto as their primary form of currency. For example, El Salvador announced at Bitcoin 2021 that it would be the first country to accept the cryptocurrency as legal tender. Safe to say that crypto is here to stay for the long haul as it continues to break down many barriers.
Predictions For Crypto
Ultimately, what does this all mean for the future of digital currency? Is it just another technological trend that will decline, or does cryptocurrency have the potential to lead the future? Avivah Litan, analyst, and VP at Gartner, who also co-authored its detailed report on digital disruption, firmly believe that we’ll see cryptocurrencies utilized for retail payments in about three to five years. As we continue the cycle of an ongoing pandemic, it’s hopeful to hear that technological advancements continue to reshape the way we live for the better. Governments around the world are also opening up to crypto now. So far, 83 countries are experimenting with or implementing so-called Central Bank Digital Currencies, or CBDCs, which represent 90% of global GDP, according to the Gartner study. It may be too early to tell, but you will want to be ahead of the game if or when crypto skyrockets. Freddie Georges Production Group is a firm believer in keeping up with these digital trends to ensure we provide as much value as possible for our clients. Regardless of the unease, some may have about the potential crypto holds, the future looks bright for technology, and we are ready to ride the wave.