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Will Cryptocurrencies Endure as a Permanent Feature?

Cryptocurrency conversations are prevalent in various spheres, even gaining attention from mainstream news outlets. However, one might wonder if this trend is merely temporary or if digital currencies will endure.

Individual in a café displaying a sign indicating "Digital currency Bitcoin accepted here."
Individual in a café displaying a sign indicating "Digital currency Bitcoin accepted here."

Will Cryptocurrencies Endure as a Permanent Feature?

Cryptocurrencies have been making headlines and attracting investor attention, with valid reasons. Despite the surge to over 13,000 different cryptos, early investors in Bitcoin (-0.72%), Ethereum (-2.92%), and other leading cryptocurrencies have reaped substantial profits. Initially worthless in 2009, Bitcoin's value skyrocketed to almost $100,000 per coin by November 2024.

However, the lasting potential of cryptocurrencies is under question due to inherent issues that require resolution. Investors and the general public are concerned about holding a worthless asset. Although debates persist over the eventual outcome, the burgeoning crypto industry seems to be here for the long haul.

Crypto FOMO

This refers to the fear of missing out on potential gains in the volatile, rapidly changing landscape of cryptocurrencies.

Rapidly Growing User Base

Despite early predictions that cryptocurrencies were a passing trend, it saw a significant decline in crypto prices as of early 2022 from their late 2021 peak. However, as inflation eased, some crypto prices began to sway upwards sharply.

Cryptocurrencies are highly volatile and an extremely risky investment. New investors should approach this market with caution. Despite the wild fluctuation in value, there's an increasing adoption of cryptocurrencies. According to Pew Research's poll conducted in late 2024, only 17% of Americans have ever invested in, traded, or used crypto. Global crypto users reached 833.7 million in 2024, representing nearly 10% of the global population, demonstrating a small but fast-growing user base.

Crypto investor and content creator Lark Davis on Twitter (now X) pointed out that crypto uptake mirrors the growth of internet adoption in the 1990s when comparing Crypto.com's data with World Bank's internet usage data.

Although the crypto user base represents a small fraction of the global population, compared to digital-native currencies introduced just over a decade ago, it is still a significant number. Despite the unpredictable value swings, the allure of cryptocurrencies and the underlying technologies (such as blockchain and cryptography) continue to grow in popularity.

Businesses Leading the Charge

If cryptocurrencies are to achieve long-term success and broader usage, real-world applications and everyday reliability need to be developed. Companies investing in cryptocurrencies and relevant technologies will play a crucial role in this.

While some early adopters aim to profit from crypto price fluctuations, the field needs genuine commercial momentum. Organizations, such as Coinbase Global (-9.63%), are pouring money into various projects. Some companies directly purchase Bitcoins, like MicroStrategy (-7.51%), which aims to raise $42 billion to buy more.

Others, like Block (-2.88%) (formerly Square), are developing tools for crypto integration into the broader economy. Jack Dorsey, Block's CEO, aggressively fosters Bitcoin's use as an actual currency instead of merely an investment. Alphabet's Google Cloud launched a blockchain division in 2022 to help customers develop blockchain applications.

These developments, over time, should enhance the usefulness of cryptocurrencies and extend their longevity. Applications, such as NFTs in the art and music industry, have already gained traction. Developers are building "decentralized finance" apps, eliminating intermediaries like banks, to speed up transaction times and cut fees by using Ethereum and other altcoins (alternative cryptocurrencies).

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  • Luke Horsfall
  • Nate Weisman

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As technology progresses, various applications are likely to gravitate towards select key players within the vast crypto landscape. Currently, over 13,000 cryptocurrencies are in circulation, but many of them might result in financial losses if purchased and held for a lengthy period.

However, it's important to note that crypto's longevity is not in question. The specific form it takes and its future role in our daily routines are yet to be determined. If you decide to venture into the crypto sphere, take it as a risky investment space. Keep your stakes minimal and diversify your portfolio.

Suzanne Frey serves as an executive at Alphabet and is part of Our Website's board of directors. Our Website holds investments and advocates for Alphabet, Bitcoin, Block, Coinbase Global, and Ethereum. Our Website follows a strict disclosure policy.

Investing in cryptocurrencies, like Bitcoin and Ethereum, can be a profitable venture given their significant price increases over the years. However, the crypto market is highly volatile and investments should be approached with caution.

Despite the risks, companies are pouring funds into cryptocurrencies and related technologies to develop real-world applications and enhance the usefulness of cryptocurrencies. For instance, Alphabet's Google Cloud launched a blockchain division to help customers develop blockchain applications. These developments could extend the longevity of cryptocurrencies in our daily lives.

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