Digital currencies gained popularity since they came into the financial system. In 2009, Bitcoin was first developed by Satoshi Nakamoto. It was the most successful virtual currency for a long time. But disagreements with the bitcoin community led to the recent schism & a subsequent launch of bitcoin cash. The appearance of decentralized e-currencies is fragmenting the landscape of digital payments further. For example, the very first “sharia-compliant” currency recently developed in Dubai that is pegged to the gold price.
Investors are attracted by the speculative potential of virtual currencies. The ability to exchange cryptocurrencies for cash and their value is generally variable.
Nowadays, specialists are worried about the lack of transparency on the issuance that is not regulated by any of the institutions. Moreover, many people are suspicious about the true value and doubt the asset’s decentralized nature.
The popularity of initial coin offerings (ICO) is growing rapidly. A modern IPO form has been recently released by many companies to crowdfund the very new cryptocurrencies that have been pushing the virtual currency’s price upward. At present, nearly 20 ICOs have been launched monthly. But due to scrutiny and regulation, investors are not properly informing about them and becoming the victim of scams.
Cryptocurrency is the natural result of the digitalization of the world. But the future of cryptocurrency depends on several factors including the stability, transparency, security, and confidence of the user. Moreover, hacking attacks use more significant threats that may lead to full abandonment by consumers. As the government ponders on the topic, a central bank adviser from China recently said, “Bitcoin [and other virtual currencies] can be an asset, but will never be a currency”.