A lot has changed since everyone and their aunt started panic-buying cryptocurrencies back in December 2017.
Some people are still holding on to their coins, waiting for the next big wave, but for many, there is no doubt that the initial enthusiasm for cryptocurrencies has long since worn off. Up until recently, most big tech firms had relatively little involvement in the cryptocurrency industry, but now, it looks like many of them have merely been biding their time.
Over the past few months massive companies, including Facebook, Yahoo, Google and even Amazon, have showed increased interest in the potential uses and applications of cryptocurrency. Bitcoin could rise to €10,712 over the next two weeks due to its current market structure and the upcoming debut of Facebook’s GlobalCoin cryptocurrency.
Facebook is expected to release the white paper for the currency on June 18 with an official launch later this month. Once unveiled, GlobalCoin will allow users to transact across the social media channels in the Facebook ecosystem and apparently, employees will also have the option of being paid in GlobalCoin.
This year is the new 2017 for bitcoin and cryptocurrency, with bitcoin looking like it can remain the most valuable cryptocurrency in the world if it manages to fix its main issues. The bitcoin price, which has recently rallied to year-to-date highs, has been desperately seeking direction over recent months as the traditional finance industry, global tech giants, and the world’s regulators mull how to proceed with bitcoin, blockchain, and cryptocurrencies.
As always, regulation remains an issue, but there are very real dangers to over-regulating the industry. If, for instance, the US implements stricter cryptocurrency rules than the EU, it could stamp out associated potential technological innovation. Entrepreneurs might relocate, and the US could cut itself off from new tax revenue streams. China has seen this. When it cracked down on cryptocurrency mining – the process of running computers to verify transactions and solve mathematical problems in exchange for a payout in cryptocurrency – miners simply moved their expensive computers offshore.
We will witness the crypto market pick up again
Compare that to the northern European country of Estonia, which has seen an economic boom thanks to its pro-crypto stance. Estonia in recent years has implemented favourable regulations and crypto tax rules which created a business-friendly environment, attracting crypto startups, mining companies and ICOs.
Today, tech giants are in control of their users’ data because their survival depends on it – its their core product. They understand that decentralisation and blockchain technology will transition ownership of this user data away from themselves and into the hands of the users. In other words, blockchain technology is a direct threat to the status quo.
Fearing for their future, these companies are making strides to harness and morph blockchain technology to fit their own purposes, to afford themselves control again – except that this time, it’s not possible. Blockchain is an open-source technology which can’t be controlled by any single entity. Similarly to when the internet disrupted industries across the board, no one can stop the revolution as long as there are people willing to take up the banner of blockchain.
Understandably, given the newness of cryptocurrencies, most major tech companies have held back from implementing it right away.
Since the value of cryptocurrencies has dropped, many users have shied away. However, adoption by these major platforms could help ignite the already renewed interest in cryptocurrencies. Over the next few months, it is likely that we will witness the crypto market pick up again. This could even cause a spike in the value of cryptocurrencies, which is especially welcome news for those who have held on to their coins.
But what exactly does this mean for users? Well, the truth is, no one really knows just yet. However, the adoption of cryptocurrencies by such major platforms has made one thing perfectly clear: cryptocurrencies are here to stay.