Will Crypto Rule the World?

As the saying goes, you’ve made it as a currency when people start tattooing you on their bodies. Not only have cryptos checked that box, they’ve become major players in the $$$ world—aka finance.

And while we don’t recommend a doge tat, we do recommend boning up on crypto, even knowing how volatile it is

Here are 3 very likely scenarios for crypto as it moves from its awkward teenage years to a much more sophisticated adulthood. 

 

With digital money already overhauling the payment systems, cryptocurrencies will continue to upend their physical currency colleagues like the humble US dollar. Next on its to-do list? Become the go-to safe haven asset

Right now that distinction belongs to gold, because its value is no longer tied to the number of bricks someone may or may not have buried in their backyard. But, cryptos never existed as physical things to begin with, meaning they could usurp gold’s place in portfolios with their potential to be both inflation and recession-proof. 

On the other hand, the rise of stablecoins will put crypto on the “normal stock option” map since these guys are tied to real-world assets. The world is truly crypto’s oyster.  

 

Crypto’s recent success isn’t a fluke. It’s part of a broader movement away from centralized finance. The term used by folks who are hyped on this shift is…decentralized finance, or DeFi

Why are those people so hyped? The idea of DeFi is pretty revolutionary. Since the dawn of time (or at least the dawn of money), there have been middlemen known as “banks” acting as arbiters of transactions and debt servicing. The idea of DeFi would kick the middlemen to the Wall Street curb.

The promise of DeFi is a financial system that’s more efficient, more tech-driven, and—dare we say it?—potentially more democratic.

 

Yep, we’re talking about a wholesale rejiggering of the financial system. Can you stand to zoom out even further? 

We’re seeing new forms of money beyond even crypto and DeFi. New economies are being built inside video games, where players exchange virtual currency for virtual goods. 

And you’ve probably heard a thing or two about NFTs, a blockchain-based way to claim exclusive ownership of a piece of art, video clip, GIF, or even a newspaper column. If they stick around, NFTs could be yet another way for value to be stored. 

What this really points to is that there are going to be lots of cryptos, lots of options, and lots of freedom to do what you want to do with your digital currencies. While we have no crystal ball, crypto’s future is quickly becoming the present. So, long story short, that doge tat might be okay after all. 

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