After Nakamoto’s attempt to make a decentralized framework for money flow, there was not any significant news until 2017. While a great move is witnessed in 2019 when the giant bodies in the world started taking interest in the blockchain technology. Since 2009, there came hundreds of cryptocurrencies in the market but few survived. But the technology underlying virtual currency continuously revolutionized since the creation of Bitcoin.
Acceptance by Facebook and Chinese Government
Last year, blockchain is taken into consideration at national as well as on the international level. Similarly, governments and private financial institutions also moved by potential technology called DLT (Distributed Ledger Technology). For instance, a private social media giant Facebook announced to launch its cryptocurrency called Libra. And China- one of the largest countries by economy, who first ban cryptocurrency in 2017 is now on the way to create a cryptocurrency.
The air is turning from the rejection of DLT technology to the acceptance of blockchain by governments and private firms. The year 2019 witnessed the adoption of cryptocurrency and blockchain at various levels. Several banks are laying out rules to provide crypto-related services to users.
Warren Buffet Praised Blockchain
However, the current market cap of cryptocurrency is not worth appreciated but its awareness across the world is meaningful. According to many analysts, blockchain has challenged the present money-flow structure. It will subdue the status of fiat currency with digital currency. Recently, Warren Buffet, during a dinner with Tron CEO, also praised the blockchain. He said blockchain has value.
The crypto-related investment firms have seen a boom in 2019 as money in millions invested in digital assets. For example, the crypto investment management firm Grayscale reported that investors ventured almost $600 million. Out of all, 70% of inflow was from institutional investors.
Awareness and adoption of blockchain at large scale are giving a clue of a bright future- for the digital economy. The most striking features that raised distributed ledger technology to peak include decentralization, users’ data on a public ledger, instant transactions, and secure nature.
Governments’ Regulation of Blockchain-based Assets
The interest of governments is very important for the mass adoption of digital currency, including bitcoin. In 2019, the President of China confessed during a meeting that blockchain is necessary for the technology age and there needed proper ways to bring the technology at various government departments. The Central Bank of China also announced to launch its cryptocurrency.
As the involvement of cryptocurrency in illicit activities, some economists criticize it and claim that it is unfit, per the features of a regulated currency. The main challenge to bitcoin, and other virtual coins, is its unregulated nature. Recently, Ripple CEO Brad Garlinghouse said that 2020 is a crypto law year as government are making rules and policies for the crypto’s usage.
The inclination of the institutional investors is good but the interest of governments is great for crypto’s future. Recently, US Treasury secretary claimed that new crypto laws are coming. Similarly, EU has also put forth Anti-Money law to stop illegal activities, related to crypto. The Reserve Bank of India clearly proclaimed that cryptocurrency is not banned in the country but banks are not allowed to provide crypto services.
Aim of Blockchain’s Opponents is Close
The blockchain maximalists, who wanted to see technology in every government institution, should be happy because the days are close in the completion of a journey from the creation of DLT technology to its maturity. Before crypto and blockchain become official entities, rules and regulations by government financial authorities are necessarily important.