The cryptocurrency market has been generally regarded as in a slump as of last month, as FTX was outed as being an insolvent exchange. This fallout aside, there’s still hope for the future of crypto. In fact, many experts are calling 2023 the next crypto boom thanks to the promise of iGaming with bitcoin games, self-custody cryptocurrency, and other developments that show the future of DeFi and crypto, in general, may be brighter than ever before. Here’s what you need to know about how crypto will transform the future of business through self-custody cryptocurrency and why there is light at the end of the tunnel.
Crypto offers a way for people to take back control of their finances. The general public sees cryptocurrency as the medium to a more fair financial system. More decentralized than traditional institutions, crypto offers the public increased privacy, security, and accessibility. Even though the general consensus seems to be that crypto needs more regulation, the innovations brought by DeFi are viewed with hope by unbanked people who seek to access the global financial system and take control of their assets.
The subject of crypto mass adoption shouldn't be thought of in terms of “if it's going to happen,” but “when is it going to happen.” Presently, crypto adoption is on the rise. The top five cryptocurrencies are ranked in order as follows: Bitcoin (BTC) - Ethereum (ETH) - Tether (USDT) - 8%, Binance (BNB), and USD Coin (USDC). Many other cryptocurrencies and tokens have been minted, and even though some have crashed and fallen, the well-known crypto coin giants continue to put a fight to the latest financial crisis.
The main appeal of blockchain technology in currencies has to do with the lower costs of infrastructure maintenance. A physical banking system involves buildings, wages, and, in some cases, governmental dependencies. The crypto financial system has no geopolitical barriers or physical ties. When it comes to economic trends, developing countries will benefit the most from increasing digital trade. Not to mention, decentralization through blockchain technology, and reduced dependence on third parties that often operate in corrupt economies. Blockchain technology has the potential to revolutionize the way we manage data, money, and government oversight. All while reducing corruption due to transparent records that can be audited at any time.
The decentralized nature of NFTs can be instrumental in a wide variety of financial scenarios. For example, NFTs are valuable assets, so they could be used as collateral for loans. This means that companies or individuals can borrow money and use their crypto assets as collateral in case they default on the loan. In addition, being based on blockchain technology, NFTs can enable secure transactions without revealing sensitive information.
This creates a system of trust where you know who you’re dealing with financially. This is essential when handling large sums of money. Another use businesses can give to NFTs is to guarantee the uniqueness of an item and avoid fraudulent commercialization. For instance, NFTs can dodge the issue of ticket falsification in entertainment events. This can stop duplication of sales by acting as proof of ownership.
The latest failure of FTX had to do with human incompetence. It had nothing to do with a flaw in blockchain systems. This traumatic financial event is a clear argument on how self-custody cryptocurrency, which minimizes the need for intermediaries, can help keep crypto investors secure. Thus, reducing losses and avoiding the need to trust centralized corporate systems. Trusting centralized systems is a significant issue. Especially, because exchanges are not immune to hacks, corruption, or human errors. In fact, a considerable amount of cryptocurrency exchanges have been hacked and lost millions of dollars in funds.
This is an unnecessary risk for any investor who wants to maintain ownership and control over their crypto funds. A hardware security wallet is the best way to keep your crypto safe. These wallets are an offline form of storage that ensures your private keys' safety. This makes it impossible for hackers to get into your account and steal your crypto assets. Plus, if you’ve ever accidentally sent a cryptocurrency to the wrong address, hardware wallets allow you to claim it back. That is if you can enter the correct password.