Future of Crypto assets 

27 April 2022| ZebPay Trade-Desk

There is much to be unravelled about the reality of crypto going mainstream as global crypto acceptance continues to grow. For one, the nature of crypto has always been at odds with many of the institutions we associate with the big “mainstream”  players like governments, central banks, and venture capitalists. At the heart of cryptography is decentralization, which also means transparency, immutability, and security. Crypto was built in the wake of an economic crisis with the intention of restoring financial power to people and avoiding total economic dependence on fiat money and central banks. 

Today, the tug of war between regulators and crypto organizations shows that crypto is going mainstream. Regulation isn’t bad, but it’s fascinating to see how centralized institutions are trying to bring a little centralized order to the world of cryptos. As more countries legalize cryptos, and some even try to follow in El Salvador’s footsteps by making cryptos legal tender, it’s clear that cryptos will never take a back seat any time soon. It goes without saying that the future of cryptos is inextricably linked to the future of business, technology, and society in general. At the rate at which things are progressing, analysts are predicting that the crypto market will have tripled in size by 2030, with a valuation of around $5 trillion.

In the future, stocks will likely come in the form of corporate cryptos. In this way, each company can form its own ecosystem in which employees can participate. Using the company’s crypto will also allow companies to bypass fees such as Float costs. It’s still the early days for a company’s crypto. However, as the adoption of cryptos continues to grow, we can expect more and more companies to adopt them.

The world went through a change, especially the way we conduct our business. The shift from cash and in-person transactions to digital cashless payments has brought the convenience of digital payments to many people. It is nothing to be surprised that when digital currency is going to be used as a viable payment option it will continue to evolve more.

Although still in its infancy, major platforms such as PayPal, Visa, and Mastercard have already started allowing customers to buy and transact cryptos through their platforms. PayPal will currently be able to purchase and interact with cryptos corresponding to Bitcoin (BTC), Ether (ETH), Bitcoin money (BCH), and Litecoin (LTC). On the other hand, Visa is facilitating the use of stablecoins based on the Ethereum network. Mastercard conjointly proclaimed the launch of its crypto card in late 2021 and is predicted to support most digital currencies within the coming years. The arguments for and against cryptos as a method of payment are commencing to level out, and businesses are going to embrace them in the near future. In addition, firms will save on dealing fees once they exploit cryptos as a method of payment.

The pandemic has changed the way many of us do business. The shift from cash and in-person interactions to digital cashless payments has brought the convenience of digital payments to many people. It’s no surprise, then, that cryptos are gaining traction as a viable payment option.

In times of crisis, debt is usually seen as a necessary evil. Debt will give short relief and facilitate businesses to keep afloat through turbulent times. Currently, some platforms enable corporations to lift debt through localized finance. These platforms are Dharma, dYdX, and Compound. Debt generated on these platforms is often used as assets or to hide operational expenses. Because interest rates on these loans are less than those offered by lenders, businesses can save wealth on these loans. Defi loaning is probably going to become even an additional standard within the coming years as companies explore ways to bounce back from the pandemic. Simple use and competitive interest rates make Defi loaning a viable choice for businesses wanting to borrow money.

Many startups are already operating to change banking for the unbanked through cryptos, particularly in countries with unstable economies. Kotani Pay and Leaf are examples of platforms that give access to essential monetary services for the unbanked in Africa. Cryptos can be used to send and receive money, pay money for products and services, and more. They conjointly supply security and privacy that banking systems cannot. In the future, it’s expected that additional platforms will be able to give essential monetary services in developing countries and war zones through crypto.

For firms which operate across countries, Crypto is a boon. First, cryptos are borderless, which means that crypto can be used to pay workers around the world. Second, they’re secure and irreversible, reducing the danger of fraud. Finally, crypto may regenerate into native currencies, making them convenient for employees eager to use them for everyday transactions. As many corporations adopt these payment methods, the use of cryptos as worker compensation will most likely increase.

Disclaimer: This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation, or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness, or reliability of the information, opinions, or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading & Investments in cryptos viz. Bitcoin, Bitcoin Cash, Ethereum, etc. are very speculative and are subject to market risks. The analysis by the Author is for informational purposes only and should not be treated as investment advice.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The views, thoughts, and opinions expressed in the article belong solely to the author, and not to ZebPay or the author’s employer or other groups or individuals. ZebPay shall not be held liable for any acts or omissions, or losses incurred by the investors. ZebPay has not received any compensation in cash or kind for the above article and the article is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.

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