Cryptocurrency has been adopted by many industries and is accepted as a payment method. Crypto is common as a payment method online, with some of the world’s leading companies, such as Microsoft, choosing to accept crypto. However, crypto is not stable and the volatility can affect every business sector.
Why is Crypto Volatile?
Cryptocurrency is purely digital and that means the price is set by supply and demand. That makes crypto different to regular currencies and commodities that have a physical identity, such as cash. There is no government that can set the use of a cryptocurrency in the same way it can a physical currency, such as the use of the dollar in the United States and the pound in the United Kingdom. The value of cryptocurrency is set by the demand for the digital asset and if more people want to buy a specific cryptocurrency, such as Bitcoin for example, the value will go up. However, if many people have decided they no longer want Bitcoin and decide to sell, the value will go down.
The technology is still developing, and cryptocurrency has a long way to go before it completes its full development. Many companies have already adopted the blockchain, but they must be prepared for any changes that could come in the technology which could adjust the way crypto is mined, traded, and used. There are also the possibility governments could become involved in cryptocurrency regulation and that would change the crypto industry massively. The media also have a role to play in the future of crypto and news reports on the mainstream channels across the world have a considerable influence on how people view cryptocurrency. Negative and positive news reports can quickly change the value of cryptocurrency.
Businesses Adopting Crypto
As highlighted above, there are many large businesses adopting cryptocurrency but one of the major industries to first accept crypto was the online casino sector. Not only do many of the regular online casinos now accept crypto as a deposit method but we have witnessed the development of online casinos specifically with crypto in mind. The volatility of cryptocurrency and its impact on online casinos mean there have been both positive and negative aspects to betting online using crypto. By using crypto to gamble online, transactions have become faster and there is greater transparency as all transactions are recorded on the blockchain. However, online casinos and gamblers must always be aware of the changing value of every cryptocurrency they use. As the value of cryptocurrencies change, the amount required to play online casino games and bonus amounts will have to be adjusted to keep up with the market.
Will Crypto Volatility Match Other Assets?
It will be interesting to follow the development of crypto over the next decade to see if it eventually falls into the same pattern of volatility as other assets. The crypto industry will need to reach maturity for that to happen and who knows exactly when that will be. In the meantime, the volatility of crypto will continue to affect every business sector that chooses to adopt cryptocurrency.