So you have a stately virtual wallet in your crypto account. You need to consider whether to keep them or exchange them for digital banknotes. Since the digital yuan will soon be available overseas, there is a good chance that you can secure some electronic money as well. Nevertheless, for these reasons, you can stick with your cryptocurrencies. One safe trading platform that you can visit is the Yuan Pay app.
Same good old money
For all the hype about digital currencies, it’s worth noting that they are nothing more than the digital version of your cash. The type, value and properties would remain the same except for the shape. For this reason, the existence of cryptocurrencies would be practically unaffected by the development of money.
For example, the digital dollar will only be the digital form of the US dollar. Instead of the printed version, it is only reproduced virtually. Nothing else will change, except the appearance or, in particular, the lack of its physical characteristics. Instead, it will take the form of digital money created by online ledgers.
Still, the value of digital banknotes would be proportional to the value of money, if not its full equivalent. It would still follow the Bretton Woods monetary system. This means that the value of your digital banknotes is determined by the state. It is regulated in such a way that the local economy is stabilized. Likewise, prices will depend on how the state determines the value of its legal tender.
What would the commonality between digital banknotes and cryptocurrencies be? Both share the digital form. Apart from the form, there is nothing left to share. The big difference would show when it comes to financial security and risk.
Digital notes are not direct competitors
While states are hoping to catch up with the rise of digital currencies, there is no direct rivalry between digital banknotes and cryptocurrencies. These two digital assets belong to two different markets. The first is under government control while the other is good in itself. In fact, both are indirect competitors as far as the target market is concerned.
Direct competitors of cryptocurrencies are the players in the crypto market. Only if a state wants to establish a monopoly on virtual coins in crypto trading platforms is it likely that it will not ban these digital assets locally. The neutrality policy regarding the crypto coins has long been followed by most of the countries except China. It is not surprising why the digital yuan is the only digital coin there.
The target market for digital banknotes is far removed from the typical crypto market. It would likely be made up of investors who are into highly secure and less risky investments. This does not fit the profile of crypto investors who rely on less secure and high risk digital assets. There is no doubt that these assets belong to two different worlds. In fact, they are unlikely to be played off against each other.
Given the high risk environment, crypto investors can be seen as exceptional trailblazers. They have made themselves familiar with the risk factor of being able to fairly assess their chances of getting adequate returns. These investors are not only risk takers but also specialists in risk diversification. And they wouldn’t settle for anything less than the excitement of experiencing the roller coaster ride. Even so, this game is not for everyone.
Crypto has an independent area
Remember that the crypto market exists on its terms with its reality. For this reason, crypto-coins are independent of external interference. For many years the government has managed to keep its distance by adhering to the policy of neutrality. The only time it would care about crypto operations is when there are incidents of fraudulent activity. Still, it has a mandate to protect its nationals from cyber threats and attacks.
The crypto market flourished for a long time without government intervention. Only when there are cases of fraud and cybercrime does the state enter the crypto world. This has been seen several times when there were crypto raids against innocent investors. Consequently, the crypto market welcomes this type of interference.
Once the fuss is resolved, the crypto market would be left to its own devices. Lessons were learned after the series of cyber attacks. Crypto players have taken self-regulatory measures to protect the stakeholders.
The only condition for cryptocurrencies to thrive is people’s trust. As long as subscribers keep the blockchain alive, the market is expected to remain active. Because of this, you can be sure that your crypto coins will remain relevant. There’s a good chance this digital asset will stay in its ever-expanding universe forever.
The crypto market has even more to offer
There may have been a new advancement in digital note taking, but the crypto world is unlikely to be left behind. You might want to check out the ambitious plans of some leading cryptocurrencies. Bitcoin will be releasing its latest update shortly after its press release earlier this year. Ethereum with its ether coins recently underwent a first upgrade. And Cardano has been closely following its roadmap, which will span several years.
With many other cryptocurrencies on the market, there will likely be a steady flow of innovation to keep up with the fast moving environment. The three market leaders have already set the bar high for other players who want to join the club. There is an opportunity for new crypto coins to introduce something different, if not better, than the traditional crypto features and functions. All of this is intended to increase interest in the crypto market.
There are also challenges that constantly present opportunities. The way to search for green solutions for crypto operations is still pending. Ethereum is now at the forefront of finding ways to minimize, if not eliminate, CO2 emissions.
These are just some of the reasons why cryptocurrencies will endure a new monetary development. After all, digital notes would just offer a new form of money. These are likely not the direct competitors of crypto coins as they know the latter have their market. Above all, the crypto market will always be a home for innovations. Also, don’t forget that there is risk in the market, which is why you should invest with caution.