Currencies of the future – what opportunities do consumers have?

The currencies of the future are mainly crypto currencies. Above all, they are perceived today as an option to invest their money and hope for value gains. But the idea behind currencies like Bitcoin or Litecoin was to first use them as a means of digital payment. However, this requires a degree of confidence on the part of all market players. This is only if all participants accept new currencies as such that a new payment method can result. In what follows, we want to show what cryptocurrencies can do today and what possibilities might arise in the future.

Cryptocurrencies – hype or means of payment?

In the future, money will circulate only virtually. At least some enthusiasts have this idea and rely on the spread of digital currencies. For the first time in 2017, many consumers may have become aware of cryptocurrencies. They became stars most of the night – especially Bitcoin (BTC). Its concept is based on an idea to divert money from the power of central banks, avoid inflation (currency devaluation) and make the currency unfalsifiable.

Although crypto-currencies have created a craze, many consumers do not understand behind it. It consists essentially of a new currency that is detached from the constraints of previously known monetary systems [19659909] Decentralization

After the Crypto Coins Reveal in 2017 they became explosive increased. Insider portals now have more than 1,400 coins – and the trend is on the rise. The result is a broad interest in digital currency, mainly due to the rapid rise in stock prices. In a few months, the value has increased fivefold. The best example of this is Bitcoin. The price fluctuations in a short time are enormous. So far, digital currencies are therefore more targeted as an investment object, means of payment

Cryptocurrencies are not a regular means of payment

Development at the turn of the century. the year 2017/2018 also reveals a weakness of crypto currencies. They do not have intrinsic value. The cost of crypto-currencies depends solely on the confidence that "investors" have in currencies. In mid-July 2018, BTC returns to just over 6,000 euros, about half of its value at the beginning of the year.

To impose long-term and become a means of payment, digital currencies must overcome a significant obstacle, Until now, they are not a regular form of payment. It is only thanks to the trust placed in the individual pieces that it is possible to "trade" through specific real currency trading platforms. One of the challenges is the way cryptocurrencies are created in practice.

The problem: the recognition of market participants

The original idea of ​​using digital currencies to pay on the Internet is still today only implemented at small ladder. Only a few service providers and merchants accept crypto currency as a virtual payment method. Although few people use e-money, it is difficult to spread them further.

Although the situation regarding the acceptance of cryptocurrencies like bitcoin has already improved considerably, too few participants still recognize it as a means of payment. In addition, consumers remain skeptical about new currencies. According to a Civey 2017 survey, three quarters of consumers still believe that they will no longer rely on cryptocurrency in the future.

Pay with Cryptocurrencies – Portfolio instead of Giraffe in the future?

Payment by cryptocurrency is by far the most expensive Construction is very simple. Normally, coins (bitcoins or other cryptocurrencies) are in a wallet that displays the balance. If a merchant now accepts cryptocurrency as a means of payment, the buyer of a product or service initiates a transfer of his wallet to the merchant's purse.

Especially with blockchain cryptocourses, a transfer can take a long time. Security is always transmitted the complete blockchain. Meanwhile, there are also plastic cards with chip that can be used to charge a crypto-credit like in the case of a credit or debit card and spend accordingly.

However, cryptocurrencies can speed up payments in the international space. Instead of several days until the money is credited to a bank abroad, the beneficiary can then dispose of the amount in a few hours.

New developments in the payment of cryptocurrencies

Payments in the future will be very high cashless payments. An aspect that leads today to a clearly defined agenda in some countries, to remove the money in its current form. A good example of this is – at the European level – Sweden. In the Scandinavian country, the promotion of cashless payment is a stated goal. But the problems badociated with it are also becoming apparent in Sweden. It threatens the danger of pushing non-technical groups to the margins.

Development is certainly influenced by the increasing spread of machine-to-machine communication. The IOT (Internet of Things) requires a quick exchange of command and resources. Here, the transfer or confirmation with tokens (in the form of a cryptocurrency) is most likely the future. A similar example already exists with the IOTA cryptocurrency.

Investing in cryptocurrency – even with possible ETFs

There are now several ways to invest in cryptocurrency:

• Currency Purchase: Very common Today, the direct purchase of the respective currency is always done. It works across different cryptographic markets, which like trades offer the respective currencies at the current rate. However, it is sometimes impossible to buy more unusual currencies directly in euros or dollars, but the investor must first exchange euros in Bitcoin and can only use this detour to buy another cryptocurrency.
• CFDs: Investment opportunity established. Financial derivatives can be exploited to provide very lucrative returns, but they also carry a huge risk of loss.
• Futures: Since December 2017, Bitcoin futures can also be traded on the Chicago Stock Exchange. According to the experts, however, they should have made a significant contribution to the price crash, as many professional investors have lowered prices.

Of course, the question arises as to whether exchange-traded funds can also exist in the field of cryptocurrencies. A corresponding index has been launched, for example, by LIMEYARD. The LIMYYARD Crypto Asset Index (LYCAI) contains 20 different crypto currencies with different weights. All heavy goods vehicles in this field are included, such as:

• Bitcoin
• Ethereum
• Ripple
• Bitcoin-Cash
• EOS
• Litecoin
• IOTA

Financing Conceivable Products . In contrast, pure Bitcoin ETFs are still being fought in the United States. In a first attempt, these were not approved. But on August 10, 2018, a new attempt is made because then the SEC again decides on the approval of Bitcoin ETF.

Conclusion: Reimbursing Money

How long will there be money? Not only do insiders or central bankers ask themselves this question. The debate over cash transactions and payment without banknotes or coins has meanwhile also reached the center of society. While some voices emphasize the benefits, the critics point out the obstacles and disadvantages. Nobody would ultimately want complete control of the state on all payments made.

Cryptocurrencies could solve some of the problems that traditional currencies have brought with them. Thanks to encryption, it's quite possible to disguise your own payments against unwanted glances. With the right technical implementation, crypto-currencies also offer other advantages, because they are relatively unfalsifiable and controlled in a decentralized way, which prevents manipulations.

Currently, however, cryptocurrencies are not yet accepted as a means of payment. Too few market participants place their trust in this type of payment. In contrast, crypto-currencies have already made history as investments. The emergence of ETFs in this area could once again give a much stronger overall momentum.