There has long been a debate on what the future of cryptocurrency could be, with there being various different options that could emerge as major players in the future. However, most people believe it will come down to either Bitcoin or Ethereum. They are the modern-day equivalent of VHS and Betamax, or Mp3 and the minidisc.
One of the main concerns surrounding cryptocurrencies is their energy consumption, with Bitcoin famously using more electricity every year than Argentina. Ethereum now appears to have dropped its energy consumption massively, suggesting that it could win over environmentalists and compete with Bitcoin in this regard.
Climate Effect Has Long Been an Issue for Cryptocurrencies
There have been numerous stumbling blocks stopping cryptocurrency from entering the mainstream, but their sustainability has to be up there with the greatest obstacles. Bitcoin and the other tokens it inspired famously require a vast amount of processing power in the mining process, which is done by hi-tech, energy-sapping computers. For these digital currencies to be able to thrive in the future, there needs to be a solution to the amount of electricity they consume.
Ethereum developers have been working on ways to make the offering more environmentally friendly, and a recent update has supposedly reduced its energy consumption by 99 percent. This has been referred to as a game changer for the crypto sector, but the results of it haven’t yet been reflected in the valuation of Ethereum. In fact, the uncertainty around it led many investors to move off Ethereum after the update was released. However, it is expected that this development will allow the cryptocurrency to rally in the future.
Countries Like New Zealand Aiming to Go Cashless
There are a few countries around the world that are heading towards becoming cashless societies, with Norway, Finland, and New Zealand topping the pile. Only two percent of people in these countries opt for cash-based payments now, and in the latter, only one percent of people don’t have a bank.
It’s expected that cryptocurrencies will play a big part in the future of these regions, as they offer a reliable solution to outdated payment methods. With almost everyone now carrying a smartphone, this device acts as a digital wallet that can hold and transfer cryptocurrencies like Ethereum. More people in these forward-thinking countries could get on board with the cryptocurrency now that it appears to be taking its impact on the environment seriously.
Why are Cryptocurrencies Considered the Future of Payments?
Ever since the world moved online, digital forms of payment have risen to the fore and offered internet users a diverse range of methods to perform transactions. In countries that are trying to move away from using cash, these options can also be used in brick-and-mortar establishments.
One of the biggest advantages of cryptocurrency is that it can offer privacy, and this is a crucial factor in thriving online industries. The online casino sector in New Zealand, for instance, is massive, and there are various ways that sites try to set each other apart from their rivals. The ability to use cryptocurrency payments is something that players who use online gambling NZ review sites look for. They aren’t controlled by third parties such as banks or governments, and they offer security and low transfer fees as well. Aside from searching for sites that have great bonuses and reviews, this element of online casinos is becoming increasingly imperative in players’ selection processes.
With the online world being a borderless society, it makes little sense for people to bring their own country’s currencies to this digitalised world. This will be even more pertinent when the metaverse takes off and people start living within it. This virtual reality world will be used for everything from socialising to work, and people will doubtlessly be able to spend money within it. Cryptocurrency could well be the answer to this, and it would mean that everyone could use the same payment system.
Ethereum is still way behind Bitcoin in terms of notoriety, and the original cryptocurrency is the one that many analysts expect to continue leading the market in the future. However, this development for Ethereum could change a lot of people’s perspectives about it. The tide could soon shift to a greater focus on Ethereum payments in the years ahead.