Cryptocurrency continues to be a buzzword for the last few years but its popularity tremendously in the last 2-3 years. Earlier, crypto investment was solely considered as an alternative investment opportunity. Now, it is being treated as a viable investment portfolio even in retirement plans. Here, we will discuss the growth of cryptocurrency and blockchain solutions.
Cryptocurrency has grown into a mainstream investment asset class. For many buyers, the main craze of crypto is to invest in an innovative digital asset. Some people buy crypto for short-term speculation. Others own crypto as a kind of diversification in their investment portfolio moving away from traditional assets such as shares, bonds, or property. Currently, cryptocurrency is unregulated and people don’t know where and how to start, and investing in it can be difficult at times.
There is a popular phrase in the crypto community that is ‘do your own research’, which means you need to understand what you are buying and will you regulate it. People must be aware of the scams and risks involved with cryptocurrency investment. You should be prepared to lose all the money that you have invested. There are crypto assets that appeal to investors based on the ethos of the developers and the use case for the token itself.
Why there is a growth of cryptocurrency?
The cryptocurrency market is witnessing a steady increase in market value because of the consumer protection provided by blockchain technology. For this reason, the cryptocurrency market will remain strong regardless of volatile market conditions. Blockchain technology is playing a major role in protecting consumers.
The global cryptocurrency market size was $4.57 billion in 2022 and is expected to rise at a rate of 12.5% to touch $13.18 billion by 2030. The global cryptocurrency market cap is pegged at $1.23 Trillion. Cryptocurrencies or virtual currencies exist in a digital form and have no regulatory authority.
Cryptocurrencies use distributed ledger technology such as blockchain to validate transactions. Increasing adoption of distributed ledger technology is expected to drive the growth of the cryptocurrency market in the coming years. In addition to that, cryptocurrencies are increasingly being used for cross-border remittances which would drive market expansion because of low consumer and exchange fees.
Recent Developments in the Crypto Industry and the Impact of AI
Recent developments in artificial intelligence (AI) may have a huge impact on the cryptocurrency market. The growing popularity of AI-based cryptocurrency platforms is guiding several companies to focus on AI technology development. The major factor that is driving the growth of cryptocurrency or digital currency is that an increasing number of businesses are accepting cryptocurrency as a formal payment method. In addition, the adoption of digital currency by major corporations globally is expected to drive the expansion of the industry.
Government agencies around the world are focusing on drafting legislation to regulate cryptocurrencies. Cryptocurrencies like Bitcoin are gaining attention in countries with high inflation. Regulators around the world are concerned about the use of cryptocurrencies for illegal purposes, which is a significant obstacle to market expansion.
How can Blockchain & Crypto influence HR?
Human resource management involves handling and looking after a lot of very sensitive personalized and financial data. The human resources department can receive and store information related to payroll, health insurance, banking and finance, disciplinary records, etc. All of these run the risk of being taken advantage of.
With blockchain, the possibility of criminals accessing this data is reduced. In many cases, it will be non-existent. Since records are stored on a decentralized blockchain, there is nowhere hackers can access the data and damage it. In addition, any changes to the data can only be done after getting authorized and verified.
The blockchain-enabled distributed ledger can be used to verify candidate employment data. Other information may be added to blocks for administrative purposes related to compensation and benefits, for example. Blockchain can help with reporting, auditing, and HR compliance processes. In addition, reporting is made easy because HR staff will have to pull the relevant data from a general ledger or database and then there’s no need to tediously verify that data, and same time can be used for them to improve efficiency.
Web3.0 and Blockchain
Web 3.0 is regarded as the future version of the Internet. It is based on public blockchains which is a record-keeping system, known to be supporting cryptocurrency transactions. Web 3.0 will ensure the generation of new applications and services based on blockchain technology which would be actively used today. These include non-fungible tokens (NFTs) which are a unique type of crypto-asset used to create and validate ownership of digital assets.
Blockchain is a new system for creating consensus among network participants without government permission. On the other hand, Web3 is the decentralized web where applications, online services, and finance no longer need centralized authority. Cryptocurrencies and blockchains are known as the building blocks of Web3. However, the decentralized web is also based on technologies such as AR, VR, IoT, and others that do not involve blockchains or digital currencies. Web3 is the 3rd generation of the Internet based on blockchain technology.
Rise of Blockchain and the Metaverse
Web 2.0 has turned the Internet into a more social experience. Social networking sites and blogs have opened up new modes of communication for digitally savvy consumers. However, centralization is still essential for the online experience. Adopting the blockchain infrastructure has allowed metaverse users to get connected with the broader crypto economy which makes virtual items exchangeable for real money. Blockchain technology allows Bitcoin and other cryptocurrencies to buy and sell virtual assets in metadata.
Cryptocurrency metadata is an immersive virtual world with enormous financial and social potential. The use of blockchain infrastructure has allowed them to participate in the broader crypto economy which makes virtual items exchangeable for real economic value beyond the confines of the data. NFTs (non-fungible tokens) play an important role in metadata by providing a unique way of representing digital assets, such as virtual real estate, game items, and merchandise, collectibles, on a blockchain.
Cryptocurrencies will power the metaverse, so if it flourishes, crypto will likely gain more acceptance. At least one tech giant is counting on that success, as Mark Zuckerberg’s Facebook has renamed its company to Meta Platforms. Custom blockchain solutions offer a wide range of applications that will ultimately change the way almost any industry operates. However, for now, its applications are limited as only companies understand the importance of this tool now.