Table of Contents
I want to start by clarifying exactly what cryptocurrencies are…
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Now that you understand the basics, let‘s dig deeper into adoption trends so you can fully appreciate how quickly crypto is moving into the mainstream…
Cryptocurrency Goes Mainstream
Cryptocurrency may still seem technical or obscure. But adoption is accelerating faster than anyone imagined. Get a sense of the scale:
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221 million people globally now own cryptocurrency as of June 2022 based on TripleA estimates, up from 66 million in May 2020.
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Cryptocurrency ownership rates among US adults has tripled from 1.3% in 2018 to 6.6% as of 2021 according to Pew Research Center data.
And corporations and institutional investors are now piling in as well:
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As of Q2 2022, 16% of financial advisors had some exposure to cryptocurrency in their client portfolios according to CNBC.
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Fidelity Investments, the 4th largest investment firm globally, now allows retirement account holders to allocate up to 20% of their portfolios to Bitcoin based on Forbes reporting.
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Major companies like Tesla, Block (Square), MicroStrategy and PayPal all hold at least hundreds of millions worth of crypto assets on their balance sheets.
As you can see, crypto is rapidly permeating into mainstream finance and technology. Now let‘s cover some best practices to keep your cryptocurrency investments secure…
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While hackers and scammers do exist, don‘t let security worries turn you off from cryptocurrency. Just use cautious common sense like you would with any valuable assets…
Moving on, DeFi and Web3 innovations build on crypto to reshape finance and internet services – here‘s a quick look at what the buzz is all about…
DeFi and Web3 Promise a Decentralized Future
DeFi stands for "decentralized finance", while Web3 envisions a new iteration of internet services powered by blockchain and cryptocurrency tech.
DeFi aims to recreate traditional financial products without centralized intermediaries:
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As of January 2022, over $250 billion in crypto assets were locked into DeFi protocols according to DeFi Llama data.
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DeFi applications support borrowing, lending, derivatives, insurance, decentralized exchanges and more.
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For example, MakerDAO lets users take collateralized loans governed by smart contracts on the Ethereum blockchain instead of a bank.
Web3 focuses on decentralizing internet services including social media, cloud computing, storage, machine learning and entertainment/media.
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Web3 can integrate cryptocurrency payments, NFT digital goods and metaverse virtual worlds.
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Leading crypto exchange FTX recently raised $400 million from investors like Softbank to build Web3 social media platforms.
As you can see, things are just getting started when it comes to disruptive blockchain applications…
Now, let‘s wrap things up with my take on where we‘re headed in the future so you know what trends to watch for.
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I hope walking through the key pieces gives you a balanced perspective on the risks and revolutionary potential of cryptocurrency and blockchain technology. This space still has a long way to go in replacing current financial and internet infrastructure. But based on the staggering innovation and adoption momentum so far, I think it‘s safe to say crypto is here to stay!
Let me know if you have any other questions – I‘m always happy to chat more about this game-changing topic!