Will Crypto Mainstream soon??
Cryptocurrencies are not a new phenomenon. But over the past decade, they’ve been inching deeper into the financial mainstream. With more blockchain applications emerging and regulatory bodies beginning to engage, crypto may finally be approaching center stage.
Whereas Bitcoin was once associated with shady transactions on the dark web, it’s now accepted by major retailers. Websites like Expedia and Microsoft accept Bitcoin as payment. In a landmark move, El Salvador became the first country to adopt Bitcoin as legal currency in 2021. While President Nayib Bukele made headlines for championing the move, he’s also been scrutinized as Bitcoin’s value has dropped significantly since then.
In addition to the wider acceptance of Bitcoin, newer cryptocurrencies like Ethereum (ETH) are also gaining traction. Ethereum supports smart contracts and a robust blockchain network. Meanwhile, Dogecoin (DOGE), which started as a joke, became a pop culture phenomenon in 2021. As investors gain more confidence that these cryptocurrencies are here to stay, they’re increasingly open to exploring the market.
Blockchain and NFTs
Another emerging phenomenon that has contributed to broader crypto acceptance is the rise of NFTs (non-fungible tokens). We’ve discussed NFTs in depth on our blog, but here’s a quick recap: unlike cryptocurrencies, which are fungible (interchangeable), NFTs are unique digital tokens.
NFTs are currently disrupting the art world by establishing ownership over digital creative assets. But their potential stretches far beyond. In the near future, NFTs may serve as proof of ownership for event tickets, digital or physical property titles, and more.
As crypto and blockchain applications become more visible, public curiosity grows. Exchanges have made cryptocurrencies more accessible, encouraging new users to hop on board—often because they’ve simply heard more people talking about it. This creates a snowball effect: more users lead to more awareness, and more awareness invites more users.
Trust, Bias, and Investor Behavior
Still, comfort with crypto varies widely. An investor’s willingness to trust a new system is often less about logic and more about personality. For many, their first introduction to Bitcoin or NFTs is through a friend or social media. If they trust the messenger, they may be more likely to engage.
Other factors also influence adoption: the quality of the platform, risk perception, expected returns, and even an investor’s socioeconomic background. Ideological values play a role, too. Many view blockchain technology as a means to decentralize traditional institutions or as a way to build more democratic financial systems.
We’ve already seen this on a global scale. El Salvador has embraced Bitcoin, while the European Investment Bank (EIB) has begun experimenting with blockchain bonds. Institutions are exploring crypto applications more seriously, and regulatory bodies—from the European Council to U.S. lawmakers—are crafting legislation aimed at bringing crypto into a formal framework. Regulation may ultimately increase public trust and accelerate crypto's acceptance.
Due Diligence Still Matters
As with any investment, due diligence is critical. Before diving into any crypto-related asset, it’s essential to check your own cognitive and emotional investing biases and understand your risk tolerance. Don’t fall for the hype or take financial cues from your most crypto-obsessed friend without doing your homework.
If you have questions about crypto, NFTs, or any other investment opportunities, reach out at info@nestfinancial.net. We’re always eager to help Austin locals and newcomers alike make the most of their hard-earned money through our innovative investment process.
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DISCLAIMER: We are legally obligated to remind you that the information and opinions shared in this article are for educational purposes only and do not constitute financial planning or investment advice. For guidance about your unique goals, drop us a line at info@nestfinancial.net.