It seems that there is a strong comeback for cryptocurrencies, especially with the price of Bitcoin rising to over $103,000, driven by increased institutional interest and positive developments in the market. Here are some key points about the resurgence of cryptocurrencies ¹:
- *Institutional Interest*: Confidence in Bitcoin is increasing among institutional investors, as large companies are buying significant amounts of Bitcoin, which enhances its long-term value.
- *Technological Developments*: AI technology is being integrated with blockchain, opening new horizons for cryptocurrency applications.
- *Practical Uses*: The uses of cryptocurrencies in payments and financial transfers are increasing, especially with lower transaction fees.
- *Government Regulation*: Government efforts to regulate the cryptocurrency market are increasing, which may impact the future of this market.
Among the companies re-entering the cryptocurrency market is Facebook (now known as Meta), which plans to use stablecoins for cross-border payments, especially for creators on its platforms like Instagram and WhatsApp. Meta aims to reduce financial transaction fees by using stablecoins, in collaboration with existing cryptocurrency companies ².
However, there are still significant challenges,
- *High Volatility.
- *Security Risks
- *Government Regulation
