Over the years, human beings have developed different ways to compensate for goods and services. Currency has been a popular choice since the earliest civilizations. While it has proven to be a viable solution in the modern age, the adoption of modern technology has revolutionized payment systems and currency, varying from electronic money transfer, cashless payments, and mobile money. A more recent implementation is cryptocurrency.
According to Thakur& Banik (2018), it refers to an online mode of payment that people can use to purchase goods and services online. Cryptocurrency has monetary value which suggests that an individual need to exchange real currency for cryptocurrency. Bitcoin is the most popular and oldest cryptocurrency dating back to 2009.
While there were previous attempts to establish similar cryptographic payment options, Bitcoin was the first to implement blockchain technology, a decentralized technology that manages and records online transactions. There have been numerous similar currencies since the adoption of Bitcoin such as Ethereum, Ripple, and the recent Dogecoin. Overall, cryptocurrency is an online mode of payment based on blockchain technology.
Over the past ten years, the popularity and value of cryptocurrency has grown tremendously, with some cryptocurrencies growing nearly 10000000 times their initial value. According to Deepika and Kaur (2017), there has been a steady growth of cryptocurrencies in terms of market capitalization and value. The figure below illustrates past and present trends in cryptocurrency between 2018 and 2021. It illustrates a constant growth as more people adopt cryptocurrency as their preferred mode of payment in the age of technology and globalization.