Cryptocurrencies have proven to be a safe way for exchange and to be technologically robust. Moreover, due to its ease of adoption, bullish sentiment, incoming new investors, and achieved growth, major cryptocurrencies have turned out to be inflation-resilient storage of value.

However, fiat currencies still have absolute dominance as a traditional means of exchange, mainly due to people's habits, legal obligations of usage, diminished volatility, and government securities. And, fiat currencies are also undergoing improvements: electronic payments are becoming easier, international transfers cheaper, and banks safer – solving their own problems in the first place.

The battle continues, and challenges for cryptocurrencies are still there; let’s explore:

💰 Investment

Cryptocurrency prices are mainly speculative and sentiment-driven. Complicating things, it is challenging to determine fair prices, resulting in volatility and higher risk. But, for those with less financial literacy or skeptical of traditional investment assets, these are and will be sound alternatives.

👁️‍🗨️ Security

Technological robustness and transparency in transactions have been proven. But, as it comes to investors, they are still vulnerable to hacks, fraud, and scams.

💚 Freedom

Cryptocurrencies already provided financial independence to many. For example, thanks to crypto assets, many Russians managed to escape war. However, legal jurisdiction remains: main crypto exchanges comply with international standards, and regulations for crypto tokens are underway.

🛩️ Innovation

Blockchain technology, decentralized finance (DeFi) and Web3 platforms hold promise for various industries. However, their impact is still not realized until mainstream adoption happens. Many new startups do not put enough emphasis on solving problems by leveraging this technology.

🎎 Social Benefit

The crypto world has fostered a vibrant and open culture. The rise of non-fungible tokens (NFTs) credited new art – and that’s great. However, new AI advancements seem to dilute the achievement. Additionally, the energy-intensive cryptocurrency mining raises concerns about the environment and access to high-energy goods like electric cars and house heating.

💸 Financial Inclusion

Limited supply, early entry advantage, and speculations create huge inequality in token ownership. This phenomenon fuels the already disproportionate distribution of wealth worldwide. Moreover, crypto as a liability is still limited in the modern banking system and doesn’t improve ones credit.

🏦 Economic Growth

Cryptocurrencies can contribute to market circulation but still do so in a limited way. Unlike traditional investments in stocks and bonds, the buyer of crypto has no impact on where the value goes. Furthermore, the potential adoption of decentralized currency limits quantitative easing in a crisis, highlighting potential systemic risks.

Cryptocurrencies have proven their value but do not solve all problems yet and may bring new ones. Some achievements are here and will stay with us, while others are yet to come. However, with so many enthusiasts in the field, these obstacles can be overtaken someday.