So far, 2020 has had a lot of excitement. The rollout of 5G technology is just one more branch on the tree. It may end up being the next best thing in digital network standards since blockchain arrived. It could play a big role in cryptocurrency adoption, too. In most places, 4G is the standard. Read on to learn how the switch to 5G could be a big boon to the acceptance of cryptocurrency around the world.
What 5G Can Do
The 5G network supports calling, texting and internet use. The main problem with it is the cost. All the years of research and development come with a price tag. Delivering and expanding the network could take a while because of the cost. The catch-22 is that people need to experience it to know why it's useful, but they can't experience it if it's not in their area. One industry that could see its fortunes rapidly grow thanks to 5G technology is cryptocurrency.
How 5G Could Boost Cryptocurrency Adoption Across the Globe
Cryptocurrency transactions and mining both require a lot of resources. Users need a lot of power, bandwidth and speed. The 5G network could deliver speeds that are 100 times faster than 4G provides. The reduced latency and lower cost per transaction could be a big turn-on to investors.
This will be a game changer for emerging markets such as Africa and India where cryptocurrency adoption is set to explode. Bitcoin price in India along with P2P trading volume has already seen a massive growth in recent years. Networks for 5G also facilitate more device connectivity, which could cause a revolution in digital wallets, communication and security.
Why 5G Matters to Cryptocurrency's Future
The 5G networks will deliver more than a faster response time and higher capacity. It's designed to support more mobile apps, enterprise applications and video streaming. Websites like YouTube will also rely on it to deliver faster and better service.
The cryptocurrency exchanges are no exception. They're always competing with each other to reduce response times and complete transactions as quickly as possible. Microseconds matter in the world of cryptocurrency. This is especially true given the accelerated speed at which the developing world is adopting mobile phone use and digital currency. These mobile apps supporting the digital economy will get a huge boost in performance and security as 5G networks become the norm in those countries.
How 5G Provides Faster Connections
An average Wi-Fi speed is 50 to 100 Mb/s. 5G can deliver 1 to 2 Gb/s. More data can be exchanged on 5G. That's important when making trades, buying or selling on a high-volume platform. The cryptocurrency wallets will also improve with 5G connectivity. They use a lot of bandwidth and power.
The 5G will allow for better user interfaces and experience with the cryptocurrency wallets. If the interface is pleasing, more people will want to use it. People who are new to cryptocurrency need to do a lot of market watching. A faster connection will allow them to monitor the markets and get real-time results. In addition, those faster speeds let traders buy and sell digital assets quickly and securely.
How 5G Could Enhance Security
Security is a concern in cryptocurrency adoption. The upcoming 5G revolution will offer better security for mobile banking networks. It will also help the verification systems work more consistently on blockchains.
People who don't have access to regular banking services may find it easier to use a digital wallet once 5G rolls out. If they can do what they need to do through their wallet on a 5G connection, they might not have a need for a traditional bank account. All cryptocurrency platforms require a bank account for covering fees, so this will also encourage more people to adopt cryptocurrency.
Nothing is worse than needing to get online from your mobile phone to get a task done but not being able to due to slow speeds of poor connection. 5G promises to revolutionize many aspects of our daily lives, but most importantly the speed at which our mobile internet connections work at. This will continue to be a huge driver for cryptocurrency adoption as many markets use their mobile phone as the primary connection to the internet.