Cryptocurrency boomed in 2021.
According to the cryptocurrency exchange platform Coinbase, the market grew by more than 250% annually as of Dec. 15. Long known for the leading currency Bitcoin, the market has diversified into more than 11,500 coins with various functions and uses.
While many investors see great potential in cryptocurrency, questions still surround the market, from its complexity to its volatility and lack of regulation. And while it has yet to take off as a mainstream form of currency, both in Arkansas and beyond, some authorities and investors see great potential for it moving forward.
‘THE DIGITAL CURRENCY OF THE INTERNET’
Cryptocurrencies — which belong to a broader group of assets utilizing blockchain technology known as crypto assets — are digital tokens exchanged via blockchain. This distributed database acts as a complex virtual ledger that can quickly and efficiently verify ownership of an asset while also ensuring secure and decentralized transactions.
“Cryptoassets were designed to be an online way to get around all the expenses of banks; completely peer to peer, no middleman, no banks, no government, no oversight, no fees, no delays,” said Carol Goforth, a law professor at the University of Arkansas who has become a leading scholar on the regulation of crypto assets. “It was designed originally to be a substitute for currency, where the government knows everything you’re doing.”
“It’s the digital currency of the internet,” said Chad Yoes of Bentonville, general partner at Centurion Crypto Fund 1.0, a digital currency fund that simplifies and provides easy access to crypto investing for accredited clients. “It’s a very complex market, and there are a lot of nuances with it.”
Cryptocurrencies and crypto assets serve a wide variety of uses, from currencies specifically for use in video games to broader utilization of blockchain technology that can monitor and provide transparency in areas such as…
