5G and Blockchain: Paving Way For Crypto Mining

In 2020, the world witnessed bitcoin breach unprecedented levels. The cryptocurrency crossed US$ 23000 for the first time in history in a dizzyingly rally on December 17. Ethereum, the second-largest cryptocurrency that often moves in tandem with bitcoin, also peaked at US$ 660+.

Calendar 2020 is also the year when Canadians witnessed the mainstream rollout of fifth generation (5G) cellular tech. Top telecom firms such as Rogers, Bell, Telus have already launched 5G networks and more operators are likely to announce coverage next year.

At this critical juncture, many market analysts believe 5G will drive cryptocurrency and blockchain mining.

But how will this transpire?

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5G and Blockchain

The rise of 5G – a faster and more reliable technology – will aid the rise of Internet of Things devices, artificial intelligence and interconnected digital exchange and interaction.

On the front end, users with 5G will see unprecedented speeds (of over 1Gbps), huge data benefits and swift mobile banking services. But as IoT devices proliferate the market, a complex system of networking will emerge.

So, at the back end, blockchain will secure these data transactions at a granular level. In other words, blockchain will complement 5G through robust cybersecurity systems, decentralizing powers (reduced fee burdens), and set transparent networks.

Blockchain and 5G together will pave the way for the cryptocurrency mining, which promises to be faster, transparent and unique to each user.

However, this utopian proposition still faces a host of challenges including the legality, technical updates, interoperability, and scalability. Once these technologies are properly integrated, it will form the building blocks of the shared global economy.

The Rise of Digital Currencies

In 2020, mainstream acceptance of digital currencies accelerated due to the pandemic and the necessity of social distancing. Physical cash is getting sidelined and central banks are now realizing the importance of digital currencies.

Just look at the numbers. One in three Canadians used cash in 2019. With the pandemic, Canadians pretty much gave on using cash.

As the interest in crypto boomed amid the pandemic, more traders hedge their bets on the mysterious currencies.

Large national and private entities, including financial institutions, took note.

Bank of Canada deputy governor Timothy Lane admitted that there is indeed a need for digital currency. The central bank is now brainstorming on central bank digital currency (CBDC), amid the rising popularity of cryptocurrencies such as bitcoin.

America bank JPMorgan Chase is already processing crypto transactions on its platforms and intends to launch its own digital currency JPM Coin. Online payments giant PayPal will also facilitate the acceptance of bitcoin on its platform for the ease of merchants from next year.

Once circulating among tech geeks, gamers and coders, crypto has seeped into a day-traders’ psyche. Common public too want a piece of this.

The craze of this alternative currency will only be accelerated with largescale penetration of 5G connection.