People began to participate in the investment and use of cryptocurrencies.

5. Central Bank Digital Currency (CBDC)

• The rise of CBDC: Central banks of various countries have been researching and testing their own digital currencies. China's digital RMB project has entered the practical stage, and the European Central Bank and the Federal Reserve are also actively exploring this field. CBDC may have a profound impact on the existing cryptocurrency market.

• Competition and coexistence with cryptocurrencies: The launch of CBDC may pose a challenge to private cryptocurrencies, but it may also promote the expansion and formalization of the entire digital currency market.

6. Environmental and energy issues

• Energy consumption controversy: Cryptocurrency mining activities represented by Bitcoin have been criticized for their high energy consumption, especially in the context of the global promotion of green energy and sustainable development.

• Exploration of green cryptocurrencies: Some cryptocurrency projects, such as Ethereum 2.0 and Chia, are exploring more environmentally friendly consensus mechanisms, such as Proof of Stake (PoS) and Proof of Space (PoC) to reduce energy consumption.

7. Hacker attacks and security

• Cybersecurity challenges: Cryptocurrency exchanges and wallets are still the main targets of cyber attacks, resulting in a large amount of asset losses. This reminds people to strengthen security protection measures for cryptocurrency assets.

• Advances in security technology: Security technologies such as multi-signature, hardware wallets, and cold storage are becoming increasingly popular, improving the security of cryptocurrency holders’ assets.

8. Future Outlook

• Integration and innovation: With the integration of blockchain and other emerging technologies (such as the Internet of Things, artificial intelligence, etc.), the future application of cryptocurrency will be more diversified.

• Changes in the global financial system: Cryptocurrency and blockchain technology have the potential to have a profound impact on the traditional financial system and promote the decentralization and inclusive development of finance.

In general, the global cryptocurrency market is in a stage of rapid development and change. Despite many challenges, its influence and application scenarios are constantly expanding. In the future, cryptocurrency and blockchain technology will continue to play an important role in the global economy.