Cryptocurrencies continue to attract the attention of many in different industries. Both investors and entrepreneurs have an interest in this vast currency market. Also, the fact that the industry is decentralized most regulators have developed an interest to ensure consumers are protected in different regions that accept crypto transactions.
But what are the statistics of these digital currencies and their impact on the financial market? Well, we have discussed that and more in this article. Also, we can give credit to Cryptogamble.tips for information on this topic and more about the crypto gambling world.
How the cryptocurrency has affected the financial market
In 2020 it was estimated that the global cryptocurrency market size was over $820 million. As the Covid-19 pandemic hit the world, the digital currency market saw a surge in the value of different coins. For example, the value of Dogecoin really rose in 2021 after Elon Musk promoted it online.
Cryptocurrencies have introduced a new way for users to transact online. The fact that the market is decentralized, users can conveniently buy and sell goods/services anonymously. Thus the increase of user accounts for these currencies. For example, crypto exchange sites like Binance have over 28.5 million registered accounts.
Governing body’s response
The digital currency is decentralized. This means there is no central governing body controlling how the values of the coins behave. So, it’s hard for banks and other bodies to control the market. This is the most common issue in several countries. In fact, some countries like Vietnam, China, Qatar, and Turkey prohibit cryptocurrency transactions.
One of the pros of crypto coins is the ease of transacting online. In 2021 there were approximately over 400,000 BTC transactions daily across the globe. This can be credited to the fact the transactions are fast, anonymous, and secure. Blockchain technology ensures that all users’ information is safe from any third-party intrusion.
Drawbacks to cryptocurrencies
Although cryptocurrencies offer a secure way for users to transact in different sectors, they have a few drawbacks.
The value of crypto coins is very volatile. This can be because of the many participants, liquidity, or market size. So, it raises the question of ‘will the digital currencies be around for a long time?’ Also, because of the price volatility, many financial institutions do not support these transactions. This leaves users to transact amongst each other.
Cyber security concerns
Since cryptocurrencies use digital technology, they are prone to security issues. In fact, some people have reported having fallen victim to hackers and lost millions in investment. So, to prevent these issues from happening, people need to employ additional security measures. For example, there are exchange websites that allow users to use the Google Authenticator to secure their accounts.
Cryptocurrencies latest trends
The popularity of digital currencies is expected to increase in the coming years. This may also cause more financial institutions to support the coins. Especially with the Central Bank Digital Currency patent by the central bank, most countries like Thailand are now evaluating their digital currencies’ market. Also, companies like Facebook are planning to offer their own digital money, which will allow users to transact using Libra.
The cryptocurrency world is always changing. So, it can be hard to predict how the industry will be in the future. But with the popularity of coins like Bitcoin and Ethereum, we can be sure that they will be here for a long time. Also, different industries now accept cashless transactions. So, it will only make sense if people shift to digital currencies to make payments or invest.