Cryptocurrencies have come a long way since their inception with bitcoin in 2009. Since then, the Bitcoin software has been made public, and mining has taken place. It marked the beginning of powerful virtual currencies that may eventually replace traditional currencies. The crypto market volume is increasing exponentially with time, owing to the high returns on investment rates of cryptocurrencies. Bitcoin, the most widely used decentralized currency, has a floating exchange rate and a market capitalization of US$811 billion. Since the start of the year, its market value has increased by over 50%. Over a year, the increase is over 400% creating quite a stir in the crypto news.
According to a recent report, the cryptocurrency India market alone is predicted to achieve $241 million by 2030 and $2.3 billion by 2026. Since RBI has lifted its ban on March 2021, India has witnessed a tremendous surge in the crypto market volume, now having the highest number of crypto owners in the world at 10.7 crores, followed at a distance by the US with 2.74 crores. Today, investors want their money to grow in tandem with the global growth rate, whereas, the traditional financial system has been unable to fulfil the growing demands of the current times. The new pandemic-recovered world is seeking high investment returns via smooth financial transactions. Until it reaches considerable price stability and market acceptance, many investors rely on the boost of the current market capitalization to increase the value of their investments. The blockchain ledger system will potentially disrupt transactions other than the traditional payment system like stock, bonds, etc. that are stored digitally.
Cryptocurrencies unlock numerous technological opportunities like:
- Smart Contracts- It is possible to create protocols and enforce contracts digitally.
- Smart Properties- Trade properties on the crypto wallet.
- Notary Services- Establish the existence of documents at a specific date or time.
- Bonded Identity Services- Secure blockchain-verified identification.
The main factors for stable market development are below :
- Consumers & Merchants- Digital currency offers cheaper and faster peer-to-peer transactions as compared to the traditional method where personal details are required. The market volatility and speculative investments promote the trading of cryptocoins more than purchasing them. More awareness is essential for better investment decisions.
- Developers- While some tech developers are dedicated to mining more coins, others have chasing pursuits like developing exchanges, wallet services, and developing alternate cryptos. These talents are essential in taking the industry to another stage.
- Investors- The inherent value of the technologies keeps the investors optimistic about the bright future of the crypto market.
- Financial Institutions- The middle man has been discarded in virtual transactions, so people prefer alternative methods such as Amazon Gift Cards, Google Payments, etc.
- Regulators- To stabilize the crypto market, more attention is needed on the regulator’s part as their approach towards this disruption has been ambiguous from the beginning.