The crypto market is in the news since its first coin was released in 2009, that is, Bitcoin. The history of Bitcoin is amazing. Each milestone of Bitcoin takes you to a different world where you will get the exact picture of what cryptocurrency is. The long way of cryptocurrency till today give you thousands of stories. Considering the past two years, it has seen a rapid rise in the financial market. The value of the crypto coins has attracted more investors.
Though the industry is highly volatile, investors have shown keen interest in investing their assets into it to get more returns. Many of the investors in this industry have reaped wonderful benefits. Investment strategy and patience is the key to success in the crypto market.
This new-age technology is associated with risks that the smartest investor also cannot avoid. Blockchain technology is the system on which cryptocurrency works. A digital ledger (database) records the cryptocurrency transactions. It is not a single ledger that controls everything. It is a decentralized network that runs a blockchain to authenticate crypto transactions.
Supporters of blockchain technology believe that it gives transparency to the system and thus we can trust it for the security of our assets.
Bitcoin and Ethereum at their best
The world’s largest crypto coin, Bitcoin is at its best! It has reached a peak of a three-week high and at 7% up. Hence the market capitalization of cryptocurrency jumped up and the trading volume too. In the meantime, Ethereum also has jumped up to its all-time high price today. The market capitalization also has gone up. By betting on the price of Bitcoin, investors wish that the price of it goes up in the future. It is just like the stock market, where investors wish the shares they buy from the company gets a maximum price.
We can stress the fact that Bitcoin has changed the perception of a cryptocurrency overall. It has unleashed a whole new technology, a new system to invest your asset, and a new way of getting your asset to grow. The cryptocurrency had a strong oppose at the beginning of its establishment and the perception has completely changed now.
The new system of cryptocurrency has changed the entire legacy of the financial system over the years. The investment ways also have changed by the beginning of the new blockchain technology era. The innovation in the cryptocurrency sector, that is, ‘Defi’ has excited the investors and more people started to involve in the cryptic market.
This new technology evolution history is exciting. There are few key markets in this revolutionary system.
The link between consumers and the merchants
The peer-to-peer payment option the cryptocurrency offers has made the consumers go to it rather than the traditional money services. Consumers don’t have to give their details while transactions through cryptocurrencies in the business field. But most of the time, consumers prefer cryptocurrencies to trade but not to purchase goods. This is because of the volatile price of the cryptocurrency.
According to a survey, only 6% of the investors have complete knowledge of cryptocurrencies. But now more and more knowledge base has been put up on the internet where people can get the picture of it. We hope that in the coming days the familiarity with the blockchain system will increase among people.
When seen from the perspective of merchants, cryptocurrencies offer low transaction fees and instant payment settlements. Also, there is no possibility of chargebacks.
- Technical Developments
It is the technical developers who have put effort into crypto technology. Many developers have created business suits like crypto exchanges, wallet services, and some created their cryptocurrencies. The cryptocurrency industry going to the next level just because for these dedicated developers this market is deep.
Since corporations and common consumers see cryptocurrency as a user-friendly solution for their transactions, the market has got its mainstream acceptance. Now the crypto technology should get advanced in terms of cybersecurity and its protocols.
Investors in the crypto market are quite confident in the opportunities created by cryptocurrencies and cryptography. The confidence in the investors is just because of the underlying essential rules of this new technology. This is the reason the cryptocurrency world has recently attracted institutional investors and Wall Street.
- Finance System
The traditional finance system is connecting the needy to the money. The intermediate concept is fading away in the bank sector adopting new technology. This has made a way for new payment methods like Google Pay, Amazon Pay, etc.
The impact of cryptocurrency has been seen in India so much that the Government is considering regulating it. The inconsistency and legality of cryptocurrency matters for the government. The international Bitcoin fever of 2013 has spread all over India too. Therefore, the RBI has issued a short notice warning of the risks of cryptocurrencies.
Recently more and more people in India are involved in Bitcoin and this has made RBI release more regulations on this. It listed various risks involved in cryptocurrency and warned users on how they can lose their money in cryptocurrency investments. The list included the risks of hacking, access credential compromises, loss of passwords, malware attacks, and losing the e-wallets.
Since cryptocurrency payments are based on peer-to-peer transactions, there are no authorized central regulators to check on them. So in the case of losses, disputes, or frauds, users have no recourse.
We can conclude that cryptocurrency is a beginning of a new era of the technology-driven finance market. This has the potential to disrupt the traditional market strategy, the old-age business practices for the benefit of consumers.
Cryptocurrency technology allows users to access the global payment service anywhere, anytime. The only thing we want to know is the evolution of cryptocurrency and the time it is reaching to get matured.
The awareness of cryptocurrency keeps growing in social media as well as in the TV ads in India. It is said that now is the right time to invest in it to get maximum benefit.