Over the last few years, cryptocurrency has become immensely popular and poses significant challenges to traditional ways of trading & money transfer. Crypto transactions are decentralized, transparent, fast, and protected against fraudulent acts & undesirable malfunctioning. They work through non-banking financial institutions (NBFC) based on blockchain technology that eliminates the chances of identity theft while ensuring superior security.
Any guesses why they are becoming
popular? Well, scroll to know more.
The rapid surge in
venture capital funding and massive investments in FinTech companies globally
are the main forces behind the exponentially rising popularity of
cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin, among other
platforms. And based on it, a recent research report published by MarkNtel
Advisors has cited that the Global Cryptocurrency Market is set to register
over 50% compounded annual growth rate (CAGR) during 2022-27.
However, since the
time cryptocurrencies have emerged, they have been highly volatile, both in
their values & public opinion. Despite the tremendous popularity they have
gained in recent years, their future remains still unclear. Let's learn where
they're heading.
What's Now for Cryptocurrency?
With the advent of
Covid-19 that brought a halt to most business operations in 2020, governments
of several countries have been legalizing & promoting the use of
cryptocurrencies for purchasing, selling, or trading different assets,
especially considering the cyberattacks that frequently happen across both
governmental & private institutions. It has become the 'need-of-the-hour'
to prevent data manipulation and boost overall data security.
After the initial
economic slump caused by the pandemic, the market has been significantly
expanding, with skyrocketing market values of cryptocurrencies and the optimal
usage of high-speed internet, which, in turn, has resulted in a digital
transformation of industries worldwide.
In the post-COVID
era, there has been an increase in concerns over financial crises associated
with traditional banking, especially regarding the inflation that affects a
country's economy by decreasing the currency value. Cryptocurrency, however, is
not affected by any economic changes since its value is proportioned globally,
which makes it the best option, especially for economically unstable countries.
Meet the Global Hub of Cryptocurrencies
There has been a
notable increase in the use of cryptocurrency for P2P payments due to the
exceptional transparency & maximum security it offers. It becomes more
advanced with blockchain technology that can build a loan marketplace with
better interest rates, instant lending, reduced fees, etc. P2P payments using
cryptocurrencies help customers do direct trading at the best exchange rates in
order to make the most of their profits. It has become highly engaging as it
offers better liquidity than conventional exchanges.
Europe, among all
regions, is currently the global leader in crypto trading, mainly driven by
minimal ownership costs, transparency, and immutability of distributed ledger
technology, coupled with increasing cross-border payments & settlements,
transaction agreements, and trade finance & post-trade/transaction
settlements across the banking sector of several European countries.
The Unclear Path Forward
Considering the economic impacts of a global
pandemic on various countries globally, citizens now prefer investing only in
safe, secure, & profitable environments that ensure safeguarding their
money for the future. In this digital era, where incidences of money
laundering, tax evasions, investment losses, and cyberattacks are mounting at a
phenomenal pace, cryptocurrencies ensure maximum security by facilitating
transparent & safer transactions than traditional payments. These aspects
project a pool of profitable opportunities for the Cryptocurrency Market in the
coming years, with more and more brands entering the ecosystem to cater to
various requirements of the rising marketplace.
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