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.