Cryptocurrency, the digital currency is managed by advanced blockchain technology, has seen a steep growth in the last ten years. There are almost a 5.8million active cryptocurrency users all over the world. It’s perhaps the new gold of this century. Despite of all the stories flooded in the news and the journals about cryptocurrency being safe, you will be surprised to know how many people invest in it.
Why has digital currency failed to acquire the primary market? Why are they yet to reach the mainstream market?
Out of all the cryptocurrencies, Bitcoin is the most preferred one for a decade. Bitcoin gives you the liberty to control your funds more remarkably. It is cheaper and secure, and unlike banks, it is owned by a centralized system.
Users can transfer money from one digital wallet to the other quickly with the bitcoin. Each transaction is secure and recorded with digital leverage called the blockchain. Specific factors that made bitcoin popular among the other cryptocurrencies are as follows:
Its price remains almost high than the other cryptocurrencies. Its price is 45,000USD, and major companies like Microsoft, Overstock, etc., have started accepting it. Bitcoin is supported by various exchange platforms, which further makes it easier for people to access it. The investment market is mostly run by bitcoin, as the market cap of bitcoin is the highest among all the cryptocurrencies.
The currency’s current supply multiples by its price, giving the particular currency’s market cap value, also known as the currency’s circulation supply. Higher is the market cap; the lesser is the risk. Bitcoin sets the highest market cap of 1trillion dollars over the last six months. Ethereum, followed by bitcoin, has a market cap of 153billion USD. Whereas, Stellar, XRP, and Cardano have a market cap of $42, $40, and $38 billion, respectively.
Many billionaires like Tesla, have started investing in it, which makes it more popular for other people to adapt. Several analysts are still in doubt due to its volatile nature, which is still little used in commerce. Studies say that cryptocurrency is a globalized and localized industry that focuses on mining rather than trading and other purposes.
According to Coincap, the market provider, there are more than 500 cryptocurrencies currently circulating on the market. However, the only drawback is that any country’s legal government does not back them.
The digital money expert David Birch says cryptocurrency is and will remain a financial tool that serves niche user category. According to him, bitcoin might sound fancy to new programmers, developers, or teenagers, or someone interested in finance. Still, People want their hard-earned money to be safe in an organization and not control them.
If bitcoins helped in doing the business way, Banks would have been using them.
Cryptocurrencies are used in financial organizations for specific purposes like financial transactions that have a substantial risk associated with them or any unlawful activity such as drug dealing, purchasing, or cyber fraud.
The practical use of cryptocurrency is, by far, complicated by nature. Bitcoin is somehow related to technology; developers or people with technical knowledge are attracted to it.
The general public is now becoming familiar with digital currencies, but it is still challenging to explain the ins and outs of cryptocurrency to the general public. The difficulty in accessing bitcoin is restricting the general public from adopting it. Understanding about exchange registrations, trading out of it will become a bit tough.
Banks are actively investing about cryptocurrencies and the ways they can use it, but the financial industry claims that digital currencies should come from blockchain and not from any currency.
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People form the investment industries are generally associated with blockchain technology, but blockchain has enough potential to work on new services and can even be a replacement of digital currencies.
Financial industry has realized that blockchain will enable faster financial services in the near future. Privacy can also be a challenge to blockchain applications, as they are not totally private.