The growth of the crypto market
Cryptocurrencies are on the news again. This new digital currency promises to maximize the return on investment by making transactions faster and more reliable. In this article, the various factors that have promoted the growth of the crypto market will be discussed in detail.
Introduction: Cryptocurrency investment seems like a profitable venture now. With big multinational corporates making large investments in cryptocurrencies, the crypto market has grown substantially in the past few years. New cryptocurrencies have been introduced to the market, and each new digital currency promises to improve on the existing codes and structures, promising to usher in faster and more reliable modes of transactions.
Bitcoin was an obscure idea even a decade ago. The idea behind this new digital currency was to make transactions faster and maximize the return on investment. In 2017, the period of its bull run, the value of Bitcoin increased drastically. The value of a single Bitcoin was around 20,000 USD by the end of 2017, registering a growth of around 300% of its value at the beginning of the same year. In 2021, with the 1.5 billion USD investment made by Tesla, which is around 8% of its total asset, Bitcoin value once again rose to touch the 50,000 USD mark. This is likely to invite other big investors like Apple, Twitter, or Google into the crypto market from which it can be estimated that the market will witness a gradual growth in the coming days.
So what is exactly the reason behind this growth of the crypto market? Let us look at the various factors that might be responsible for the growth of cryptocurrency as a new model of digital currency as well as a valuable asset of our time.
List and specifications of some of the popular cryptocurrencies
Bitcoin: this digital currency is a decentralized digital currency that employs cryptography. It is a peer-to-peer transactions system that is not regulated by any authority such as national or international banks. It can carry transactions across the border without the intervention of any intermediate regulatory bodies.
Ethereum: Similar to Bitcoin the Ethereum network uses blockchain technology. In the transaction of this currency, no intervening body is present to regulate transactions. The smart contract technology that it uses allows developers across the world to create applications that are decentralized on its blockchain network.
IOST: This cryptocurrency is also a decentralized network that uses blockchain technology. It has within its ecosystem several nodes (blockchain computers), wallets, and several dApps. The protocol aims to create and contribute to a decentralized economy. It is similar to Bitcoin, EOS, and other cryptocurrencies, but is allegedly much more time-efficient than the other currencies.
Ripple: Ripple is much faster in terms of transactions, as it promises to complete a transaction within a couple of seconds, where Bitcoin and other cryptocurrencies usually take more than a couple of minutes till completion.
EOS: similar to most other cryptocurrencies, the EOS also uses decentralized blockchain technology. Its network accommodates decentralized trading applications and wallets.
The reason behind the popularity of cryptocurrencies
As it can be seen most of the popular cryptocurrencies listed above uses a decentralized blockchain technology that promises to make transactions time efficient. Now, what is this blockchain technology? This technology is a decentralized ledger system that is not regulated by any third party such as the banks and the governments in the case of the legal tender of different countries. By eliminating third-party intervention, crypto is much faster as it does not require approval and sanction from these traditional regulating bodies.
Every transaction detail is stored in the form of memory blocks, where every new transaction record is mined as a new block in the blockchain. The blockchains are maintained across computer systems across the world known as nodes. The digital ledger is accurate and immune to tampering as the transaction detail cannot be altered without altering and disrupting the existing blockchain. This makes cryptocurrency a reliable mode of alternate currency.
Conclusion: with the growth of the crypto market, new traders are showing interest in the market every day. Various decentralized trading applications like click money system offer excellent trading facilities to new traders. However, to maximize profit traders should conduct market research to find out the right currencies to invest in.
