Deciphering the cryptocurrency market
Bill Gates has rightly said, âThe future of money is digital currency. Digitization has evolved enormously over the years. With many types of technologies in the foreground, blockchain technology is making inroads in many regions. Who would have thought a few years later that paper money could soon be replaced by digital money and currencies? Well, it’s a reality now! With cryptocurrency, a digital currency revolution has already started.
Cryptocurrency rose to prominence in 2009, but has been in the news since 1983. David Chaum, a cryptographer, developed eCash, a crypto system that can be used to conduct digital transactions. However, the term cryptocurrency was coined in 1998. In 2009, Bitcoin became the first cryptocurrency, and the rest is history. While cryptocurrency didn’t gain much importance in its early years, it revolutionized the entire financial ecosystem in its later years. It is largely deregulated and has no obligation on the part of the regulatory authorities.
How has 2021 performed so far for the cryptocurrency market?
2021 has been a roller coaster ride for the cryptocurrency market so far. Earlier this year, a tweet from Tesla founder Elon Musk sparked a lot of hype for a cryptocurrency known as Dogecoin. Its value almost quadrupled in 2-3 months. Additionally, 2021 revealed how volatility could affect the cryptocurrency. Bitcoin’s price volatility hit its highest limit since April 2020 in May 2021. The 30-day annualized volatility was 116.62% in May.
In another development, Daymak Spiritus will become the world’s first electric car mining cryptocurrency. The car will be equipped with high-tech mining hardware and blockchain technology that will integrate cryptography technology into the user interface. Thus, all these developments will have a leading role in influencing the growth of the cryptocurrency market.
What is the environmental impact of cryptocurrency?
The mining required for cryptocurrencies consumes a lot of electricity. This factor elicited negative reactions from various sections. Cryptocurrency mining generally relies on electricity produced from fossil fuels. This factor may prove to be a brake on the growth of the cryptocurrency market. Here are some statistics regarding the overwhelming consumption of electricity:
- About 65% of bitcoin miners are in rural China for mining purposes, as electricity is cheap in those areas. However, most of the electricity is produced from coal and hence this factor has a serious impact on the environment.
- The bitcoin network generates 11.5 kilotons of electronic waste every year.
- Ethereum, another cryptocurrency, uses as much energy as the entire country of Qatar for mining.
Seeing the environmental impact of cryptocurrencies, Tesla recently banned bitcoin transactions for Tesla. These aspects can significantly hinder the growth of the cryptocurrency market.
Important trends that will have a huge impact on the cryptocurrency industry:
- Non-fungible tokens (NFTs) will become mainstream and gain popularity.
- With many countries developing numerous regulations in the unstructured cryptocurrency market, the cryptocurrency tax is one of the high points on the agendas of many countries.
- 5G technology will also contribute to a large extent to the overall development of the cryptocurrency market.
Many services fall under cryptocurrency. The most important are crypto asset management services and the crypto ATM services. As the popularity of cryptocurrency increases, the demand for these services is also increasing exponentially. Let’s explore what exactly crypto asset management services and crypto ATMs are as we delve deeper into the field of cryptocurrency.
Crypto asset management services: It is a process of managing digital assets to render a service efficient by stacking and maintaining a digital ledger through a network involving cryptocurrencies, blockchain companies and others.
Key Drivers of the Crypto Asset Management Services Market
- The growing attraction of a large portion of the world’s population to cryptocurrencies will bring immense growth prospects for the crypto asset management services market. Players help these investors profit from crypto without worrying about technical difficulties.
- These currencies are difficult to grasp and may seem complex to a new user. Players in the crypto asset management services market are helping newcomers to freeze themselves with the usual cryptocurrency process.
Cryptographic ATMs: A crypto automatic teller machine (ATM) is a kiosk that allows the public to exchange cryptocurrencies for a minimal cost. A typical crypto ATM consists of a monitor, receipt printer, and QR scanner.
Key Drivers of the Crypto ATM Market
- The similar functionality of a traditional ATM and ease of operation will bring immense growth prospects for the crypto ATM market.
- Crypto ATMs can make transactions a snap. As soon as the money is inserted into the ATM, a purchase is made without any technical difficulty. Such advantages bring promising growth for the crypto ATM market.
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