Cryptocurrency, a revolutionary digital medium of exchanging money, has been making headlines over the past few years. Indeed, the cryptocurrency craze is reaching frenzied levels, especially after Bitcoin prices rose above the $20,000 marker last year for the first time in history.
Today, Cryptocurrencies are worth close to $200 billion worldwide, having more than doubled in terms of worth in the past six months alone. Cryptocurrency trading, like with Bitcoins, is an anonymous and safe financial system that employs blockchain technology to operate.
Why have cryptocurrencies attracted such elevated levels of interest in recent times?
There are many reasons for a cryptocurrency’s inherent popularity. It is anonymous, safe and decentralized. Plus, its flow is determined entirely based on market demand, and it is not regulated and controlled by a singular authority like any other conventional currency. Cryptocurrencies are near impossible to counterfeit, thanks to the complicated code system that encrypts every single transfer, ensuring absolute safety and complete anonymity for every user.
Despite the fact that most financial advisors will caution investors against them, cryptocurrencies make for a genuinely rewarding investment endeavor. However, they have a long way to go before they can commercially replace the traditional currencies as a tool for global commerce. When we talk about the future of money, cryptocurrencies are set to play a pivotal role. Notably, one cryptocurrency that has entered the public lexicon as the go-to digital asset is Bitcoin.
One of the most prominent developments in the financial markets during 2017 was the remarkable rally in cryptocurrencies exchange and their emergence into a new, unique asset class. Throughout the year, the mainstream view remained offhand regarding the prospects of Bitcoin and its crypto-rivals.
Bitcoin price boosts the cryptocurrency market value
By far, Bitcoin is the most famous among the various cryptocurrencies. Having emerged in 2009, Bitcoin is the oldest form of cryptocurrency. Last year, Bitcoin’s performance from a trading perspective was nothing short of stellar. It is no wonder that, when an asset class has triple-digit returns with no end in sight, it not only gets the attention of wealthy investors, but also eventually trickles down to the general public.
The world’s first example of a distributed, encrypted and decentralized currency, Bitcoin price reached a record milestone in 2017. This act is sure to be replicated, and will make further headlines in 2018, making people aware of the existence of Bitcoin currency and the numerous other cryptocurrencies that have since emerged. Although there are hundreds of cryptocurrencies in the market, a vast number of them cannot be exchanged directly into US dollars. However, they can be exchanged for Bitcoins, which can later be converted to dollars.
What’s next for cryptocurrencies in 2018?
Either due to the remarkable developments in blockchain technology, or increased investments in Bitcoins and other forms of cryptocurrencies such as Ethereum, Zcash, Dash, Ripple and Monero, the recent rise of these digital currencies is likely to take the industry to the next level in 2018. Although most of these currencies, including Bitcoin, are in a nascent stage of their development into full-fledged monetary instruments, their existence and prospective growth is never in question. However, until more concrete regulators and regulations fall in place, it’s still very much the “wild west” where cryptocurrencies are concerned.
One of the more positive developments in this discipline is the increasing diversity. While Bitcoin was for long the ultimate leader in the market, holding approximately 80% of the market cap, others including Ethereum are slowly making significant gains and knocking Bitcoin currency down to just about 50 percent. The benefits that have emerged from currencies other than Bitcoin are a great sign that this is more of a resurgence of interest in crypto and less of the proverbial (and ultimately doomed) bubble.
In due time, blockchain technology that supports these digital currencies will be more sophisticated and will be even more worthy of investment. By and large, the global cryptocurrency market is set to soar in the coming years, with improved technologies and increased awareness adding to the plot.
