There is no doubt that the crypto market capitalization is now a global phenomenon given the massive attention that it has received globally. Bitcoin has been at the helm of the cryptocurrency movement being the first digital currency to go mainstream a few years ago. It has particularly played a big role in the popularity and acceptance of cryptocurrency especially due to its impressive growth over the years.
Growth in the market
Blockchain technology, the underlying technology behind Bitcoin is one of the biggest breakthroughs of the modern world. The technology has been used to facilitate the existence of hundreds of other cryptocurrencies that now make up the crypto market capitalization. Despite this, Bitcoin still remains the king in terms of value. The recent surge of the cryptocurrency market, especially towards the end of 2017, demonstrated the disruptive nature and potential of cryptocurrency. It also fueled more adoption of cryptocurrency and led to people knowing more about this rapidly growing market.
Bitcoin at the center of it all
Bitcoin played a huge role in the massive surge in 2017 with its market value peaking at more than $300 billion compared to just above $2 billion in 2012. However, more than half of its gains have been wiped out since then and the price of the cryptocurrency at the time of this press was below $9,000. This huge decline has caused a lot of uncertainty among investors not only about the future of cryptocurrency but also about the future of cryptocurrency in general.
The highly volatile nature of the cryptocurrency is seen across the board even with other cryptocurrencies other than Bitcoin (Altcoins). Some of the advantages of cryptocurrencies have also caused a lot of negativity and scrutiny from regulatory authorities. For example, the fact that they are decentralized and most cryptocurrencies offer anonymity as one of their selling points means they have also supported illegal activities such as drug dealing, peddling weapons and funding terrorism. This has, of course, led to governments being against cryptocurrencies but on the flip side, there has been a lot of excitement especially from liberals and anarchists. This is because cryptocurrencies offer an alternative financial world that is not controlled by governments or single entities.
How things are shaping up for the future of the market
Cryptocurrencies have also generated a lot of appeal, especially with the younger generation for numerous reasons. They include the fact that they align with the digital world, can be accessed from anywhere at anytime, and are relatively faster than fiat currency alternatives as far as transactions convenience is concerned. This plus the fact that the adoption of blockchain technology and cryptocurrencies by more businesses is currently ongoing means that cryptocurrency is here to stay and that the future of cryptocurrency looks quite promising.
Many savvy investors have an optimistic outlook towards the cryptocurrency market due to the above factors even though the current performance of the cryptocurrency market does not look that way. Most cryptocurrencies have experienced massive dips in prices due to different factors over the past few years and thus investors are optimistic that the markets will favor them in the long-run.
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