The Cryptocurrency boom
Over the past year, in particular, I’m sure you will have seen a lot of discussion around the infamous rise and boom of ‘cryptocurrency’. It is a concept that rose to prominence in 2009 when tech enthusiasts wanted to create a way for a virtual currency to be exchanged between private individuals/groups via digital means. Essentially it is a freer method of payment, without restriction and regulation. You will have seen the word ‘Bitcoin’ banded around when talking about the emergence of the cryptocurrency. That’s because it is the preeminent cryptocurrency and the most widely used in the market.
So what does the future hold for cryptocurrency?
The cryptocurrency market is going from strength to strength- if you’d invested $10 in Bitcoin in 2010, you’d be a multi-millionaire now (if you’d cashed out). However, the cryptocurrency market is arguably the most volatile market in the world to invest (trade) in because it is so new and still so unknown. It is not uncommon for various currencies to go down by 25% in a day, yet, given the rise and emergence of currencies and their popularity in everyday life, the market is rapidly on the rise. A lot has been discussed about whether the cryptocurrency market is in a bubble - given that the price and value of Bitcoin alone has risen by 842% (Coinbase) and other, lesser known currencies have risen in value by 2200%.
In particular, I think investors will continue to hedge their bets on the cryptocurrency market but we will see more investors looking at blockchain platforms, who are offering ICOs (Initial Coin Offerings), and innovative new ways to trade, buy, sell, utilise and securely store cryptocurrencies. With financial institutions, retailers and technology companies increasing their use of cryptocurrencies, I think you’ll see platforms like Javvy pave the way for a new cryptocurrency boom.
If I had a crystal ball and I was able to look into the future, I’d argue that we will be seeing the introduction of the more secure and better known cryptocurrencies into business operations and payments. Bitcoin and Ethereum, in particular, are being more commonly introduced worldwide and Ripple (XRP) is being introduced into banks and financial institutions as a unregulated way of quick transfer.
Watch this space closely!