There are over 19 million Bitcoins worth $450 billion now in circulation. With this market cap, Bitcoin is larger than many markets, and even countries like Switzerland. Investors who are exploring and betting on the prospects of this new technology are the ones driving the market. Those who invest in Bitcoin appear to be depending on the crypto asset’s “inherent value”. This covers the technology and network itself, and the decentralised network.
This inherent value stems from the underlying technology of the blockchain public ledger. Blockchain public ledger technology can disrupt a wide range of transactions. These include financial assets which get recorded digitally and need a trusted third party to verify the transaction.
The crypto market trends will evolve at the pace set by the key participants. There will be occasional growth spurts of legitimacy from one or more of these participants. These moments will lend credibility to the crypto market. There can be five primary market participants. These are merchants and consumers, tech developers, investors, financial institutions, and regulators. These participants will be responsible for advancing the industry toward general acceptance. Once accepted, the market can be expanded sustainably.
Key Participants
Crypto gives us cheaper payment options when compared to traditional money-related services. These options are faster and more secure as well. But crypto is yet to gain acceptability as a payment alternative. At the same time, users use the price volatility of crypto assets as a chance for speculative investments. This can help them turn a profit rather than use it to buy products and services.
Businesses and merchants also benefited from the crypto market. Crypto enables transactions with minimal fees and lower risk as it is instantaneous. Additionally, chances of chargebacks from credit card providers are also eliminated.
Developers
Many competent tech developers have devoted their efforts to crypto mining. Some others have shifted their focus to more entrepreneurial endeavours. This includes the development of crypto exchanges, wallets, and alternative digital assets. The crypto market has only recently begun to attract the right talent required to propel the industry forward. Consumers and organisations must regard crypto as a user-friendly alternative to everyday transactions. In addition, the industry must create cybersecurity technology and protocols.
Investors
Investors appear to be optimistic about the potential presented by crypto and digital assets. The underlying technology’s “inherent value,” provides these investors a reason to be optimistic. As a result, several of the more established crypto-oriented startups are doing well. They have even started attracting institutional investors and Wall Street attention.
Financial Institutions
Banks have connected people who have money with others who need it. However, in recent years, this middleman role is being eroded, and the banking sector is being disintermediated. This is due to the expansion of internet banking and the increased use of alternative payment methods by consumers. These include Amazon gift cards, Apple Pay, Google Wallet, and other mobile payment solutions.
Regulators
Governments all around the world seem to be unsure. They are inconsistent on the classification, treatment, and legality of crypto and digital assets. Regulations are likewise evolving at various rates in different parts of the world.
What comes next?
The emergence of the crypto and digital asset class signals the start of a new era of technology-driven markets. This market will have the potential to disrupt traditional market tactics. This includes long-standing corporate practices and established regulation in some manner. The benefit of consumers and greater macroeconomic success will be of paramount importance. The crypto ecosystem has immense potential. It can provide individuals with unprecedented access to a global payment system. And it can do so anywhere, and at any time. You only need access to the right technology to enter this ecosystem. Considerations such as having a credit history or a bank account do not matter.
We are past discussing the survival of the crypto ecosystem. What needs to be discussed is the direction it will evolve in.
You can buy crypto from ZebPay, one of the oldest crypto exchanges in India.