Cryptocurrencies burst into a financially imbalanced world ruled by fiat currencies like the USD, GBP, EUR, Naira, Yen, and so on. The strength of each currency was a direct reflection of their individual economies – that is, currency was subjected to the policies and happenings within its country of origin.
This alone removed the level playing ground for investors coming from the different parts of the world. In 2008, the world’s first digital currency – Bitcoin emerged from the desk of Satoshi Nakamoto. Cryptocurrencies started as something alien to the business world yet have grown to become one of the most flourishing marketplaces. Bitcoin Era went from having people doubt its legitimacy to having 3 in every four people hold some crypto assets.
The prices of cryptocurrencies skyrocketed in 2021. Due to its immense popularity, developers started adding new types of cryptocurrencies to the list. In 2021 alone, about 1000 new cryptocurrencies were generated every month.
Major players in the evolution of the crypto market
The crypto market’s evolution may seem like a quick process, but it was gradual. Over time, many factors have played roles in developing the crypto market into what it is today.
The technological upgrades made crypto accessible to local investors. This ultimately increased the popularity of the crypto market, which in return brought more investors towards crypto assets and increased their demand.
Recently, crypto has been stepping into the mainstream and becoming a form of payment. This has been possible due to global organizations’ wide range of institutional crypto adoption. A notable name among such brands is PayPal. PayPal has recently announced it will accept payments via cryptocurrencies.
Please keep reading to get an insight into how different members played their roles in increasing the popularity and demand of crypto and how it has affected them.
Developers and Miners
As we know that cryptocurrencies are generated through a process called mining. Intellectuals Solve complex algorithms to mine a coin and get a specified amount of crypto coins as a reward.
While these algorithm experts mined crypto coins, tech geeks developed crypto exchanges to make the trade of cryptocurrencies possible. These changes also include crypto wallets and all different types of cryptocurrencies.
Without these tech developers, the generation of crypto coins and the trade of crypto assets wouldn’t have been possible.
Furthermore, the credit for the increasing popularity and demand of cryptocurrencies goes to consumers and investors across the globe. These consumers gave tech developers various opportunities to come up with better upgrades in the blockchain technology and crypto exchanges to develop today’s user-friendly interface.
Investors and Global Organizations
With the recent initial adoption of cryptocurrencies, investors and global organizations have become similar. All thanks to the local investors, the popularity of the crypto market increased to an extent where global organizations and brands were compelled to give crypto a second thought.
Big companies like PayPal have recently announced adopting cryptocurrencies, mainly bitcoin, as payment. This is a significant stepping stone for crypto to step into the mainstream.
Although banks are still the intermediate between two parties in transactions involving fiat money, their usage has still been reduced. Aside from cryptocurrencies being a reason for this reduction in the applications of banking services, online banking has also played its role.
The role of lawmakers and regulators cannot be overlooked. Cryptomarket is a global market that equally affects all investors, no matter where they reside. Therefore, it is significant to have uniform regulations across the globe.
For instance, imagine one country places heavy taxes on crypto transactions while the other places none. This would be unfair to the investors.
Any delay in these regulations will ultimately threaten investors’ crypto assets and increase the risk.