Cryptocurrency Market Research
Cryptocurrencies have become an international sensation known to most people. Large accounting firms and major banks are exploring cryptocurrencies. Also getting in on the action are prominent software companies and even governments. These entities have been distributing papers about cryptocurrency and starting so-called blockchain projects. However, outside the clamor, most people have minimal knowledge about cryptocurrencies. Even business advisors, bankers, developers, and scientists are clueless.
A cryptocurrency is not actual money that you can take with you. Instead, it is a digital asset that you can exchange. Owners don’t have to depend on banks to enable transactions. They can use crypto freely in place of fiat currency for an exchange. They can thus escape the charges that come with using financial institutions. Cryptocurrency transactions are handled and finalized through a blockchain network.
Who is Involved in Cryptocurrency?
Top investment banks have taken an interest in cryptocurrencies. Some of these banks are Barclays, BMO Financial Group, and Credit Suisse. Australia’s Commonwealth Bank, HSBC, and Natixis are also part of the crypto space. Other banks include UBS, Royal Bank of Scotland, Wells Fargo, TD Bank, and UniCredit. Other titans such as Bank of America and Citi may also be getting on board.
The number of celebrity crypto-enthusiasts is also growing at a rapid pace. Stars can play the influencer card. They can encourage large audiences to learn more about cryptocurrency at least. Stars like football sensation Lionel Messi are getting involved. Boxing champion Floyd Mayweather and Hollywood actor Ashton Kutcher are also players in the crypto space.
Uses for Cryptocurrency
People will get the chance to use cryptocurrencies for a vast number of transactions. The possibilities rise as more and more merchants accept them. Travel transactions are one category. Online travel agencies started taking crypto in 2013. Travelers and business owners can use crypto to avoid foreign exchange risk. Cryptocurrencies are especially valuable for use in developing economies with volatile currencies.
Another well-known advantage of cryptocurrencies is their capacity to send and receive payments. These payments occur at high speed for a low cost. A recent $99 million litecoin transaction, for example, took only two and a half minutes to process. It cost the sender only $0.40 in transaction fees. Cryptocurrency is an excellent payment system for international transactions.
Why is Cryptocurrency Important?
The blockchain is the technology behind most cryptocurrencies. It’s innovative since it allows parties to exchange value directly with each other. These parties don’t have to trust each other, nor do they have to involve an intermediary. It replaces trust in central organizations with faith in the source code. Bitcoin is based on a global, trustless network.
Privacy is a top priority for many people. Users can expect their transactions to be confidential when dealing with cryptocurrencies. Anyone can carry out transactions and remain anonymous. Users don’t have to share credentials with others like they currently do with credit cards. This anonymity helps to prevent identity theft.
The Future of Cryptocurrency
A hacker can loot a virtual vault, or a computer crash can obliterate one’s digital wealth. These and other limitations of cryptocurrencies may be overcome in time. Technological advances will help to iron out their flaws. The number of merchants who accept cryptocurrency has already increased. However, they are still very much in the minority. Crypto may become part of the mainstream financial system in the future. It has to cross several hurdles first.
A recent survey shows that students are embracing crypto. Their adoption and use of these currencies are at twice the rate of the general population. The student demographic is seen as a bellwether of technological and cultural change. Still, industry analysts believe that mass adoption of cryptocurrencies will take some time.
About SIS FinTech Research and Strategy Consulting
SIS FinTech Research and Strategy consulting provides comprehensive data, insight, strategies and tools for the next frontier in Financial Services. Our solutions include:
- Market Opportunity & Entry Strategy
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