In today’s world, almost everyone is aware of what CRYPTOCURRENCY is and the financial opportunities it brings along with it. It is a fresh approach compared to fiat currencies, but it is a controversial form of monetary exchange due to its propensity for illegal activities and no oversight in transactions. Like everything in the fiscal world, it has its ups and downs. It is a highly volatile market; crypto has made both queens-and paupers in a matter of minutes. The one advantage this form of currency has over others is that it is a type of digital currency which is decentralized and not controlled by any government.
It was initially introduced in the 80s when it used to be called cyber currency. But it started gaining popularity in the late 2000s when bitcoin was introduced. Since then, it has not looked back and has been all the rage and its market has grown exponentially with more and more people investing. What initially started with Bitcoin has now grown into countless different currencies providing investors with the privilegeof endless options to invest in.
As of December 2022, CRYPTOCURRENCY has a market cap of $844 billion.
The main driving factor of people investing in it is that it allows individuals to transfer funds across borders without any government or bank interference with transaction speed and convenience being additional motivating factors. It also provides end-to-end security and privacy to its users while also protecting the investment against inflation and other external factors.
Any investment in the financial market has its risks for it be the stock market, mutual funds or even gold bonds. But in the crypto market, the risks are higher as it is completely decentralized with no authority surveilling and regulating its usage. Due to its unstable nature and everlasting uncertainty, the market has seen a few crashes causing heavy losses to its investors and prices dropping to new lows. While the market went through a steady rise since 2009, it crashed in 2017, causing ripple effects for everyone involved,all in all, 2017 was a difficult time to be a crypto investor. Even in 2022, the crypto market has been in a constant downward trend with no relief in the near future for its stakeholders. The one thing everyone should know about CRYPTOCURRENCY is that it holds no value of its own, it’s not backed by anygold or diamonds or anything. Its value solely depends on how much someone is willing to trade for it.