The cryptocurrency market is on an exponential rise ever since the inception of Bitcoin. Though it was not really a concept that garnered immediate attention in 2009, it caught the fancy of several enterprises and individuals later in the year 2012. Digital currencies earned a whole new meaning as they worked in sync with cryptography to secure financial transactions and to regulate the formation of new financial units. What made the concept was its ability to increase the supply of digital currency without leading to fraud.
Millennials today operate largely through the cloud and even money transactions today have taken a digital form. With the revolutionary success of e-commerce platforms and online banking methods, the global populace has certainly come a long way from mere physical currency transactions. Financial transaction, dealings, and trades today have traversed various dimensions and led to an emergent market for cryptocurrency. The medium of exchange, that is now considered as an electronic substitute for securing transactions online, has earned extreme popularity with the global users.
This is perhaps why the industry has earned a nod of approval from various quarters, such as banking, insurance, real estate, stock broking, and virtual currency for online trades. The cryptocurrency market has grown significantly in the last few years as several new companies have ventured into the industry to provide their own set of decentralized systems.
The growth can be attributed to the fact that there are merely negligible fees for a transaction in cryptocurrency exchange. Moreover, it also eliminates the need for third parties in business deals, thus diminishing the chances of fraud or theft of financial units.
Legal status for cryptocurrency boosts the market
Any new financial practice that is introduced to the public at large attains better credibility when such practice is legalized. Cryptocurrency has been swift in gaining widespread acceptance from several reigning governments and economies as a progressive step towards financial independence. The use of cryptocurrencies, such as Bitcoin is a measure that guarantees an efficient and inexpensive solution that is expected to speed up the adoption of financial technologies by various industries. A considerable number of economies are in the process of conferring a legal status to cryptocurrencies and strengthening their financial services sector in this process.
For instance, Japan has recently passed a new law which has allowed cryptocurrency as a legal method of payment. The new legislation also implies that the Bitcoin exchanges, in order to be legally acceptable, will have to conform to the anti-money-laundering and know-your-customer regulations. The Bitcoin spot exchange market has earlier spouted certain doubts among the USA and other countries, about the possibility of fraud and market manipulation.
Pavel Matveev, co-founder at bitcoin platform Wirex, said: “Japan’s recognition of consumers’ appetite for cryptocurrency payments is an important development and provides other governments with food for thought if they wish to compete in an increasingly globalised and digital world.” However, with this acceptance by Japan in the proper recognition of Bitcoin as a part of valid financial infrastructure, it is sure to set an example for other reigning governments. They are sure to follow closely in Japan’s footsteps. Even Indian cryptocurrency community has put in a petition to demand a legal status for cryptocurrency, organized by the Digital Asset and Blockchain Foundation of India. This marks a dynamic growth in the global cryptocurrency market.
Competitors team up for more offerings
The cryptocurrency exchange markets today witness significant transactions and dealings that only add to the various dimensions of the market and contribute to the global market dynamics. A large number of competitors engaged in the global market have been quick in catching up with efficient and inexpensive solutions for various industry verticals. It is not uncommon to see several competitors teaming up together or collaborating with other financial institutions to provide more offerings in their solutions and capture a larger customer-base.
For example, TaaS, which is a tokenized close-end fund that is devoted to blockchain assets, has recently partnered with two other cryptocurrency exchanges. It has teamed up with Livecoin and Kuna, in a bid to offer tokens for trading which would begin later in 2017. The platform makes use of the Ethereum blockchain and its innoivative Cryptographic Audit technology that would offer a unique way to participate in the raising of capital and even fund management.
TaaS Co-founder and President Ruslan Gavrilyuk said, “TaaS is proud to partner with Livecoin and Kuna, helping early adopters capitalize on the surging blockchain and cryptocurrency spaces. With the TaaS token tradable on the Livecoin and Kuna exchanges, more investors can gain easy, fully transparent and convenient access to the vast cryptocurrency market.”
The global cryptocurrency market is poised for a lucrative growth in the next few years, owing to the rapid adoption of advanced financial architecture by various economies of the world. The easy employability of cryptocurrencies and the acceptance of blockchain technology across several industrial sectors is sure to give a real push to the global market.