Growth of the crypto market and its potential

by Zoltan Veszer

                     

The crypto market has already tripled its market cap in 2021 and reached an amazing 2.2T USD by the end of April 2021. It means it surpassed Tesla, Facebook, Google, Amazon, Microsoft and yes, now it has the same numbers as Apple, the company with the largest market cap in the world. It shows that investor confidence continues to grow, and the interest in crypto coins is on the rise, especially in the institutional and retail sectors. This is a positive indicator, that we have not seen the best of this unique business model yet.

What will drive the projected growth?

Crypto coins use blockchain technology to operate, which means they are free from external interference. In the future, digital coins will be used more frequently, as they have many benefits compared to fiat currencies. These benefits include reduced transaction fees and interest rates, fast transactions and independence. It also eases doing business, as it is transparent, trackable, sharable and irreversible.

Other growth projections include the constantly growing global acceptance. Many countries are continually allowing the use of crypto coins, as well as creating stable coins that could shoot the industry to incredible heights. As more and more institutions continue to embrace cryptocurrencies, we are likely to witness increased usage or adoption. Apart from that, the tokenization of property including the agricultural sector could be a game-changer for the crypto industry.

But there is more to know,

Cryptos offer various possibilities for business. Nowadays, businesspeople have diverse ways to execute or receive payments. Gone are the days when the only way to do this was through fiat currencies. Nowadays, digital currencies opened up the market by allowing people to transact virtually.  This means that you can sell or buy internationally with ease any time. Potentially, this leads to an increased customer base, which triggers economic growth and the wider usage of cryptocurrencies. Besides, the usage of the digital coins as collateral for loans has the potential to urge more industries to embrace this new medium of trade. I think we are likely to witness more players joining the journey towards financial stability in the future.

Generally, we can say that blockchain technology will fundamentally change the way we look at the financial world, as it will continue to attract more and more people by offering new solutions. Right now, this new technological revolution has only made its first steps, just like the internet did at the beginning of the 1990s. Looking back, we clearly see how the past two decades made a difference in everyday life, and I am sure blockchain will do the same.

This will be the new era of the internet, or in other words internet 3.0. In phase 1.0., the main trend was the exchange of information on the internet, and phase 2.0. was all about new social media surfaces like Facebook, Twitter and Instagram. The next step in this development is blockchain, which will allow people to transact globally, not only with information but financial assets as well.