Why is Cryptocurrency Growth So Hot?
Cryptocurrency growth is a hot topic right now. While it has been around for years, it has recently experienced a surge in popularity, largely because of the millennial generation’s reliance on cryptos during times of economic uncertainty. There are several reasons behind this, but most of them stem from a newfound acceptance of digital transformation in all industries. Blockchain is one such technology that has been widely implemented to address key issues. As a result, the FinTech segment has been quick to adopt the technology to digitize traditional currencies for greater security and transparency.
The growth of cryptocurrency has been driven in large part by the ease of use of the technology. Digital currencies are becoming more common in more developed countries, largely because of their convenience and flexibility in transactions, as well as their long-term value. It is easier than ever to buy bitcoins and use them for all types of transactions, including making payments. Furthermore, they are not based on any single country, so investors can invest in any one of them, regardless of where they live.
The global cryptocurrency market is predicted to grow at an annual rate of nearly 13% by 2030. The popularity of cryptocurrency investing has also facilitated the accessibility of this emerging industry. Globally, the market for digital currencies is predicted to grow by more than ten times its size in 2028. Furthermore, nearly 30% of investors believe that government regulations of cryptocurrencies will help the cryptocurrency industry grow in value and curb fraud. The research also highlights the various types of cryptocurrency, including bitcoin and Ethereum, as well as their applications.
While many pundits predict a consolidation of the crypto industry in the near future, the growth of crypto-giants will likely remain largely unaffected by this trend. The future of the industry depends on regulatory reactions and their productive use. However, a recent news report from the US investment giant BlackRock indicates that cryptocurrency will be worth $175 billion by 2027. A few more years of growth are needed to see the cryptocurrency market reach its full potential.
In March, the G20 finance ministers met in Argentina to discuss regulation of cryptocurrencies. The countries at the summit opted to regulate digital currencies in order to address concerns about security. Furthermore, Russia has already passed legislation to regulate digital currencies, and Japan plans to issue its own official crypto tokens for the 2020 Tokyo Olympics. However, Germany is also cautious and has not approved any digital assets. In the meantime, the US is the largest cryptocurrency market.
The ban in China on Bitcoin mining has led to a large outcry from environmental activists. Some miners are now exploring the use of nuclear power for a more environmentally friendly mining setup. With more people adopting crypto, the environmental impact of mining would be among the biggest challenges. In addition to the economic implications, cryptocurrency mining requires vast amounts of energy, which is equivalent to the output of the largest airline in the world. Further, the mining of a single crypto transaction uses as much energy as a million and a half Visa transactions.