Home Finance Cryptocurrency Market Review – A brief guide on Cryptocurrencies in 2020

Cryptocurrency Market Review – A brief guide on Cryptocurrencies in 2020

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Here is a Brief Review of the Cryptocurrency Market. The Crypto market is unpredictable as always, and it takes a wise move to invest via a cryptocurrency wallet app with unexpected ups or downs, hard to predict due to unfavorable factors.It has been on top of online investments since 2018, and still, it has been generating a buzz among investors with new cryptocurrencies launching daily, in global financial markets.

Crypto Market Outlook 2020.

When looking at the overall worldwide Cryptocurrency Market, there has been a steady increase in the prices of cryptocurrencies as soon as the month of March begins after a roller coaster ride seen in the case of the cryptocurrencies.

Due to the diverse nature of cryptocurrency landscape, digital wallet solutions providers are still trying to figure out whether it’s worthwhile to invest in digital currency or not, considering its unregulated nature with no defining parameters to predict future of digitized currencies.

Cryptocurrencies would always be risky assets to deal with due to its political instability allowing it to be riskier as compared to other assets.

As far as the current scenario goes, crypto markets are heading with a bullish pace as per NASDAQ, with the entire size of the cryptocurrency market reaching out to nearly 8 billion dollars by the end of 2024 with a compound aggregate growth rate of almost 59%.

Source: https://www.nasdaq.com/articles/report-blockchain-technology-market-reach-77-billion-2024-2017-01-20%3famp

You can have this cryptocurrency considered as an alternative fiat currency to the existing monetary system to be used as a disruptive concept that can be unpredictable.

Irrespective of whether be small and medium enterprises (SMEs), established firms, or start-ups, cryptocurrencies are still a novel concept when it comes to transactional capabilities.

This ecosystem has attracted venture funding from across the globe with so many partnerships and collaborations resulting in an end to end solutions.

The factors that have always driven the cryptocurrency market are a rise in venture capital, monetary regulations fluctuations, increasing cost of cross border remittance, raising developing countries’ remittances, transparency of distributed ledger technology (DLT), and many more factors.

Bitcoin is still the show-stealer.

Bitcoin price peaked the record high way back in 2017, as featured on Changelly.

The reason why Bitcoin has been the king of cryptocurrencies down the line and a preferred choice for cryptocurrency payment solutions is due to its pioneering initiative and accredited with the world’s first cryptocurrency followed by other cryptocurrencies launched at regular intervals slowly and gradually. No matter what the number of cryptocurrencies shows up in the cryptocurrency, nothing can beat the pioneer when it comes to popularity and pricing.

Cryptocurrency is a popular online payment mode.

Cryptocurrency is considered to be a huge market for online trading standing at a staggering $900 million by the arrival of 2024 with a CAGR of almost 5%.

While these figures are meant for trading purposes, it is the digital payment trend showing great promise in terms of a CAGR of projected 12.50% during the window of 2019-2024.

You can expect future payments to be taking place in terms of international transfers, consumer chargebacks, low fees, decentralized systems, fraud protection, and enhanced transactional security.

Cryptocurrency do have in store significant growth opportunities

Countries with a developing economy such as Brazil, China, and India have already started to use cryptocurrencies for a variety of branchless banking services while developed countries like the US, Japan, and Germany are showing tremendous potential with the same.

The reason why cryptocurrency has a long way to go is due to its varied benefits with the likes of compliance free transactions, smooth online payments, extremely low fees, and an ultra-rapid remittance transfer making it a viable option.

Remittance charges are usually very high and also payments related to donations, salaries, contracts, and similar other remittances can see a great option in cryptocurrency.

Cryptocurrency does face fatal challenging hurdles as well.

The two major hurdles always faced by cryptocurrency are in the form of technicality and scalability.

The technical problem pertains to the blockchain centralization while containing it at one place due to the fact that as the blockchain grows, the problems start taking place with computational power, storage, and bandwidth posing a great risk of having everything centralized.

Scalability problem arises since blockchain has a default limit of 1MB per byte and getting over it is a pretty hard problem to deal with because that would mean changing the entire incompatible protocol of cryptocurrency like Bitcoin wherein this problem occurs.

With the popularity of cryptocurrency as a cashless payment solution, these scalability issues are only going to increase with different aspects that need to be tackled coming into play likewise total blocks, block size, and protocol functioning.

However, where on one hand centralization poses as a tremendous threat, even decentralization can prove fatal in long run, as and when the number of transactions grew by leaps and bounds resulting in more complexities arising in cryptocurrencies.

 

Author – Bio

Nikunj Gundaniya, Product manager Digipay.guru, one of the leading wallet app development company.  He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.

 

 

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