- The cryptocurrency exchange has always proven for being an impetus in introducing the cryptocurrencies to the people and to engage them in trading them.
- Initially, crypto was mainly for retail investors where they were able to invest in the digital investors.
- The rise of crypto and Blockchain technology is quite similar in comparison to the rise of the Internet in the world.
Cryptocurrencies, a decentralised financial system that meant to revolutionize the conventional fiat currency system, has now over 42 million users worldwide. For instance, when the mysterious Satoshi Nakamoto first launched Bitcoin in the year 2009, people could only buy a burger or a pizza with thousands of it. Over the years, the Bitcoin network has rapidly increased. Now, after over a decade, a single Bitcoin is priced at approximately 10,000 US Dollars. People now treat Bitcoin as digital gold. This is how far cryptocurrency has come. However, cryptocurrency has threatened and challenged countless industries in its journey. It is said that over the next decade, they are likely to emulate with important financial institutions. The crypto exchanges are sure to capture the growth.
Exchanges Established Themselves For Retail Demand:
The cryptocurrency exchange has always proven for being an impetus in introducing the cryptocurrencies to the people and to engage them in trading them. Initially, crypto was mainly for retail investors where they were able to invest in the digital investors. However, a few years ago when the institutional investors could also do the same. This made the retail-focused exchanges to establish themselves for retail demand.
The Analogy Between Internet And Cryptocurrency:
The internet was a revolutionary technology that completely changed the way people used to talk, communicate, buy things, and so on. Some people think the rise of crypto and Blockchain technology is quite similar in comparison to the rise of the Internet in the world. However, if the analogy is considered in all terms then, the Internet had reached 10% of Americans by 1995, but as per reports the user adoption of crypto is only 5%. This signifies that although Cryptocurrencies have come a long way from where it used to be, it is yet to experience growth like that of the Internet or in other words ‘the hockey stick’ growth.
Demographic Aspect Of Cryptocurrency’s Growth:
It is more likely that people aged 18 to 39 and people living in urban and suburban areas are to inherit digital assets in the coming decade. It is expected that Millenials are more likely to own a digital asset capital worth $68 trillion. This because of the low bond yields and high assets price, they find this an innovative way to store and invest their wealth.
Issues like scalability, price volatility, privacy, and security and difficulty in using them are often considered as a hindrance to its widespread adoption. Nevertheless, they are focusing on resolving these issues. Currently, based on Bitcoin’s growth history, analysts assume that by 2030, user adoption will increase to 20 to 50 percent.