Bill Gates once rightly said, “The future of money is digital currency.” Digitalization has evolved massively over the years. With many types of technology taking a front seat, blockchain technology is making inroads across many regions. Who would have thought few years down the line that paper money could be soon replaced by digital money and currencies? Well, that’s a reality now! With cryptocurrency, a revolution in digital currency has already begun.
Cryptocurrency came into prominence in 2009 but is in the news since 1983. David Chaum, a cryptographer, developed eCash, a cryptographic system that can be utilized for making digital transactions. However, the term cryptocurrency was coined in 1998. In 2009, Bitcoin emerged as the first cryptocurrency, and the rest is history. Although cryptocurrency did not gain much prominence in its early years, it revolutionized the entire financial ecosystem in its later years. It is largely deregulated and has no binding of regulatory authorities.
How has 2021 Fared So Far for the Cryptocurrency Market?
2021 has been a roller coaster ride for the cryptocurrency market till now. At the beginning of the year, a tweet from the Tesla founder, Elon Musk generated great hype for a cryptocurrency known as Dogecoin. Its value nearly quadrupled in 2-3 months. Furthermore, 2021 revealed how volatility could affect cryptocurrency. The price volatility of Bitcoin swayed to its highest limit ever since April 2020 in May 2021. The annualized 30-day volatility was 116.62 percent in May.
In another development, Daymak Spiritus will become the world’s first electric car mining cryptocurrency. The car will be equipped with high-tech mining hardware and blockchain technology that will have crypto technology into the user interface. Thus, all these developments will have a prominent role in influencing the growth of the cryptocurrency market.
What is the Environmental Impact of Cryptocurrency?
The mining required for cryptocurrencies consumes a lot of electricity. This factor has invited backlash from various sections. Cryptocurrency mining generally depends on electricity generated from fossil fuels. This factor can prove to be a hindrance for the growth of the cryptocurrency market. Some statistics regarding the overwhelming electricity consumption are as follows:
- Around 65 percent of bitcoin miners are in rural China for mining purposes as electricity is cheap in these areas. However, most electricity is generated from coal, and hence, this factor has a serious impact on the environment.
- The bitcoin network generates 11.5 kilotonnes of e-waste every year.
- Ethereum, another cryptocurrency, uses as much power as the entire country of Qatar for mining.
Seeing the environmental impact of cryptocurrencies, Tesla recently banned bitcoin transactions for Tesla. These aspects may damage the growth of the cryptocurrency market to a considerable extent.
Prominent Trends that will have a Vast Impact on the Cryptocurrency Sector:
- Non-fungible tokens (NFTs) will go mainstream and are gathering substantial traction.
- With many countries devising numerous regulations on the unstructured cryptocurrency market, crypto tax is one of the prominent points on the agendas of many nations.
- 5G technology will also help in the overall development of the cryptocurrency market to a substantial extent.
Many services come under the ambit of cryptocurrency. The prominent ones are the crypto asset management services and the crypto automated teller machine services. As the popularity of cryptocurrency rises, the demand for these services also expands exponentially. Let’s explore what exactly are crypto asset management services and crypto automated teller machines as we delve deeper into the cryptocurrency arena.
Crypto Asset Management Services: It is a process of managing digital assets for rendering efficient service through piling and maintaining digital ledger through a network involving cryptocurrencies, blockchain companies, and others.
Key Drivers of the Crypto Asset Management Services Market
- The rising attraction of a large chunk of the global populace toward cryptocurrencies will bring immense growth prospects for the crypto asset management services market. The players help these investors derive benefits from crypto without worrying about technical difficulties.
- These currencies are difficult to understand and may seem to be complex for a new user. The crypto asset management services market players help the newcomers gel with the regular cryptocurrency procedure.
Crypto Automated Teller Machines: A crypto automated teller machine (ATM) is a kiosk that enables the public to trade cryptocurrencies in return for a minimal charge. A typical crypto ATM comprises a monitor, a receipt printer, and a QR scanner.
Key Drivers of the Crypto Automated Teller Machines Market
- The similar functionalities of a traditional ATM and the ease of operations will bring immense growth prospects for the crypto automated teller machines market.
- Crypto ATMs can complete the transactions in a jiffy. As soon as the money is inserted in the ATM, a purchase is completed without any technical difficulties. Such benefits bring promising growth for the crypto automated teller machines market.
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