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14 May 2020

Analysis: How Cryptocurrency Has Evolved

These past few years have seen many changes in the Cryptocurrency trading world. Earlier, there were only a few traders who were willing to provide cryptocurrency trading services to their clients. But today, you will see that most of the traders are providing cryptocurrency trading services.

This sudden change in the trading behaviours proves that the trading industry is evolving with Bitcoin Evolution. Back in 2017, the Finance Magnates Intelligence team conducted research that led to a result highlighting the fact that there were only 30 brokers all over the world who were offering any form of Cryptocurrency trading services.

Since then there were some major changes in the cryptocurrency trading industry. The liquidity of the cryptocurrency became easier. This made many traders and investors all over the globe interested in cryptocurrency trading.

 

Factors That Led to The Bitcoin Evolution

Bitcoin first surfaced in 2009, having a market value of almost close to $0. Being a Virtual currency, it took lots of effort to convince people about its advantages over real currency in the trading market. Slowly but steadily, Bitcoin became popular and reached a peak market price value of almost $20,000 in late 2017.

This hike in the market value of the bitcoin made all the traders around the world interested in the Bitcoin investment. Since then, the Cryptocurrency trading market has seen many factors that have influenced the price of the Bitcoins. However, among those factors, there were only a few that were constant throughout bitcoin's journey.

1) High volatility

Whether we are talking about the Bitcoins or other Cryptocurrencies, one thing remains common that is its volatility. Cryptocurrency is highly volatile in nature. It is very hard to predict what will be the value in the next minute. This nature of the cryptocurrency might seem a loophole in the cryptocurrency trading. But for the traders, it is an opportunity to earn high profits.

As a trader, we all know that Profit Is Directly Proportional to Risk we take. Hence, to earn more profit in less time frame, Traders have started investing in all forms of Cryptocurrency.

2) Smoother Transaction

As a trader, it feels very bad when you have to pay high transactional fees to the government for international transactions. But what if that cost can be omitted with the help of bitcoin transactions. Yes, you heard it correctly. Doing international transactions with Bitcoin is the same as doing Bitcoin transactions in the respective countries.

We all know that there are no platforms controlled by the Government
(as of now) for the Cryptocurrency transaction. So, why don’t we use that to our advantage?

3) Independence from Other Organisation

Since Bitcoin or any other cryptocurrency is not created by an individual entity like the Central Bank, you can be sure of one thing that the Bitcoins and other Cryptocurrencies are not politically influenced. As a matter of fact, the Government holds no authority on Cryptocurrency.

Due to its decentralized, liquidity, and leveraging factors, the bitcoins are gaining popularity at a rapid rate. The value of Cryptocurrencies is influenced by the creators who hold the majority of the cryptocurrency at their disposal. By having more Cryptocurrency in your hand, you can manipulate its price in the market. Thereby, negatively impacting other cryptocurrency holders.

 

Conclusion

You will find that the list of merchants is increasing day by day. You can now buy tickets, furniture, and other daily necessities with Bitcoins. This shows that people, as well as merchants, have come to understand about Bitcoins.

However, before you start trading with the Bitcoins and other Cryptocurrency, you must know that the Government has not accepted Cryptocurrencies as real money. So, trade at your own risk.

 

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