In our today’s(July 19, 2018) snapshot analysis, we observed the performance of the top cryptocurrencies. Despite the extreme bearish market of 2018, the average price gain of the top viewed cryptocurrencies has been 8-10% when compared with the prices of 2018 till last week. This has given a much-needed relief to the crypto investors and also has risen above the rumors about crypto failure.
Let’s get back once again to some basics around Cryptocurrency and the need of the Decentralization
Financial markets today are highly integrated, competitive, distributive and complex. Blockchain technology is all set to radically transform global trade, institutions and firms that govern it.
Cryptocurrency has led to a colossal change in the financial world. As this technology finds a new way to upheaval the way we design, make, deliver and coordinate the use of goods and services globally, entrepreneurs have started using artificial intelligence to raise funds for their business.
The traditional financial system lacks intelligence and analytical functionality to meet the growing needs of the modern day financial network. Financial institutions like banks have not been able to cater to the financial needs of the people. Rising incidence of defaults, scams make it wary of extending loans to small businesses and to people belonging to lower socio-economic strata. Financial inclusion is another persistent challenge in traditional banking. Companies have to take active decisions based on real-time information.
Stakeholders rely on financial systems for real-time, actionable data to plan, define, build and drive performance and growth of their interests. The reliability of data and its application have revolutionized the financial markets. The need of the hour is to boost the traditional banking system to meet the needs of the growing population and adopt fintech to increase the efficiency of the system.
Cryptocurrency Use case
Blockchain Technology represents a revolution in how information is gathered and stored. Cryptographic keys provide a new and secure way to manage digital identity that avoids user from sharing too much vulnerable personal information. It automatically creates a record of who has accessed the information and set controls on the permission required to obtain information.
World Economic Forum has stated that Blockchain, or distributed ledger technology, could soon give rise to a new era of the Internet even more disruptive and transformative than the current one. Blockchain’s ability to generate unprecedented opportunities to create and trade value in society will lead to a generational shift in the Internet’s evolution, from an Internet of Information to a new generation Internet of Value.
Beyond just being a trusted repository of information, it could enable regulatory compliance in code form i.e. how blocks are made valid could be a translation of government legal prose into digital code.
The most speculated question: Is it a Bubble?
The nascency of cryptocurrencies with the unprecedented rise in its popularity had the market capitalization of $42 billion in July 2016 which has crossed $294 billion today, at the press time. These currencies are a trivial fraction of all digital platforms but have experienced an exponential growth.
In the recent years, cryptocurrency has led to an emergence of a new speculative behavior with a sudden influx of people calling themselves as crypto- traders and crypto- experts. Over the years, society has been split into two polarised personalities, one that is infatuated by its idea and others that consider it as another bubble.
There was around $3 trillion in the game when the dot-com bubble burst but cryptocurrency is still in its nascent stage. Many investors are speculating that it is the largest financial bubble that could decimate the financial market. Though, it’s the biggest tech revolution that can transform the way we invest, send money and conduct business.
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