Cryptocurrency development is the fastest growing digital investment business now. It has a broad appeal despite differences in demographics, investment habits, and business goals. It can be bought or sold on-demand by analyzing the prices on a real-time basis. Cryptos can be characterized as highly liquid, low minimum investment norms, a great way to hedge risks, and viewed as an alternative risk asset.
The advantages of using cryptocurrencies are that it is highly secure, not traceable, low transfer costs, and exists outside government regulation in most of the countries currently. The main users of cryptocurrencies are financial institutions, central banks, consumers, retail investors, and businesses.
Recently, Bitcoin broke the $15000 mark due to a huge increase in the number of investors, which is its highest level since January 2018. The main markets for cryptocurrencies are the USA, Europe, and the Asia Pacific. Cryptos can be used in different industries like BFSI, retail, media, gaming, healthcare, travel, real estate, logistics, and education. The biggest cryptocurrency exchanges are Coinbase, Bitstamp, Poloniex, OKEx, and Bitfinex.
Many millennials feel that they can manage their finances without opening a bank account and are open to trying out new alternative investment strategies in the market. The largest number of Bitcoin investors are in the age group of 25-34. Retail investors want a safe way to store their crypto. Financial managers and advisors can manage the crypto allocations of their clients through custodial platforms or third-party separately managed account services.
Bitcoin has shown more growth and gains than stocks in the S&P 500. Latest technologies like Artificial Intelligence can be used to build crypto indices, rankings, and price predictions similar to how a stock market works. Crypto is getting a lot of institutional funds from big companies like Facebook, PayPal, Square, JPMorgan, Whole Foods, Visa, Uber, Mastercard, and Samsung. It will help in boosting crypto as a mainstream market validation. Digital assets will become more integrated into the monetary system with the adoption of central bank digital currencies and stablecoins used in decentralized finance projects.
Currently, there are two major problems in the world’s financial system. The US Dollar is no longer the world’s reserve currency, and there has been an uncontrollable growth in debt in the balance sheets of central banks due to poor economic planning. Cryptocurrencies can act as the leader of the new financial shift.
The Organization for Economic Cooperation and Development (OECD) is planning to come out with a tax reporting framework for crypto assets next year based on the common reporting standard (CRS). This will be implemented to ensure tax transparency concerning the income derived from the sale of crypto assets. It will be followed by countries across the G20 to strengthen the disclosure for digital asset transactions and digital currency taxation.
The European Union (EU) has planned a comprehensive crypto regulation by 2024, and the rules will be framed by the European Commission soon for regulating the holding of crypto assets by the financial sector.
The Securities and Futures Commission (SFC) of Hong Kong is going to introduce a new licensing system to regulate all the operating crypto exchanges and virtual asset trading platforms.
The main challenges to the growth of Cryptocurrency development are the regulatory uncertainty regarding whether digital assets are classified as securities by the authorities and extreme market volatility. If there are clear and uniform regulations all over the world, it gives the stakeholders, miners, and developers the confidence to invest in Cryptocurrency development and make solutions for the next generation.
Hence, the time is right now to launch your own cryptocurrency and increase your market value by capitalizing on the buying pressure witnessed in digital assets recently. It will just be a matter of time before investing in crypto assets becomes the number one choice for a safe haven.
