The pandemic hit the financial system actual onerous however one factor that has witnessed an unparalleled growth throughout the identical interval is cryptocurrencies. Bitcoin, the world’s largest cryptocurrency token, crossed the $60,000-mark (roughly Rs. 42 lakhs) in April 2021, whereas Dogecoin, which began as a meme, has additionally captured everybody’s creativeness. Nonetheless, there’s extra to this story. A cursory look at information reveals that it is not simply the worth of cryptocurrencies but additionally their numbers which have seen huge development.
In keeping with a report on cryptopotato.com citing CoinMarketCap information, there are greater than 12,000 crypto tokens available in the market for cryptocurrency lovers to select from and put money into. To not overlook, the variety of firms accepting crypto tokens as a mode of cost can be steadily, if not quickly, rising.
Talking of the spike witnessed from September 2020 to September 2021, round 4,900 extra cryptocurrencies at the moment are out there in comparison with final 12 months. In September 2020, there have been roughly 7,100 cash available in the market. A 12 months later, that quantity has risen to over 12,000. There are two main causes for such huge development in not simply the worth but additionally the amount of cryptocurrencies.
The rising acceptance of crypto tokens amongst establishments and the Bitcoin growth have been instrumental in driving folks and different stakeholders in the direction of the market that now has a complete cap of over $2 trillion.
Amongst different causes, consultants see massive names similar to Tesla founder Elon Musk and Twitter boss Jack Dorsey’s endorsement of cryptocurrency as extraordinarily essential for instilling confidence.
The following query for a lot of is whether or not the huge spike within the variety of these tokens is an efficient factor. Extra tokens additionally correspond to a better risk of scams. Simply final month, cryptocurrencies price $22.2 million (roughly Rs. 165 crores) were seized by the UK police after a worldwide fraud scheme was unearthed. Those who fell prey to the rip-off have been unfold internationally.
Cryptopotato additionally reported that over $25 million (roughly Rs. 184 crores) have been misplaced to crypto scams amongst Australians solely within the first half of 2021.
Cryptocurrency is an unregulated digital foreign money, not a authorized tender and topic to market dangers. The data offered within the article just isn’t meant to be and doesn’t represent monetary recommendation, buying and selling recommendation or every other recommendation or advice of any type supplied or endorsed by NDTV. NDTV shall not be answerable for any loss arising from any funding based mostly on any perceived advice, forecast or every other info contained within the article.