The pandemic hit the economic system actual exhausting 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. Nevertheless, there’s extra to this story. A cursory look at knowledge reveals that it is not simply the worth of cryptocurrencies but additionally their numbers which have seen huge development.
Based on a report on cryptopotato.com citing CoinMarketCap knowledge, there are greater than 12,000 crypto tokens available in the market for cryptocurrency lovers to select from and spend money on. To not neglect, the variety of corporations accepting crypto tokens as a mode of cost can also be steadily, if not quickly, growing.
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 yr. In September 2020, there have been roughly 7,100 cash available in the market. A yr 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 quantity 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 large names resembling Tesla founder Elon Musk and Twitter boss Jack Dorsey’s endorsement of cryptocurrency as extraordinarily essential for instilling confidence.
The subsequent query for a lot of is whether or not the large spike within the variety of these tokens is an effective factor. Extra tokens additionally correspond to the next risk of scams. Simply final month, cryptocurrencies value $22.2 million (roughly Rs. 165 crores) have been seized by the UK police after a world fraud scheme was unearthed. Those who fell prey to the rip-off have been unfold the world over.
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 knowledge supplied within the article shouldn’t be supposed to be and doesn’t represent monetary recommendation, buying and selling recommendation or every other recommendation or suggestion 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 suggestion, forecast or every other data contained within the article.