The world that we live in is constantly evolving with new innovations and technologies that have a profound effect on our lives. One such recent innovation that is currently driving changes in the financial world is the emergence of cryptocurrencies. Said to be the next big thing in the Fintech industry, cryptocurrencies are digital or virtual currencies that use the techniques of cryptography to enhance the security and privacy of online transactions. But the defining feature of cryptocurrencies is the fact that they are all decentralized. This means that there is no central body or governing body that regulates the use and pricing of these cryptocurrencies. Instead, the value of the cryptocurrency is entirely decided by the market participants.
Cryptocurrencies Market Trends
There are many reasons why cryptocurrencies will become part and parcel of daily lives in the new digital globalized economy. The blockchain technology which forms the foundation of cryptocurrencies will help to make online transactions cheaper and more efficient, hence leading to a more energized economy. This improvement in efficiency will no doubt provide the incentive for companies to improve their services. The inefficiencies of traditional payment methods will no doubt force payment processors such as banks and credit card companies to either adopt this new technology or run the risk of becoming an obsolete institution in the new world economy.
Over the past few years since Bitcoin was first introduced to the world, interest in cryptocurrencies has been growing. The most well-known and frequently traded cryptocurrency CFD is Bitcoin. When Bitcoin was first introduced to the world in 2008, it drew a mixed reaction. Nevertheless, over the years, Bitcoin has become the poster child of cryptocurrencies, with its value exceeding the price of gold today.
Today, many advocates of cryptocurrencies argue that digital currencies are far more superior to traditional payment mechanisms as they are far more secure and global in nature. In addition, they operate outside the control of any government hence freeing cryptocurrencies from any governmental interference.
Cryptocurrencies Market Capitalization
Since the birth of Bitcoin, there has been a proliferation of hundreds of cryptocurrencies on the internet today. At the last count, there is close to 900 different cryptocurrencies being sold on the digital currency web bazaar. Nevertheless, in terms of market capitalization, only a handful have breached the $1 billion threshold, with Bitcoin holding the top spot. Below is a list of the top 10 cryptocurrencies based on their market capitalization as of 30th October 2017:
1. Bitcoin (Ticker Symbol: BTC)
Market Capitalization: $100,959,015,555
2. Ethereum (Ticker Symbol: ETH)
Market Capitalization: $29,195,228,623
3. Ripple (Ticker Symbol: XRP)
Market Capitalization: $7,840,281,945
4. Bitcoin Cash (Ticker Symbol: BCH)
Market Capitalization: $7,632,509,036
5. Litecoin (Ticker Symbol: LTC)
Market Capitalization: $3,028,397,750
6. Dash (Ticker Symbol: DASH)
Market Capitalization: $2,166,736,183
7. Neo (Ticker Symbol: NEO)
Market Capitalization: $1,833,767,000
8. NEM (Ticker Symbol: XEM)
Market Capitalization: $1,774,017,000
9. BitConnect (Ticker Symbol: BCC)
Market Capitalization: $1,648,738,188
10. Monero (Ticker Symbol: XMR)
Market Capitalization: $1,357,407,302
Despite the uncertainty and skepticism surrounding cryptocurrencies, there is no denying the fact that cryptocurrency CFD trading has become a booming segment of the financial sector.