Blockchain distributed ledger systems use cases go far beyond cryptocurrency and bitcoin. Central banks worldwide understand the importance of crypto technology. They also understand that adopting the technology will bring about transformational change to how financial management is done. The technology can make huge efficiency gains and give national and global financial management a quantum leap.
Cryptocurrency Prices, Charts, And Market Capitalizations | CoinMarketCap, a market research website, estimates that cryptocurrencies stand around 15,000. The bulk of investment is restricted to the top twenty cryptocurrencies. The cryptocurrency market is hugely volatile.
Trading in crypto-assets, including cryptocurrencies, NFTs, and others, is done on exchanges. Broadly there are two types of exchanges – decentralized where no KYC information is asked, and the investor can invest anonymously. Centralized exchanges capture investor KYC data.
Central Banks and governments in most parts of the world are against anonymous trading. Some jurisdictions like China have banned trading in cryptocurrencies completed.
Nearly all major central banks, though, want to leverage the technology and are in the process of creating national digital currencies. They are unanimous that cryptocurrency should not become a haven for money laundering.
I, therefore, believe cryptocurrencies will gradually gain wider acceptability as an asset class, but with government regulatory control.
The future in investing in blockchain technology-based assets probably belongs to other assets like NFTs and others. Blockchain-based digital networks will slowly and surely replace existing investment networks for investment. These networks will be more secure. Will cryptocurrencies become the dominant asset class that rides on these networks is a question on which the jury is still out.