The future of the crypto-currency market: Crypto-currency and large corporations.
What is the future of the crypto currency market, if today it is the fastest growing financial market? The total market capitalization of the crypto-currency market fluctuates within 700.00 billion, given the fact that as of January 1, 2017, the market capitalization of this market was 17.7 billion.
This market growth was provoked simply by incredible advertising of Bitcoin, in connection with which more and more investors showed their interest in this asset and its counterparts. Every day throughout the 2017 year, the mass media only talked about new tops of Bitcoin’s price, which could change easily by several thousand US dollars in just one day.
How has the crypto currency market changed in 2017?
The growth of market capitalization is mainly speculative, since the current crypto-currencies are not backed up and do not have such a high real value. Growth of interest and expansion of the use of crypto-currencies have led to an increase in liquidity in the market, and in the future, a sharp change in the price of crypto currency can become quite rare, which will allow traders to more easily regulate their risks in the digital currency trading. The growth of bitcoin liquidity was supported by the launch of futures trading on CBOE and CME Group in December 2017.
The main deterrent to the stronger growth of the market for crypto-currencies were the statements of South Korea in late 2017 on the limitation of speculative activity through the introduction of certain bills. In early 2018, South Korea announced its readiness to ban the trade in crypto currency, which put considerable pressure on the crypto currency market, since South Korean exchanges accounted for about 20% of trading volumes in bitcoin.
The future of the crypto-currency market: crypto-currency and large corporations
In the first half of January, 2018, Kodak announced the creation of its own crypto currency, against which the company’s shares rose by about 120%. The purpose of creating its own crypto currency is justified by protecting the interests of users of the company’s services. Kodak will create an encrypted user database that will allow photographers to sell their work and protect copyrights. The platform will work on the basis of a smart contract, and the author will immediately receive payment for their work in the form of KodakCoin coins. The main advantage of KodakCoin is that it will be backed up by the services of the company. In other words, the company’s crypto currency will be secured.
Facebook founder Mark Zuckerberg in 2018 will study digital crypto currency. To date, the true motivations of the founder of Facebook are unknown, but perhaps this is due to the improvement of payments through the Messenger app. To date, Facebook’s market capitalization exceeds $ 520 billion. Imagine, if a message about launching its own crypto currency will have the same effect as Kodak’s, the market capitalization could exceed $ 1 trillion.
Conclusion
To sum up, one can safely say that the future of the market is ambitious. At the same time, it is possible that the introduction of its own crypto-currency from the side of large corporations will be able to displace the leading crypto-currencies from their positions and even take the glory from Bitcoin.
Taking Kodak as an example, one can conclude that a change in the price of its own crypto currency has a direct impact on the value of the company’s shares, against which the option of replacing shares with a crypto currency is possible. As a result, the stock markets in theory may cease to exist.
Alexander Sivtsov
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