Cryptocurrency Boom : How to Avoid Risks and Govt violations?
This is the second part of the two episode series on the cryptocurrency boom, which is predicted to be the future of economics. Rocketed in value with a massive spike in the recent past, it currently occupies a large space in Southeast Asia, Latin America and the African economy. Galloping amidst the craze, investors are rolling in huge numbers to capture their share in the crypto market.
The rise of cryptobillionairs has fueled the demand and everyone around is exploring the options to buy crypto coins fantasizing to be millionaires in future. Amongst the thousands of cryptocurrencies in the market, the 5 star rated ones are: Ethereum (ETH), Bitcoin (BTC), XRP (XRP), Stellar (XLM), Cardano (ADA) and Dogecoin (DOGE). Bitcoin being the first blockchain-based cryptocurrency, it still remains the most popular and valuable.
Despite the buzz, there still remains a lot of speculations that linger around the trend. Right from volatility, risk factors to environmental concerns. Though decentralisation is the highlight of the cryptocurrency, the lack of central authority does create discrepancies. With anybody and anyone being able to create a cryptocurrency, the worth fluctuates with complete dependency on the number of users — demand/supply ratio.
Lack of regulations conceptualize a space which regulatory bodies fear of being misused. But one cannot deny its popularity and the roaring future ahead and that’s the reason we have governments across the world engaging in fruitful discussions that can devise an inclusive financial coexistence.
As of now, businesses across the US, Canada, Australia and European Union have welcomed bitcoin payments. El Salvador, a country in Central America also became the only country in the world to allow bitcoin as legal tender in June 2021. It won’t be long before we have a large number of enterprises opening up the market for cryptocurrency as a viable option for transactions. Meanwhile, few conservative governments like India are still evaluating the prospects of the digital currency and incorporating regulations like KYC and mandatory disclosures to allow inclusion on watch.
Another major concern raised alongside is the impact on the environment due to the production of cryptocurrency, which is also known as mining. The power consumed with every transaction, as several thousand computers get logged together, is still a question to ponder. However, crypto manufacturing companies claim to have come up with alternative renewable energy methods to solve this crisis.
Though concerns are many, cryptocurrency is here to stay and flourish as one of the promising profitable options in the world economy. Major economies like China creating its own digital currency, Digital Yuan speak in itself advocating the reality.
Through this second episode of the two-part series, Tell-A-Story explains to you the reasons for market volatility, how to identify risks, what are the top cryptocurrencies in the market, the Govt. regulations, and future ahead!
About the author: Tell-A-Story is a venture into video storytelling, founded by Suchithra Pillai, who comes with over 15 years of experience in the field of journalism, exploring and writing about people, issues, and community stories for many leading media publications in India and the United States. Video narratives along with thought-provoking content in less than 5 minutes, to engage and entertain the audience, is its preeminent vision.
Suchithra is a writing professional with 12 years of experience in content creation that spans around a wide range of business verticals, right from newspapers, magazines to websites, social media, and now Artificial intelligence. Nothing excites her more than having new acquaintances and writing stories about the wonderful journeys and unexplored talent out there.
In her spare time, you would either find her sketching, scribbling down some thoughts in paper trying to find a rhyme or story out of small things or expressing her love for dance on stage. : )