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Crypto industry – how much is it worth?

The story of the crypto industry is one of the best telltale examples of rising up from almost nothing to something so phenomenal that the whole world is talking about it. When the crypto industry was first introduced with the launch of Bitcoin in 2009, a major part of the world did not take time to write it off. Cut to 2022, a little over a decade, a leading bank has officially declared that crypto holds the potential to replace fiat by the coming decade. Not just that, the #1 crypto, Bitcoin, has already received legal tender as that of a fiat from not one but two countries. It won’t be exaggerating to claim that how much the crypto industry is worth is making waves.

How much is it worth?

Well, the crypto industry grew to a whopping $3 trillion industry in the year 2021. It’s no mean feat for an industry that was introduced a little over a decade back and is still in its nascent stage. Also, it must be mentioned that the crypto industry did not receive a wide welcome during its launch- rather mostly flak and criticisms. Most financial experts had made official declarations that the crypto bubble would burst soon. However, the crypto industry managed to prove them all wrong by reaching the awe-inspiring $3 trillion mark in 2021.

The crypto industry is undoubtedly one of the most phenomenal revolutions of the 21st century. Some experts compare the crypto revolution with the internet revolution of the 20th century. However, over time, the crypto industry has shown an even faster growth in comparison to the internet revolution.

The 2022 crash

Cut to 2022, the crypto industry suffered two back-to-back crashes in May and June. The crash brought the booming industry down to below $1 trillion in just a few days, thereby unleashing panic all across the crypto industry. In other words, the two consecutive crashes plummeted the crypto market down to four-and-half-year low. As of 2022 November, the crypto industry is still reeling from the after-effects of the devastating crash, hovering at $848.32 billion.

Crypto will rise again

There is no denying of the fact that the crypto industry is currently passing through a terrible bearish phase. However, several crypto experts have predicted that the crypto industry is projected to witness a solid 5x growth by the coming decade.

Why would crypto rise?

There is not one but multiple reasons as to why several experts are optimistic about the proliferating growth of crypto in the coming years.

Market is maturing

Speculations are rife that the recent bearish phase is an indication that the crypto industry is maturing. Every asset market goes through both bear and bull phases- and that’s the normal course of operation for the market. If we look at the historical trends of the traditional asset markets, we will find that a bearish phase is not uncommon after a tremendous surge. This is how the market enters the correction mode to balance itself.  In other words, such a phenomenon is a sign of a matured market.

Much to the relief of crypto believers, the crypto market is showing signs of maturity in a similar way. The crypto industry reached its peak in the last half of 2021- the highest the industry had ever reached. The crash happened after a few months of the peak. Several experts have stated the recent crash indicates that the crypto market too is going through a correction mode to reach a balanced state. It shows that the market is maturing and is gradually establishing its footprint in the mainstream finance world.

Also Read: buy bitcoin now

Wider adoption

Even the crypto industry naysayers would agree to the fact that crypto adoption is rising, and that too at an exponential scale. The current global population is 7.9 billion of which 106 million already own crypto. The crypto industry is poised to witness further adoption in the coming years. One of the major aspects of the crypto market is that the crypto industry has succeeded in attracting both retail and institutional investors.

Around 40 esteemed firms across the world have their investment in the crypto industry. Over 15,000 businesses across the world accept crypto payments today. In fact, crypto payments are accepted by almost every industry out there. While the crypto industry was launched with one single crypto, Bitcoin, in 2009, after a little over a decade, the crypto market is bustling with over 20,000 cryptos. The number of crypto exchanges has also grown at a massive rate over the years.

It’s true that crypto is still banned in several countries. But a government ban has not been able to stop the citizens from these countries from taking part in the crypto revolution. One of the brightest examples would be India. Crypto is yet to achieve legal status in the country. But, look at any chart on the number of crypto users and you will see Indian users dominating the list with élan.

Reshaping the global fiscal landscape

One of the major reasons behind the proliferating growth and rise of the crypto industry is crypto’s ability to revolutionize the fiscal landscape globally. Best part is, the world at large has now acknowledged that crypto holds the potential to democratize the financial ecosystem and create an even ground for users. The decentralized aspect of the crypto industry eliminates the need of intermediary fees and involvement of centralized authorities. This way, the crypto industry has facilitated access to financial services to several people who were compelled to stay away from financial services given high banking fees.

The crypto industry also holds the potential to revolutionize the business landscape. Crypto-based transactions make way for faster and more economical transactions, thereby saving businesses on huge processing costs. This particular benefit is further helping several businesses, especially, the small-sized ones, to aspire for global reach at lower cost.

Final words

Despite all the revolutionary features, crypto is handicapped with the problem of wild volatility. This is a major reason why some financial experts are still apprehensive about the sustainability of crypto. However, the IMF and national governments worldwide are taking proactive steps to introduce regulation that would hopefully bring a certain degree of stability in the crypto industry.

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