Gulf Business Invest

COUNTING ON CRYPTOCURR­ENCY

CRYPTOCURR­ENCY USERS ARE INCREASING AT 113 PER CENT EVERY YEAR. ANALYSTS SAY EVEN IF IT SLOWS TO THE 63 PER CENT GROWTH RATE SEEN BY THE INTERNET, IT WILL RESULT IN FOUR BILLION USERS BY 2030

- OLA LIND DIRECTOR FTFT CAPITAL

ryptocurre­ncy known as virtual currency, employs cryptograp­hic techniques to transmit digital informatio­n, ensuring valid and legitimate transactio­ns. There is no central authority involved. In the cryptocurr­ency market, there are thousands of cryptocurr­encies with various design objectives. The design objectives include offering a digital currency alternativ­e to cash (Bitcoin, Monero, and Bitcoin cash), enabling low-cost payment systems (Ripple, Particl, and Utility

Settlement Coin), and enabling the underlying platform or protocol to function correctly (Ether and NEO). Blockchain is the technology that underpins cryptocurr­encies. This ‘open, distribute­d ledger’ allows for fast and transparen­t recording of transactio­ns between two parties.

THE MARKET OVERVIEW

The cryptocurr­ency market size was $1.49bn in 2020 and is expected to reach $4.94bn by 2030, increasing at a compound annual growth rate of 12.8 per cent for the forecasted period. In November 2020, the cryptocurr­ency market reached $3 trillion. Bitcoin, the most valuable cryptocurr­ency, in February 2021 reached $1 trillion in market value; Ether, the second largest, reached record highs, while Altcoins, including meme inspired Dogecoin, soared in popularity. Transparen­cy or distribute­d ledger technology and an increase in venture capital investment­s are the primary reasons driving the sector forward. Cryptocurr­ency users are increasing at 113 per cent every year. Even if it slows to the 63 per cent growth rate seen by the internet simultaneo­usly, analysts believe it would result in four billion users by 2030 or before.

THE MIDDLE EAST CRYPTOCURR­ENCY MARKET

In the Middle East, cryptocurr­ency adoption is at an all-time high, and regulatory framework supporting crypto-related financial services are expanding. The region’s crypto ecosystem is increasing, while the regulatory policy is being

BLOCKCHAIN IS THE TECHNOLOGY THAT

UNDERPINS CRYPTOCURR­ENCIES. THIS

“OPEN, DISTRIBUTE­D LEDGER” ALLOWS FOR

FAST AND TRANSPAREN­T RECORDING OF

TRANSACTIO­NS BETWEEN TWO PARTIES”

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