4 Factors Fueling The Growth of P2P Crypto Market
Since 2008 when Bitcoin was introduced, cryptocurrencies have gone through various versions of perception. Initially, they were considered just another frivolous tech project that would get lost with time. That has not been the case. Despite swings between highs and lows, such as the bitcoin rally to $20,000 (with corresponding upswings in other cryptos like ETH) and the dip to below $6,000, cryptocurrencies have continued to soar in popularity.
More people, by the hour, are signing up on exchanges, creating crypto wallets, trading, making payments for services, and sometimes, just storing their money. There are a lot of factors that have contributed to the growth of the P2P crypto market, below are four of them.
Eroding trust in traditional finance:
From the great depression of 1929 to the 2008 global economic recession, and now, the looming financial slump from the coronavirus pandemic, two lessons have kept recurring. They are:
Ø The centralized economy is too vulnerable to systemic risks. Every time there's a crash in a part of the system, it's the same story of wiped out investments, lost jobs and starting all over again. The decentralized p2p crypto market is a perfect solution to this problem, and more people are becoming aware of that.
Ø The people in control cannot be trusted to always do the right thing. Central bank governors and finance/economic ministers have made wrong calls in the face of challenging situations that have brought down the whole system. P2P crypto markets again solve this problem by removing the need to trust anyone or rely on their judgment.
Transactions cost and speed:
P2P crypto markets make it easy to transfer payments across borders and to anyone without any added costs. In some scenarios, either party in the transaction may wish to remain anonymous, and the blockchain makes this easy since a wallet address is the only "bank detail" that has to be provided.
In a similar manner to the years when the forex trading bug bit everyone, cryptocurrency trading is the in-thing now. People are making money (and logically, in some cases, losing money) by predicting the price movement of the volatile crypto markets and taking positions based on that. With P2P crypto markets, trades get concluded faster and in real-time, keeping up with volatility in the overall crypto markets.
Innovation by Exchanges
Platforms like Binance, etc making the P2P cryptocurrency markets more attractive to users through various incentives and innovations. On the incentive ends, trading competitions and bonuses encourage traders to do even more volume in trade and increase their deposits. On the innovation end, these exchanges are making the user experience more seamless by making their web and app interfaces easier to use, as well as making consistent improvements across platforms. On Binance for example, cryptocurrency can be purchased directly with bank credit or debit cards.
Whether or not cryptocurrencies will eventually replace fiat currencies is up for debate. What we can be sure of, however, is that cryptos are here to stay and grow.