- Millions have turned to crypto markets to make money.
- Cryptocurrencies are banned in only nine countries in the world.
- Analysts agree that Bitcoin and Ethereum will hold the top two positions for quite some time to come.
Cryptocurrencies, also known as digital currencies, have completely changed the landscape of modern finance. The global financial system has changed with the emergence of these innovative resources.
Bitcoin and other digital assets use revolutionary blockchain technology. A blockchain is a secure, public ledger that verifies all transactions.
This secure ledger, which cannot be changed or modified, provides validation for users and eliminates the need for a third party to provide a secure means of enabling the transaction in the middle, such as a central bank. This is where the term decentralized comes from.
Cryptocurrency trading has also become a popular investment option, with millions of people turning to crypto markets to make money. Of course, traditional markets like forex and stocks still hold some serious market share. However, cryptocurrency trading has become a lucrative way of making money for people.
As more people learn about cryptocurrencies and blockchain technology, they are becoming a common alternative to traditional currency and payment systems.
As a result, countries have started using Bitcoin as legal tender, and many multi-billion dollar Western institutions have also invested in digital assets.
Which countries are leading in this sector?
Since the early 2010s, Bitcoin and other digital assets have entered the mainstream conversation. As a result, cryptocurrencies are rapidly gaining ground around the world.
With that, the need for governments to draw up rules and laws to ensure their safe use has also become a subject of discussion. There are only nine countries in the world where cryptocurrency is completely banned:
On the other hand, countries such as the United Kingdom, Australia, Switzerland, and Indonesia have led the way in cryptocurrency adoption, paving the way for other countries to follow suit.
According to dappgambl.com, you can even gamble anonymously with cryptocurrency at anonymous casinos in some locations. So take a look if you want to gain a foothold in this emerging digital casino market.
Regulations that allow cryptocurrency developers to build their projects have led to positive economic outcomes for many of these countries. In some cases, it has allowed specific cryptocurrencies to flourish.
For example, Ethereum is the second largest cryptocurrency in the world by market capitalization, and some analysts even predict it will be the number one digital asset in a few years. Their head office is in Switzerland.
Largest cryptocurrencies in the world
As we have already discussed, Bitcoin is the most prominent cryptocurrency in the world. Not only is it the most invested in cryptocurrency, but it is also the oldest and most recognizable to people inside and outside the industry.
It has the largest market share and often drags the entire market up or down as it rises or experiences a drop in price.
Ethereum ranks second and is the project with the second largest market share. Ethereum offers a scalable solution and allows decentralized projects to use their platform to deploy their own cryptocurrencies.
For the past few years, Bitcoin and Ethereum have been the two big hitters in the industry, and this isn’t likely to change any time soon.
In 2018, Ripple (XRP) was the second largest cryptocurrency, but it lost much of its share following an SEC lawsuit. However, if resolved within an appropriate time frame within the next six months, this case could see XRP re-emerge as one of the top five cryptocurrencies.
Other cryptocurrencies that are part of the chasing pack include the USD stablecoin Tether, which is pegged to the US dollar, and other emerging projects, such as the Binance Coin (BNB).
Due to the ever-changing nature of the cryptocurrency market, the only really solid forecast that most analysts agree on is that Bitcoin and Ethereum will hold the top two positions for quite some time.
Both assets have a lot of institutional investment from hedge funds and investment banks. This means they are more of a safe hedge than other assets that may be newer projects without as much capital thrown into them.
However, with stricter regulations just around the corner, the landscape of the industry could change completely. Outside of Bitcoin and Ethereum, about a dozen cryptocurrencies could move into third, fourth, and fifth positions at any given time.
However, due to the volatility of the market and the way it works, don’t be surprised to see a few different coins making it to the top ten over the next 12 months.