Cryptocurrency is a new age financial innovation that aims to not only replace cash but also to support existing systems. They are divided into categories based on the design goals of various Cryptocurrencies (Digital Cash coins, Payment Infrastructure tokens, Securities tokens, Utility tokens, general platform tokens, and others), as well as the Market capitalization of cryptocurrencies.

Market Overview

Cryptocurrencies, which are designed to be used for peer-to-peer transactions without being held accountable to any government or central bank, are the most recent financial innovations being investigated not only for the reasons for their existence, but also for potential risks and opportunities in the financial industry. Thousands of cryptocurrencies exist, each with a unique design goal. These technical requirements are to provide a digital currency alternative to cash (Bitcoin, Monero, and Bitcoin Cash), to support low-cost payment systems (Ripple, Particl, and Utility Settlement Coin), to support peer-to-peer financial transactions by creating tokens, to facilitate secure access to a good or service in peer-to-peer trading, and to support the underlying platform or protocol. These design goals will not be exhaustive because new cryptocurrencies are created every week. Blockchain is the underlying technology that underpins the majority of cryptocurrencies. The Cryptocurrency Market is divided into segments based on the market capitalization of numerous cryptocurrencies. Cryptocurrencies intersect with key aspects of the monetary and financial systems. Because of their rapid growth, complexity, high volatility, and potential for facilitating illicit activities, regulators and policymakers around the world are concerned about their inclusion in existing systems.

Market Trend

Because of the ever-changing nature of this market, with new cryptocurrencies being created every week, it is difficult to estimate the size of the cryptocurrency market. The cryptocurrency market is complicated by a wide range of market exchanges for cryptocurrency trading that are spread across the globe due to their privacy protection features, as well as rapid growth, extreme price volatility, and market illiquidity. The market capitalization of cryptocurrencies over time demonstrates how volatile the market's price is. For example, during the month of January 2018, the estimated cryptocurrency market capitalization ranged between 400 billion USD and 800 billion USD, from 566 billion USD at the start of the year to 128 billion USD by the end of the year. In terms of transaction volumes, bitcoin alone had the highest number of 200,000 average daily transactions.

Market Challenge

Cryptocurrency has the potential to transform and revolutionise compliance-free peer-to-peer and remittance transactions; however, in order to benefit from cryptocurrency, end users must overcome certain challenges related to security, privacy, and control. Because cryptocurrency transactions are recorded in the blockchain, a distributed public ledger, hackers have a large attack surface to gain access. If this public ledger is used to store sensitive contract-related information or payment data, replicating the file may make it easier for hackers to gain access to it. If a key is compromised, it can be used to access the database in both a hub-and-spoke and a distributed model.

Market Main Players

Canaan Creative (China), Bitmain (China), NVIDIA (US), Xilinx (US), Intel (US), Advanced Micro Devices (US), Ripple Labs (US), Ethereum Foundation (Switzerland), Bitfury Group (Netherlands), Coinbase (US), BitGo (US), Binance Holdings (China) (China). Bitstamp (Luxembourg), Ifinex (Hong Kong), Ledger SAS (France), Xapo (Hong Kong), and Alcheminer (US) are a few of the major companies that dominate the Cryptocurrency market.