image of bitcoin cryptocurrency

Introduction

The modern age has brought on some ground-breaking developments in the world today, most especially in the tech space. Some of the most popular of these innovative, cutting-edge technologies include autonomous vehicles, online retail markets, and perhaps the most intriguing cryptocurrency. Since its official introduction in 2009, cryptocurrency has stirred debates and controversies among the global populace. Some see this development as the next big step to financial liberation, a decentralized peer-to-peer system that may ultimately render banks and financial institutions obsolete. Others see cryptocurrency as a “shady” development that may well aid smooth illegal transactions due to its prioritization of anonymity.

While both these conceptions cannot be dismissed, a significant part of the world supports the rise and adoption of cryptocurrency and blockchain systems. This, however, begs the question, “does cryptocurrency present more benefits than threats?” Before addressing the elephant in the room, let us properly analyze the types of cryptocurrency, growth, adoption, and emerging startups with high-growth potential in this field.

Ever since the very first cryptocurrency (Bitcoin), many more variants of this virtual coin have emerged, owing to the accelerated growth and adoption of Bitcoin globally. 

These digital currencies are not created or backed by any government, nor does anyone have absolute control over them. Let’s see a list of some of the most common types of cryptocurrency used globally today.

  • Bitcoin
  • Bitcoin cash 
  • Litecoin
  • Ethereum
  • Ripple
  • Stelar
  • NEO
  • Cardano

The above is but a shortlist of the most commonly traded cryptocurrency in the world today. In terms of market capitalization, adoption, and popular opinion, however, Bitcoin, Ethereum, and Ripple remain the top 3 cryptocurrencies leading the global market.

Research carried out on the cryptocurrency market reveals the following information.

  • The cryptocurrency market was valued at US $1.03 billion in 2019
  • The market is projected to grow at a Compound Annual Growth Rate of 6.18% between 2019 and 2024
  • The estimated market valuation by 2024 is US $1.40 billion
  • The total market capitalization has hit an all-time high of US $1.3 trillion

While the accuracy of this data is dependent on data sources, a unanimous conclusion shows that cryptocurrency continues to rise steadily in the world today with no limits in the foreseeable future. The vast growth can be majorly attributed to the 2008 financial crisis when the trust in banks, financial institutions, and government melted away, particularly among the populations of Europe and the USA. This proved to be more impactful on the younger, more tech-savvy demographic. It is from amongst this group that Bitcoin emerged.

A central tenet of cryptocurrencies is to avoid using banks or financial institutions to send and receive money. Through this, third-party guarantors (such as banks) are dismissed from the process. While this is perceived by many as a cheaper, more liberal way of operating financial transactions, a side-effect of this is the lack of trust and solid guidelines provided by these third parties.

Another propeller of the growth of cryptocurrency is the activities undertaken by speculators, who harness its volatile prices to make significant profits. This is especially seen in the recent investments made by prominent economic characters (like Elon Musk) in cryptocurrencies.

The rise of cryptocurrency has also birthed some interesting startups that have the potential to become world-class unicorns in no time at all. Let’s look at some of them.

BlockFi

BlockFi is a secured non-bank lender that provides USD loans to crypto-asset owners who collateralize the loan with their crypto-assets. Its goal is to deliver transparency, liquidity, and efficiency to digital financial markets by designing products that meet the needs of consumers and companies of the world. They leverage a sophisticated infrastructure that integrates with multiple blockchains and plan to expand their product set based on their retail and institutional client’s needs.

Highlights

Founders: Flori Marquez and Zac Prince

Date of Incorporation: August 2017

Headquarters: Jersey City, New Jersey, United States

Funding Amount: US $158.7 Million

Number of Investors: 32

Funding Status: N/A

ThunderCore

ThunderCore is a fast, high-performance EVM-compatible public blockchain that brings scale to decentralized applications with higher throughput, quicker confirmation times, and lower costs. Their result maintains fully decentralized trust while significantly improving performance.​

Highlights

Founder: Chris Wang

Date of Incorporation: 2017

Headquarters: Sunnyvale, California, United States

Funding Amount: US $50 Million

Number of Investors: 21

Funding Status: N/A

BRD

BRD develops, designs, and markets financial software. It provides a platform that delivers crypto purchasing, commercial register, credit rating information, management, news, trading, and merchant services globally.

Highlights

Founders: Aaron Voisine and Adam Traidman

Date of Incorporation: 2015

Headquarters: Zurich, Switzerland

Funding Amount: US $54.8 Million

Number of Investors: 10

Funding Status: Series Unknown

Compound

Compound is an open-source interest rate platform that develops new financial applications for developers. Its protocol is a popularly used framework built on Ethereum, with thousands of users and dozens of applications integrating Compound. They provide a web interface that analyzes and adjusts money market interest rates based on asset-specific supply and demand.

Highlights

Founders: Geoffrey Hayes and Robert Leshner

Date of Incorporation: August 2017

Headquarters: San Francisco, California, United States

Funding Amount: US $33.2 Million

Number of Investors: 11

Funding Status: Series A

Conclusion

The development of cryptocurrency in the world has brought on various opinions on the part of the populace. Today, however, the majority of people globally are avid advocates of the opportunities and freedom presented by this exciting financial revolution. This is not to say there are no demerits to the adoption of cryptocurrency (as some parts of the world don’t allow it), but that the pros of cryptocurrency currently seem to be significantly more than the cons. With this in mind, the world is about to witness a massive shift in the flow of financial transactions, from traditional banking methods to decentralized peer-to-peer systems

For more extensive analysis and Market Intelligence reports feel free to approach us or visit our website: Venture Capital Market Intelligence Reports | VCBay.


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Stephen conducts business research and writes about the startup ecosystem on VCBay. He is a 3rd-year Business administration student from Obafemi Awolowo University, Ile-Ife, specializing in all things business and technology.

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