There is no denying that cryptocurrencies are becoming more and more well known. Most people these days have heard of at least Bitcoin
, which accounts for nearly 40 percent of the total market capital, which shows how far the cryptocurrency market has grown since it began in 2009.
Yet, despite the fact that the market is increasing, it is still rife with negative connotations. Yet, many professionals have been debating that despite this, has it become too big to ban, or disappear?
At the end of February, the total market capital of cryptocurrencies stood at a whopping $485,592,032,675. Yet, despite this huge number, it is still far lower than many other sectors. This has not stopped there being an influx of private investors
entering the market, which has resulted in nearly $0.5 trillion USD worth in cash being invested in cryptocurrencies.
The market capitalisation would suggest that despite the increased investment the amount is not too big to fail; however, the main problem that they face is security and regulatory changes, so if they could overcome these, the concept could really take off.
Cryptocurrencies trade on unregulated markets, however, the fact that they are decentralised along with peer-to-peer transactions it makes it very hard for any governments to ban the exchange of cryptocurrencies. Whilst an outright ban is unexpected, it might be more reasonable to expect.
If the market became regulated
, cryptocurrencies would be considered as a new asset class, which would then need to run alongside traditional currencies. However, because they work in different ways, this would become difficult, without causing some threat to the traditional sovereignty. In order to prevent this, the market would need to be regulated, and declaration of holdings and taxes would be required, in order to work alongside traditional currencies.
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