What is Driving the Growth of Cryptocurrencies?

There are certain factors that influence the relevance and growth of financial securities. Investment analysts the world over analyse these features through fundamental, sentimental and technical analyses to determine the direction of the market or predict possible outcomes for a financial asset look.

In this post, we take a look at varying factors that influence the growth of cryptocurrencies.

Cryptocurrencies are Aiming to be Better Money

After Bitcoin, several other altcoins have sprung up. Even before the success of bitcoin, there were several other attempts to get an alternative currency with the likes of Nick Szabo’s Bitgold.

The cryptocurrency space strives to be better by continuously attempting to solve financial problems more effectively. This has gone a long way to affect how it is perceived and is driving its growth. 

From solving issues of transparency, bridging the gap for the unbanked, all the way to remittance; cryptocurrency is a hair’s breadth from truly becoming the evolution of money.

The Media’s Attention

Anything the media places some spotlight on gets attention. This is also true for cryptocurrencies. Sentiment plays a crucial role in how financial assets are perceived. If people believe that something is valuable, demand for it increases. When demand is greater than supply, the value and price go up.

In a nutshell, the more focus the media places on cryptocurrency and blockchain, the more attention it gets from people. And with greater attention, its value increases.

Blockchain 

Outside of money, this technology has the potential to completely change diverse industries. With increased acceptance, it is positively impacting the first system built it; cryptocurrency.

In summary, cryptocurrency keeps expanding because there are factors that are tilted in its favour. Some sentimental, others technical and a few others political. The truth remains that irrespective of the massive technology that cryptocurrency is built on if it had been met with a hostile reception, chances are that it would not have seen the light of day. 

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Quidax is a European based digital assets exchange that provides a simple platform for users to send, receive, buy and sell digital currencies. Our aim is to educate you about cryptocurrency. It should not be considered as financial advice. You should conduct your own research before deciding to store, buy or sell any cryptocurrency.