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4 Recent Developments for the Cryptocurrency Sceptic

The world is abuzz with cryptocurrencies and the concepts and technologies that drive them. At the same, there are many that are resistant to them, believing them to be the domain of criminals. For those in that camp, here are 4 recent developments cryptocurrency, decentralized finance (DeFi), and blockchain technology in the past 12 months to help you change your mind:

  1. The market has established critical mass. Market capitalization is now between USD 1.2 trillion and USD 1.5 trillion and includes over 8,000 cryptocurrencies. More, exchanges are becoming increasingly established, such as U.S.-based Coinbase, which is currently valued at approximately USD 100 billion.
  2. Institutional investors are taking positions. An estimated 2/3 of the market holdings are by institutional investors, including high-profile companies like Tesla, Square and MicroStrategy. Many have even taken a treasury position with cryptocurrencies.
  3. DeFi and FinTech are merging. It is estimated that around 3% of market cap is staked on DeFi sites like BlockFi, Crypto.com, Nexo and other similar sites that offer deposit rates of up to 12%.
  4. The returns are real. The market cap has risen by around 7 times in the past year. That’s a great return on investment.

Going crypto isn’t for everybody as it’s a highly-volatile market with no shortage of unscrupulous players. But every financial instrument has a dark underbelly. And before you make any rash decisions, check the data!

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