Digitalisation has increased the use of virtual currencies amongst the youth and is being popular since the time it has been introduced in the financial system. Santoshi Nakamoto was the one who geared the trading market for investors by introducing Bitcoin in 2009. But eventually due to some misunderstanding amongst the Bitcoin community had led to strong disagreement amongst members of Bitcoin community, resulting in launch of Bitcoin Cash. Where appearance of rest of the digital currencies (bank free methods of transferring wealth of any other commodity) are broken down into segments for digital payment framework.
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Virtual Currencies and Investors
Investors get attracted towards such virtual currencies who are having capability of being exchanged for cash and have high speculation ratio. But with all this when it comes to exchanging then their value remains different for different forms of such currency. Let’s say for example Ethereum had its value down by 25% in a month. So the youth has captured maximum market of such virtual Currencies.
Initial coin offerings being famous
As few are still doubting about transparency of issuing Bitcoin as they are still not having any regulatory framework and are judged for being legal for that concern. In between Fintech companies are releasing latest form of IPO as Initial coin offerings (ICO) so as to boost funding from large amount of people; although each contribution might me small but digital for new cryptocurrencies. As they are adding value to virtual currencies by increasing their price. Recently, each month some 20 ICOs are launched. But scams are faced by investors due regulatory framework missing from such virtual currencies.
Still Youth is involved in investing in Bitcoin rather than in Gold cause value of cryptocurrencies is increasing in terms of their price and investments are much easier than Gold.
Need of regulatory framework
As the world has moved towards digitalisation, Cryptocurrencies are result of such digitalisation. Where future of Cryptocurrency is dependant on stability, security, transparency and of course confidence of its users. The most important risk to cryptocurrencies is Hacking, resultant it might be avoided by many of the interested consumers. Where bankers are of the view that whether Bitcoin or other virtual currencies are used then they would be used as asset and not currency.
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