ANALYZING THE ACCEPTABILITY AND CHALLENGES OF THE CRYPTOCURRENCY MARKET

Abstract

Cryptocurrency is a medium of exchange which is digitally encrypted, decentralized and is based on the blockchain technology.Even though cryptocurrencies are unlikely to substitute traditional fiat currencies, they have the potential to completely transform the way in which global financial markets interact with each other.Cryptocurrencies have the power to create a free flowing trade system with minimum fees.A major feature of cryptocurrency is its organic nature, providing the currency immunity against the manipulation and interference by the Government.There are different factors which affect the investing decisions of different players in the cryptocurrency market.Investors will be encouraged to invest in cryptocurrency if it can be classified as a store of value, making it an attractive investment instrument among the various asset classes.Cryptocurrencies have their own pros and cons.This paper analyzes, in depth, the various challenges and risks that stand in the long term expansion of the market.In addition to this,the paper elaborates on the advantages and opportunities available in the future.Since, the cryptocurrency market is evolving with a rapid speed and has shown tremendous growth, a detailed analysis has been made regarding the potential of cryptocurrencies.Cryptocurrency has the possibility of becoming a future currency.