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How is the Fintech industry affected by changes in the Cryptocurrency World?

How is the Fintech industry affected by changes in the Cryptocurrency World?

Content:

1. Cryptocurrency and Fintech

2. The tendency of Cryptocurrency Development

3. Cryptocurrency Regulation

4. Conclusion

With the outbreak of the pandemic and the global economic crisis, the future of the cryptocurrency and Fintech industry is obviously under change. We intend to outline the major tendencies and reasons for this alteration, as well as the system of interconnections between cryptocurrency and the Fintech market.

1. Cryptocurrency and Fintech

Taking into account the financial transactions, the cryptocurrency has influenced them dramatically since it has overtaken the conventional system in the number of usage rates due to its extreme convenience and effectiveness. Global markets tend to refuse to accept credit cards in favor of cryptocurrency because it excludes the extra fee payment and adds to the deal’s transparency and reliability. With cryptocurrency, there is no risk of fraud — the vendor gets the precise amount of money that is needed. 

A substantial number of companies opt for cryptocurrency, aiming to eliminate the gathering of funds in one place and can make payments without additional legal agreements. However, there is not only good in the crypto sphere. Analytics predict the increased volatility and threat of the currency drop and warn that shortly, some illegal organized groups could emerge. There will be a need to deploy the struggle against different corruption schemes. 

As presented in the CoinMarketCap investigation, “The total crypto market volume over the last 24 hours is $110.52B, which is a 27.18% increase.” We may conclude that this realm takes the place of one of the fastest evolving industries. Last year, the global rate of cryptocurrency ownership reached 3.9%, and the number of people using this currency exceeded 300 million users. 

2. The tendency of Cryptocurrency Development

Notwithstanding all its popularity, 2022 brings new challenges for the market. Today, the world is experiencing a considerable decline in the figures for cryptocurrency investments. The evidence can be observed by the rates of bitcoin that dropped from the highest level of $69 thousand in 2021 to $25 thousand in May. The other currencies follow the same tendency, with Ethereum declining by 7%, Solana by 7.3%, and Avalanche by 9.4%. 

In general, most cryptocurrencies fell by 30%, provoking the uprising doubts about the stability and future of this sphere. The same happened with Luna, which decreased due to problems with stablecoin Terra, which currently trades at 18 cents. A great role was played by the panic of the investors, who started to take out their money, breaking the grounds of the stablecoin. 

Another reason for these explicit changes is U.S. inflation, which is the highest in the last 40 years. Pandemic effects, as well as Russia’s war against Ukraine, withdrew investors from Russia out of the global market and set up new boundaries and tension over the world economy. The most impressive downturn is seen as an outcome of the Dow Jones Industrial Average loss of more than 1000 points and the fall of Nasdaq by 5%. 

Translating this phenomenon to the Fintech industry, it can be noted that the number of investors is about to reduce, releasing the high level of competitiveness between trading companies. Thus, the market will conquer only those who provide superior quality service. Exactly as Fintatech does, offering its clients the best software for trading that is fully customizable and designed to lead trading to first-rate results in this race. 

3. Cryptocurrency Regulation

As bitcoin was primarily developed decentralized and without a central unified control authority, it still remains a question about its regulation and control. It also includes the incapacity of the government to impose its power and claim the fulfillment of its rules. 

Nevertheless, the authorities can control a cryptocurrency’s price by making purchases in the marketplace and possessing the necessary number of assets on their own. The stumbling stone of enabling regulations is the spreading of cryptocurrency worldwide. Thus, it should be applied in many countries, not only in a single one. If the government did not implement it, investors would be in danger of fraud, and other criminal groups would emerge and act uncontrollably. 

Only if the new regulations are installed the digital assets will prove to be legitimate and obtain the possibility to trade on the global markets. 

Correlation between Bitcoin price and the U.S. stock market can be analyzed that the need to regulate cryptocurrency is of primary importance because uncontrollable assets cannot possess such an influence on the wide-scale market. 

Prominent economists and lawyers agree on the restrictions and technologies that would benefit the cryptocurrency position. An excellent option is considered to apply biometric technology (fingerprints or facial recognition) to the digital assets to provide a basis for approved users and transparent transactions without criminals. Governments of numerous countries establish the organizations and software aiming to assign regulatory groups and services for the crypto sphere. 

Summing up the data mentioned above about the implementation of the rules for digital assets’ control, it can be concluded that in the upcoming weeks and years, the emphasis and the major respect will be placed on secure and stable software of excellent quality. Protected software for trading is a specialty of Fintatech company. Our company pays special attention to providing the customers with a secured basis for trading and is ready to help you to do it.

But not be confused by the hardships of cryptocurrency since it seems trivial compared to the advantages it brings. The biggest merchants continue to accept cryptocurrency and, by doing this, boost the number of their customers. It turns favorable as it builds new ways to apply to the customers who are interested in paying in cryptocurrency. Consequently, the medium sum of the transaction increases because crypto users spend more than others. Besides, the fee for these digital transactions is minor; that’s why clients are able to save their money. The most important note is the stability these services provide. In other words, the more stable and secure the platform customers choose, the more fortune it is possible to gain there. 

Conclusion

As a result, it doesn’t need to be explained that notwithstanding the market tendencies of growth and decline, the quality and transparency will always take the interest of the traders as the need for trading does not disappear. Fintatech solutions are the best option for your company as they provide quick analytics, enabling you to monitor the price swings. Thanks to our service, you will never miss the opportunity to make the right bet. 

Having the Fintatech platform installed gives you the pleasure of contemplating the market decline in the first aisle seat of the financial chart.

Contact Fintatech for more information about customizable and solemn solutions for your trades. 

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