In entire cryptocurrency market exceed $570. That is, in

In the outgoing year, the cryptocurrencies
managed to truly shake the entire financial world. Despite the fact that in the
autumn, bitcoin celebrated its ninth year of existence, and financial institutions
are considering cryptocurrencies and introducing their own investment projects
for more than a year, only in 2017 the digital sphere has reached a decisive
turn of its development and has become world-wide. We observed the peak of
ICO’s popularity, and the spectacular growth of bitcoin, and the increasing
popularity of block-technologies with their integration into entrepreneurship,
and the formation of bitcoin as a full-fledged means of payment, and the
beginning of futures trading bitcoin. Undoubtedly, the most
important result of the past year is the insane increase in the prices of many
cryptocurrencies, in particular bitcoin. On November 27, the world woke up on
the doorstep of something new: for the first time in history, the cost of
bitcoin jumped over $10,000, and immediately rushed toward $20,000, so that it
could be overcome without excessive effort and suddenly go into correction. Attention
is drawn to the fact that many still believe that cryptocurrencies are a huge
pyramid or a global bubble. Only so long as the pyramid has not collapsed, no
one can assert anything with absolute certainty.

As for
today, the capitalization of bitcoin is almost $200 billion, and the indicators
of the entire cryptocurrency market exceed $570. That is, in 2017, the bitcoin
performance actually increased by 1500%, and the capital turnover of the whole
sphere was compared with the indicators of Microsoft from time to time. We can
see that bitcoin is the most recognizable cryptocurrency in the world of
blockchain. However, if we go further into this topic, we can understand that
other cryptocurrencies also have great potential, and bitcoin domination has
fallen to 30%.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

It is
worth paying your attention to ripple, ethereum, neo, tron, litecoin, etc., as operations
with ripple tokens go faster and are cheaper. For a transaction with the BTC,
you will have to pay a commission of about $30, whereas an operation with XRP
will cost a few cents. Currently, Ethereum can process almost three times as
many transactions as bitcoin. Ethereum also has a low transaction fees.

look forward to the year 2018, at least in the sphere of Ethereum, about which
I can speak with the greatest certainty, will be a year of action. This year,
we will embody all the ideas related to scalability, plasma, proof-of-stake and
privacy, over which we have been methodically working and which have improved
over the last four years. A live working code, which you can test by yourself,
is already running in the testete, and in some cases also in the main network.

All in the Ethereum space recognize that the whole world is watching our work,
and we are ready to meet our expectations” (Vitalik Buterin, 2017). Vitalik
Buterin, the man who created the Ethereum blockchain-platform, said that the
crypto currency is the future of cybersecurity and the economy, and with the
right approach, the “ETH” will equal the bank cards. While the blockcain
is running too slowly for the most common applications. Bitcoin processes
slightly less than 3 transactions per second, Ethereum – 5 per second. Uber makes
12 trips per second. Blockhain needs a couple of years to equalize with Visa.

such advantages of the block, we immediately ask ourselves whether the cryptocurrencies
can become the mainstream money? In Sweden, the population almost completely
abandoned cash. The country has the lowest level of circulation of banknotes
for the last 30 years of observations. It is not surprising that the Swedish
Central Bank is thinking about replacing the kroon with the cryptocurrency. Many
currencies in sub-Saharan Africa have depreciated due to hyperinflation,
distrust of the population to local institutions and outages. As a result, in
the Congo more than 90% of deposits and loans are denominated in foreign currency
and the government of Zimbabwe completely refused coinage in 2015. Bitcoin can
also be useful in regions where governments impose strict restrictions on the
use of foreign currencies from other countries. The
government of Japan spends huge resources on transportation, collection, and
audit of paper money and J-Coin can be used to minimize costs. Furthermore, The
Japanese government legalized the use of cryptocurrency as a means of payment,
additionally, countries like UK, UAE, Venezuela, India have plans to issue
their own cryptocurrencies, tied to their currencies.

The Chinese government and South Korea intend to introduce stringent measures
to control the cryptocurrency market. It is forbidden to involve both
traditional money and cryptocurrency. Furtheremore, The Swiss Bank, Credit
Suisse, published a study of the cryptocurrency market and found that 97% of
all bitcoins are concentrated in the hands of 4% of users. Concentration of wealth in a small group of users –
whether individuals or exchanges – means that several key players can have a
huge impact on the bitcoins market.