Global Cryptocurrency Assets Under Management Reach $57 Billion
Cryptocurrency is a digital asset that has no physical representation. States and companies can’t exercise control over this currency. Bitcoin appeared as the first cryptocurrency that has been followed by other types that are called altcoins or alternate coins. The world of cryptocurrency, which richens each passing day in terms of quantity and diversity, presents an alternative to the current monetary system. The growth of the market goes beyond the forecasts of the last years and it is claimed to be correlated with the increasing interest of the global companies in the world of cryptocurrency.
The whole cryptocurrency market has experienced an increase of more than 100% since the beginning of this year. The market capitalization of virtual assets reached a record high of $1.85 million at the end of March this year. Last week Bitcoin reported an inflow of $85 million while two other known altcoins, Polkadot and Ethereum, attracted $2 million and $8 million, respectively. While Bitcoin remains the most prominent cryptocurrency globally in its market cap, Ethereum follows it as trading near $1,650. The world’s largest manager for cryptocurrency assets, Grayscale, officially announced that the digital assets that the company holds are now valued at $45 billion. Grayscale’s Bitcoin assets are around 650,000 with a value of $38 billion. The company has over 3 million Ethereum assets and around 1.5 million Litecoin assets under management.
The record increase is claimed to be linked with the growth of demand at the institutional level. Major global companies are becoming cryptocurrency investors. Recently Tesla purchased around $1.5 billion in Bitcoin assets and we have learned that its CEO Elon Musk is a vocal supporter of Bitcoin. The capitalization of the market and that of the cryptocurrencies is expected to hit its highest level until 2025, before reaching a certain kind of stability. The digital assets have a variety of advantages for individual participants: decentralized system, enhanced security in transactions and wallets, low fees, quick transfers, protection from state pressure in relation to the socio-political and economic circumstances at the national level.