Prashanta Panda

Growth of Cryptocurrency Prashanta Panda

Cryptocurrencies are an encrypted, digital peer-to-peer network used for facilitating digital barter, developed ten years ago. Cryptocurrencies provide anonymity while making transactions and have a decentralized structure when compared to other currencies. The first cryptocurrency can be traced back to the period of financial crisis (2007-08). The financial crisis pointed out the instability and the flaws of the prevalent currencies. This resulted in the introduction of a digital, decentralized currency- Bitcoin, which did not require the involvement of any third party. Since the introduction of Bitcoin in 2008, numerous cryptocurrencies have emerged in the market. Cryptocurrency named Namecoin was introduced after Bitcoin back in the year 2011, which was later followed by Litecoin and other respective cryptocurrencies. Bitcoin obtained significant attention after its consistent rise in prices and market capitalization. In 2017, Bitcoin's price was nearly $19,000 and held a market capitalization of $314 billion USD making it the oldest, popular and highest valued cryptocurrency of all time. Currently, the market capitalization of Bitcoin has declined to $63.6 Billion and its price stands at $3,638 USD. Cryptocurrencies have observed a varied acceptance around the world. Countries like Japan, USA, Germany, Australia and many more are accepting cryptocurrencies, but these countries take some preventive measures to avoid its use for illegal transactions. Whereas, countries like China, Vietnam, Russia, Bolivia, Columbia and Ecuador have banned the use of cryptocurrencies in their countries. Certain countries like India, Jordan, Thailand and many more remain uncertain and are yet to decide regarding its legality in their countries. Till date, a major concern remains the sustainability and stability of cryptocurrencies in the future. This paper focuses on the history of cryptocurrencies and their performance over a period of 2008-17. This paper throws light on the exchange platforms and their market capitalization.