The pandemic hit the economy real hard but one thing that has witnessed an unparalleled boom during the same period is cryptocurrencies. Bitcoin, the world's biggest cryptocurrency token, crossed the $60,000-mark (roughly Rs. 42 lakhs) in April 2021, while Dogecoin, which started as a meme, has also captured everyone's imagination. However, there's more to this story. A cursory glance at data reveals that it's not just the value of cryptocurrencies but also their numbers that have seen massive growth.
According to a report on cryptopotato.com citing CoinMarketCap data, there are more than 12,000 crypto tokens in the market for cryptocurrency enthusiasts to choose from and invest in. Not to forget, the number of companies accepting crypto tokens as a mode of payment is also steadily, if not rapidly, increasing.
Speaking of the spike witnessed from September 2020 to September 2021, around 4,900 more cryptocurrencies are now available compared to last year. In September 2020, there were approximately 7,100 coins in the market. A year later, that number has risen to over 12,000. There are two primary reasons for such massive growth in not just the value but also the volume of cryptocurrencies.
The growing acceptance of crypto tokens among institutions and the Bitcoin boom were instrumental in driving people and other stakeholders towards the market that now has a total cap of over $2 trillion.
Among other reasons, experts see big names such as Tesla founder Elon Musk and Twitter boss Jack Dorsey's endorsement of cryptocurrency as extremely crucial for instilling confidence.
The next question for many is whether the massive spike in the number of these tokens is a good thing. More tokens also correspond to a higher possibility of scams. Just last month, cryptocurrencies worth $22.2 million (roughly Rs. 165 crores) were seized by the UK police after a global fraud scheme was unearthed. The ones who fell prey to the scam were spread across the world.
Cryptopotato also reported that over $25 million (roughly Rs. 184 crores) were lost to crypto scams among Australians only in the first half of 2021.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.