In recent years, cryptocurrencies, and Bitcoin, have shown their worth, with 14 million Bitcoins currently in circulation. Most of the present market capitalization is driven by investors speculating on this new technology's future potential, which is expected to continue until a certain level of price stability and market acceptability is attained. Alex Reinhardt observes that those investing in cryptocurrencies seem to depend on a perception of its "inherent worth" in addition to its announced price. This encompasses the technology and network itself, the code's integrity and the decentralized network.

In addition to the existing payment system, the blockchain public ledger technology (which underpins cryptocurrencies) has the potential to disrupt a vast array of transactions. These include bonds, stocks, and other financial assets for which digital records are held, and a trusted third party is now required to verify the transaction.

According to Alex Reinhardt estimations, the cryptocurrency market will develop at a rate determined by the market's main players, as seen by "credentialing moments," in which one or more of these individuals will likely experience a surge of legitimacy. Each of the five essential market participants, merchants and consumers, tech developers, investors, financial institutions, and regulators, will bring the market to the next stage of its development toward general acceptance and sustained growth.

Keys to Market Development

The keys to market development are explained below by Alex Reinhardt:

● Consumers and Sellers
For customers, cryptocurrencies provide peer-to-peer payment methods that are quicker, cheaper, and need no personal information than those given by conventional money services organizations. While cryptocurrencies continue to gain acceptability as a payment alternative, price volatility and the chance for speculative investments drive people to trade rather than spend bitcoins.

Only 6% of PwC's 2015 Consumer Cryptocurrency Survey respondents describe their familiarity with cryptocurrency as "very" or "very." We predict that familiarity will rise as customers have access to new products and services that are not accessible via conventional payment methods.

From the standpoint of companies and merchants, cryptocurrencies provide minimal transaction costs, decreased volatility risk due to near-instant settlement, and the absence of chargebacks (the demand by a credit card provider that a retailer makes good on the loss of a fraudulent or disputed transaction).

● Technologists
Others have pursued more entrepreneurial endeavors, such as the creation of exchanges, wallet services, and alternative cryptocurrencies. The cryptocurrency market has only begun to attract talent with the depth, breadth, and market focus required to advance the business. Consumers and businesses see cryptocurrencies as a user-friendly option for daily transactions if the sector achieves widespread acceptance. Additionally, the sector must establish cybersecurity technologies and processes.

● Investors
In general, investors are optimistic about the potential presented by cryptocurrency and encryption. These mentioned above "inherent value" of the underlying technology provides these investors cause to be confidence. As a consequence, several of the more established cryptocurrency startups have just lately gained institutional investors and Wall Street interest.

● Financial Institutions
Historically, banks have served as a conduit between people with money and those in need. In recent years, however, this intermediary role has diminished, and disintermediation in the banking industry has progressed swiftly. This is due to the advent of Internet banking, the rising use of alternative payment methods by consumers, such as Amazon gift cards, Apple Pay, and Google Wallet, and the development of mobile payments.

● Regulators
Regarding the categorization, handling, and legality of cryptocurrencies, governments throughout the globe have different perspectives. Regulations also evolve at varying rates in various locations.