With the people’s revised view regarding the concept of cryptocurrency trading, several changes were observed in terms of market status and behaviour. If we are to recall, cryptocurrency used to be considered as a dark instrument that is utilized by individuals who wish to do untraceable transactions. But with the health crisis that we are currently experiencing, more and more individuals have appreciated cashless transactions and this has brought digital coins into the limelight. At present, we can already see stores and other business establishments that accept cryptos as a form of payment. Does this mean that cryptos are already at par with other modes of payment such as cash ,credit or debit card transactions? This may seem to be a good picture for an ordinary consumer but to some traders, especially to those who deal with stocks, they think that cryptos pose a great threat towards stock market transactions. Could this be real? Is cryptocurrency really going to paralyze the stock market? or is it going to make it better? In this article, we shall try to provide answers to these questions as we sincerely and meticulously discuss the nature of crypto trading and its effect on the market.
Is cryptocurrency at par with other modes of payments?
While it is true that there is an increasing number of individuals who are starting to get immersed into the cryptocurrency universe, this does not mean that the said financial instrument is already at par with the currency that is used in banks for credit or debit transactions. As of the moment we can still see that in the US alone, statistics prove that there are about 1.06 billion credit cards in use and 2.8 billion credit cards worldwide. While other sources say that Out of 74 countries in the Statista Global Consumer Survey, Nigerians were the most likely to say they used or owned cryptocurrency. By looking at the digits, it is pretty obvious that there are still more people who are into the traditional payment method but we must also never forget the fact that this status will never remain forever. Because if we try to dig deeper, cryptocurrency ownership may sooner or later outnumber the traditional payment scheme due to its advantage.
Is cryptocurrency going to paralyze the stock market?
In some of our readings from the articles written by expert financial advisors and traders we see cryptocurrency as an instrument which will have a huge impact in the stock market but this will never paralyze the market. Let us first remember that stock markets have already survived centuries. Thus, it has already withstood several challenges that try to topple its throne for being one of the most established trades in the market. But then again, the cryptocurrency’s power should never be neglected as well because it has the potential to take over the dollar for being the reserve currency. If this happens, the stock market which mainly relies on dollars and other physical currencies could also be disrupted.
To give closure to our discussion, we can derive that cryptocurrencies have an increasing power in the market as more and more people get involved with its usage and ownership. This observation could be a threat to other trades but as a wise trader, it is best to look at it as an opportunity to explore and enhance your portfolio especially if you venture in both stocks and cryptocurrency trading.