Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    data analytics and truck accident claims
    How Data Analytics Reduces Truck Accidents and Speeds Up Claims
    7 Min Read
    predictive analytics for interior designers
    Interior Designers Boost Profits with Predictive Analytics
    8 Min Read
    image fx (67)
    Improving LinkedIn Ad Strategies with Data Analytics
    9 Min Read
    big data and remote work
    Data Helps Speech-Language Pathologists Deliver Better Results
    6 Min Read
    data driven insights
    How Data-Driven Insights Are Addressing Gaps in Patient Communication and Equity
    8 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Is Blockchain Making the Cryptocurrency Market More Efficient?
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Blockchain > Is Blockchain Making the Cryptocurrency Market More Efficient?
Blockchain

Is Blockchain Making the Cryptocurrency Market More Efficient?

Alex Blackwell
Alex Blackwell
5 Min Read
Cryptocurrency
SHARE

It has been nearly nine years since the anonymous hacker going by the name Satoshi Nakamoto invented the bitcoin currency. The same hacker released it along with another invention, the blockchain algorithm. Blockchain has played a crucial role in preventing fraudulent transactions. However, it may play another role that experts never envisioned. Blockchain may be the key to minimizing market turbulence.

Contents
Market turbulence has rattled the bitcoin marketHow efficient will bitcoin become?Blockchain should improve the efficiency of the bitcoin market

Market turbulence has rattled the bitcoin market

The bitcoin market has surged over the past five years. According to CoinDesk, the opening price for a bitcoin in February 2013 was $20.41. Today, the opening price is $4353.05.

Demand for bitcoin continues to grow every year. Some Wall Street speculators predict that it will increase to $50,000 by 2022. However, the rising popularity of bitcoin masks a deeper problem – extreme volatility.

The market has been extremely turbulent since bitcoin was first introduced. After the collapse of China’s largest bitcoin exchange, the global price fell over 50% overnight. While some of the volatility can be explained by extreme events, it is still much more significant than price changes another asset markets.

More Read

big data gaming
How Gamers And Bitcoin Miners Are Using Big Data
Big Data, IoT And Blockchain: Benefits Of Merging The Trending Trio
PARSIQ Revolutionizes Blockchain Interoperability with Reactive Network Testnet
How Blockchain Advances Paved the Route for the Success of Dogecoin
Blockchain Will Unblock A Data Problem In Healthcare

Fortunately, blockchain appears to be addressing some of these problems. Here are some reasons that blockchain will likely make a bit coin market more efficient.

Encouraging higher transaction volumes by fighting fraud

While bitcoin is becoming more popular than ever before, millions of people are still reluctant to use it. One of the biggest concerns is the risk of fraud.

Blockchain is playing in important role in fighting fraud. However, there are a couple of things that need to change. First of all, blockchain needs to be improved to further minimize fraud risks. Secondly, the bitcoin community must deal with the optics problem.

They must let people know that fraud is usually caused by people failing to secure their own computer and bitcoin wallet. The blockchain algorithm is actually safer than the majority of other financial security solutions that are used by banks and other financial providers. As long as people take adequate security measures, the risks of fraud are minimal.

Resolving these problems will likely boost demand for bitcoin more, which will improve market efficiency.

Streamlining transactions between other financial institutions

The bitcoin industry is going to depend on the support of other financial institutions to grow. Exchanges have already formed partnerships with leading banks, payment processors and other organizations. However, processing payments of these magnitudes can be very resource intensive.

New advances in blockchain have begun making it easier for large financial organizations to process large payments. By enabling transactions between bitcoin exchanges and other financial institutions to be made more quickly and securely, liquidity should rise much more quickly.

How efficient will bitcoin become?

Bitcoin is still an evolving technology, but a white paper written for Claremont McKenna College claims the cryptocurrency has the potential to become more efficient than other financial processing solutions.

“In today’s complex global economy, the efficient transfer of value is of huge importance. As more and more business is conducted online and over large distances, it is only becoming more crucial for monetary transactions to be fast, cheap, and of course, secure. Bitcoin demonstrates strengthening potential to be a far more efficient method than the current best method of transferring money given its speed, reliability, cost, and ease of use (Qkos 2014). However, this paper does not detail all the appealing aspects of using Bitcoin as a currency.”

Blockchain should improve the efficiency of the bitcoin market

Blockchain has played an important role in reducing market volatility. However, it will play an even more important role in the near future. The bitcoin community is going to rely on it to promote liquidity and efficiency.

TAGGED:Blockchain Explainedblockchain technology
Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

AI Document Verification for Legal Firms: Importance & Top Tools
AI Document Verification for Legal Firms: Importance & Top Tools
Artificial Intelligence Exclusive
AI supply chain
AI Tools Are Strengthening Global Supply Chains
Artificial Intelligence Exclusive
data analytics and truck accident claims
How Data Analytics Reduces Truck Accidents and Speeds Up Claims
Analytics Big Data Exclusive
predictive analytics for interior designers
Interior Designers Boost Profits with Predictive Analytics
Analytics Exclusive Predictive Analytics

Stay Connected

1.2kFollowersLike
33.7kFollowersFollow
222FollowersPin

You Might also Like

BlockChain
Blockchain

An Ultimate Beginner’s Guide to BlockChain [Infographic]

5 Min Read
blockchain is changing the state of advertising
Blockchain

The Huge Impact of Blockchain & Bitcoin Mining on the Planet

7 Min Read
blockchain technology in fleet management
Blockchain

Improving Fleet Management with Blockchain Technology

11 Min Read
altcoins
Predictive Analytics

Predictive Analytics Made Last Summer The Season Of Altcoins

6 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

ai in ecommerce
Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence
AI chatbots
AI Chatbots Can Help Retailers Convert Live Broadcast Viewers into Sales!
Chatbots

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?