Back in mid-2017, cryptocurrencies exploded, and as their prices continued to surge — everyone heard about them. Terms like ‘Bitcoin,' ‘cryptocurrency,' ‘blockchain,' and alike emerged all over the web, and beyond. The as the prices grew higher and higher, people started hearing of early investors who became millionaires, and everyone wanted to share in the same experience.
Most people had not even heard of Bitcoin and cryptos at that point, and they rushed to Google to find out what these things are. What they discovered is something that is easy to obtain, it has no connection to banks, it can be bought or managed from your phone, and you can start trading with only a few dollars of initial investment.
Furthermore, the new trend emerged right after the financial difficulties that the market 2008. Before long, millennials, as well as all generations that came after them, were looking into the crypto market and rapidly becoming experts in the trading sector. And just like that, younger generations were not only introduced to the world of trading and investment, but they were charmed by it.
It was easy to do, as well as quite exciting. It was also valuable, and you could do it casually, on the go. What's there not to like?
But, as all things must end, so did the rally that famously brought Bitcoin to $20,000 per coin. In the first weeks of 2018, the market crashed, the prices went down, the hype was gone, and so was most of the money. But, what about the new investors? Well, they stayed. Their interests may have expanded and diversified, but they still got the taste of it at just the right time, and they decided to stick around in the world of investments.
The Evolution Of Investment Ecosystems
When it comes to investing, most people first think of bank officials, suits and ties, famous names, and alike. This is what financial institutions have grown to become, with strict rules, precise regulations, and large investments.
According to the co-founder of a blockchain-based investment platform Roobee, Artem Popov, things have changed a lot after cryptos emerged on the stage. Most investment ecosystems are created with rather tight regulations in their foundation, with large, influential platforms where any type of asset can be sold, bought, and invested in. These markets only allow professionals to participate, and anyone else who wants to obtain some assets can get it by buying it from them.
Then, all of a sudden, things started to change. The emerging markets in the last decade brought change which allowed a larger number of people the ability to participate. The number of investors surged, while trading volumes skyrocketed. This is the change that started ten years ago. Then, around five years ago, another change came, and investments started growing even more though ETF tools.
Finally, in 2017, cryptocurrencies emerged from the dark, and the world learned about the new technology they brought with them, as well as countless possibilities regarding investments, and even the potential to resolve some of the real-world problems.
The New, Disruptive Technology
Another thing that came with cryptocurrencies is blockchain technology. While its initial purpose was to serve as technology on which cryptos could develop, blockchain quickly started evolving and threatening to disrupt countless industries. However, it was still rather interesting to see how the two function together, and no matter how many additional blockchain applications developers can come up with, digital assets will likely always be the most significant product that was ever created on the blockchain.
Popov mentioned this as well, stating that, before the blockchain, there was a need for reliable asset holders, clearing houses, specialized contracts, and alike. Blockchain and its smart contracts made all of this obsolete, while they made the trade easier and accessible to everyone with an internet connection.
And, while the existing investors started viewing crypto as only a new asset, many of those who came for crypto — stayed for crypto. While many of them have yet to expand their interests and add other investment tools, although this is also starting to happen. However, cryptos are the assets that brought them in, and blockchain allowed them to access the world of investment. Also, it was not just any world of investing and trading, but one that was specially created for regular people to try out and enjoy something that was previously only accessible to a small group.
Whether or not cryptos will go back to the levels, they have experienced in 2017 in unknown. However, the important part is that this single event brought thousands of new investors to the markets, and while some are only focusing on cryptocurrency, this is not true for all of them. As a result, thanks to cryptocurrencies, a new generation of investors has emerged, and they are not ready to stop investing simply because the crypto markets are down. Instead, they are going forward and picking up where the older generations have left off.