Cryptocurrency markets are projected to surge by 43.7% on the compound annual growth rate (CAGR) scale according to a research by Bekryl. The main causal factor for the positive trend is the increasing rate of evolution and sophistication of Blockchain technology. As DLT evolves, platforms with native Cryptocurrencies become more safe and secure. This and other factors attract more Crypto users and eventually lead to an overall growth.
The Growth Of Cryptos Is Dependent On Blockchain Technology Evolution
Blockchain technology is the back end that is propelling Cryptocurrency markets to greatness. Also known as Distributed Ledger Technology, it contributes to the growth of Digital Assets in two ways; cryptographic ledger protection and public presentation of ledgers. Firstly, cryptographic features ensure that data is protected from unauthorized access to guarantee anonymity and privacy that many Cryptocurrency holders prefer. Secondly, and public presentation of data ensures that there is transparency on the ecosystem. This guarantees trust in the ecosystem and encourage new users.
Additionally, Blockchain platform features are decentralized, a factor that contributes to the growth of Crypto markets. The use of smart contracts also governs internal transactions in a self-executing way to create on-platform fundamental harmony and fairness.
The protocols of Blockchain technology also ensures that DLT can be applied in different solutions in various industries such as logistics, media, IT, services, retail, healthcare, etc. The platforms can be powered by popular Blockchain technologies such as Ethereum, Stellar, Ripple, Komodo, etc. and the native Tokens of these platforms will surge due to consequential demand and prospects of a higher return.
The Rewards For Using Cryptocurrencies Are Also Driving The Growth
In many jurisdictions, regulators have been coming up with stringent policies meant to protect consumers of Cryptos. The results have been mixed since, in some situations, there has been a price plunges and depressed market volumes. However, Cryptocurrencies are becoming less volatile partly because they are maturing and partly due to the efforts of self-regulated organizations (SROs) to lobby regulators such as US SEC and Japan’s FSA for Crypto-friendly policies.
Generally, Cryptocurrencies have immense edges such as peer-to-peer characteristics, secure transactions, borderless, etc. that Berkryl researchers believe to be integral in the projected growth.
A CAGR refers to the compound annual growth rate of determining numerical projections of different phenomena. It is calculated by getting the ratio of the current value as the numerator and the initial value as the denominator, the ratio is then raised to the power of one to represent the year or 365 if the aim is to determine the number of days. Then the power is divided by the corresponding time period and a unit is subtracted from the outcome. Hence, the end result reflects the marginal increase in the period under review. Therefore, the CAGR methodology will forecast the expected gains in Crypto markets in the future.
It is important to note that the CAGR is the best methodology for determining future projections as it is simple, understandable and people can relate to the information.