Contents
The cryptocurrency market is currently worth around $1.4 trillion. However, that number is constantly fluctuating. So, how much is the crypto market worth today?
Checkout this video:
Introduction
At the end of 2017, the global cryptocurrency market had a worth of $613 billion. By the end of 2018, it had fallen to $109 billion. So, what caused this price crash? In this blog post, we’ll take a look at the underlying reasons for the decline in crypto prices.
There are a few key factors that contributed to the crypto market crash of 2018. Firstly, there was a lot of ” hype ” surrounding cryptocurrencies in 2017. This led to an influx of new investors who were attracted to the crypto space because of the possibility of making quick and easy profits. However, many of these new investors were not aware of the risks involved in investing in cryptocurrencies. As a result, when the prices started to fall in early 2018, they quickly sold off their holdings, leading to a further decline in prices.
Another factor that contributed to the crash was regulatory uncertainty. In early 2018, several countries (including China and South Korea) introduced stricter regulations on cryptocurrency trading. This made it difficult for traders to operate in these countries and caused many to exit the market.
Finally, another reason for the decline in crypto prices was the development of new technologies that made it easier to trade cryptocurrencies without having to use exchanges. This meant that traders could bypass fees charged by exchanges, which made it more profitable to trade directly with each other. This led to a decline in trading activity on exchanges, which further contributed to the price crash.
How is the crypto market worth calculated?
The crypto market is worth is calculated by taking the total supply of all cryptocurrencies and multiplying it by the current price. The total supply is the total number of coins that will ever be in circulation. The current price is the price of a single coin.
Market capitalization
Market capitalization, or “market cap,” is one way to size up the relative value of a cryptocurrency. It represents the total value of all coins in circulation and provides a way to compare different cryptocurrencies. The market cap of a cryptocurrency is calculated by multiplying the circulating supply of coins by the price per coin.
Circulating supply
Cryptocurrency market capitalization is calculated by multiplying the price of a currency by its circulating supply. The circulating supply is the number of units that are currently available for trading. It’s important to note that this is different from the total supply, which is the number of units that will ever be made available. For example, if there are 21 million Bitcoin in circulation and the price of Bitcoin is $10,000, then the market cap of Bitcoin would be $210 billion.
How has the crypto market worth changed over time?
The crypto market worth has seen a lot of ups and downs over the years. In December 2017, the market hit an all-time high of $828.8 billion. Since then, the market has been on a steady decline, and is currently sitting at $214.5 billion. Despite the volatility, the crypto market is still worth a lot of money.
2017
On January 1st, 2017, the market capitalization of all cryptocurrencies was just over $17.7 billion. By December 31st, it had increased more than 3,300% to over $600 billion.
2018
In 2018, the total worth of the crypto market crashed from an all-time high of $813 billion to $112 billion. This is a 86% decrease in value.
2019
In 2019, the total worth of the crypto market was $274 billion. This is a significant increase from the $172 billion worth in 2018. However, it is still a long way from the all-time high of $835 billion in December 2017. The crypto market has experienced a lot of volatility over the years, but it appears to be slowly stabilizing.
What factors have influenced the crypto market worth?
Cryptocurrencies are a digital or virtual asset designed to work as a medium of exchange. They use cryptography to secure and verify transactions as well as to control the creation of new units of a particular cryptocurrency. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. The crypto market worth is based on the supply and demand of the currency.
Bitcoin
Bitcoin, the original and most well-known cryptocurrency, was launched in 2009 by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Bitcoin can also be held as an investment.
The IRS has said that bitcoin will be treated as property for tax purposes. The US Commodity Futures Trading Commission has classified bitcoin as a commodity.
In 2014, the European Banking Authority categorized bitcoin as a “convertible decentralized virtual currency”. In 2015, the use of bitcoin in criminal activity was estimated at $1 billion USD..
Ethereum
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
These apps run on a blockchain, an enormously powerful shared global infrastructure that can move value around and represent ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middleman or counterparty risk.
The project was bootstrapped via an ether presale in August 2014 by fans all around the world. It is developed by the Ethereum Foundation, a Swiss non-profit, with contributions from great minds across the globe.
Regulation
In recent years, one of the most significant factors influencing the crypto market has been regulation. In 2018, for example, the U.S. Securities and Exchange Commission (SEC) released a number of public statements warning investors about the risks of investing in ICOs, and many ICOs subsequently shut down. In 2019, the SEC also began cracking down on exchanges that were not properly registered with the agency.
As a result of these regulatory actions, the crypto markets have become much more stable and mature. Nevertheless, regulation is still a major factor influencing the worth of the crypto markets, as it can influence both the supply and demand for cryptocurrencies.
What does the future hold for the crypto market worth?
Cryptoassets have seen a surge in popularity and value since Bitcoin’s inception in 2009. With a current market capitalisation of over $100 billion, it’s safe to say that cryptoassets are here to stay. So, what does the future hold for the crypto market worth?
2020 and beyond
No one can accurately predict the future of the cryptocurrency market. However, there are some general trends that experts believe will continue in the coming years.
The first is that the overall market will continue to grow. This is because more and more people are becoming aware of cryptocurrencies and are investing in them. The second trend is that there will be more regulation of the crypto market. This is because governments are starting to realize the potential of this new asset class and want to make sure it is used in a responsible way.
Finally, it is expected that there will be more use cases for cryptocurrencies. As more businesses start to accept them as payment, we will see their value increase even further.
