The crypto wave is rapidly revolutionizing our financial landscape. Cryptocurrencies are a new decentralized form of digital payments running on blockchain networks. Though various global regions have taken different time spans to adopt the idea, it is becoming an unavoidable concept.
In Asia, the crypto market has experienced significant growth over the years. This article will review the Asian crypto market, some factors contributing to its development, and those limiting it. Dig deeper to gain more insights.
Asia is one of the largest continents, sheltering about 60% of the world’s population. The continent is also at the forefront of cryptocurrency trading, with countries like China, Japan, Korea, Hong Kong, and Singapore pioneering this movement.
By the end of 2020, 43% of global cryptocurrency activity took place in Asia, according to a report by Messari. This figure translates to a tune of US $296 billion and has only grown upward from there.
Various elements have enabled this possibility. Let us review a few of them.
During the early stages of cryptocurrency development, some Asian regions expressed a keen interest and bought into the idea early. Various technology enthusiast communities wanted to explore this virtual money’s possibilities.
The Asian population consists of a demographic populated by young, tech-savvy individuals. Countries like Japan and South Korea have individuals who are very embrasive of new technology. This feature made it easy to adopt cryptos upon their release close to a decade ago.
The entrepreneurial spirit of the populace also aided in this early adoption. Several business-oriented individuals saw the power brought by blockchain technology and got into various crypto ventures.
Crypto mining refers to creating new crypto tokens, verifying them, and adding their transactions to the blockchain ledger. Asian countries like China enjoy access to cheap electricity, and mining hardware dominates the industry.
The widespread engagement of mining activity across Asia has played a significant role in fortifying blockchain network security. Furthermore, it has also contributed to the global prices of these currencies.
This relation occurs because miners must recoup their operational expenses when an upsurge occurs in a particular region. This element can lead to increased selling pressure affecting the market price.
Asia houses diverse, highly developed economies, yet some people still can’t access traditional banking services despite this growth. Cryptocurrencies, a decentralized form of money, allow people without bank accounts to participate in the economy.
Cryptos also facilitate smooth and seamless transactions of micropayments. This feature is widely used in various sectors like online gaming.
In such a niche, users can transact various amounts to play their favorite games like roulette in online casinos, participate in eSports tournaments and also play online poker at the best poker sites for real money on credible online platforms like Legal US Poker Sites.
A technology-versed population quipped with constantly advancing innovations gave Asia an advantage with this digital money. Inventions like the internet, which spread vastly across the continent, provided a conducive environment for crypto to thrive.
The internet also availed information before the public allowing interested participants to learn more about these virtual assets. This widespread spread of awareness through technology cultivated a deep interest.
Additionally, mobile connectivity enabled the majority to access these trading markets and information in real time. Traders could then keep up with the global crypto market through these inventions.
As much as the Asian crypto market has grown, various elements have restricted Asia from realizing its full crypto potential. Let’s look into some of these factors.
In some parts of Asia, like India, cryptos have faced resistance. For instance, the Reserve Bank of India (RBI) issued a circular in 2018 restricting banks from providing services to businesses or individuals with crypto ties.
In as much as the ban was lifted later on after legal intervention, investors and business people get highly discouraged from such moves. Additionally, these legislations primarily affect the market growth of crypto-related companies.
The crypto realm is filled with uncertainty due to the highly volatile nature of these assets, which pose a chance for investors to win big, like what happened with the Bitcoin price upsurge.
Additionally, despite cryptos being decentralized, they can still be affected by prevailing world conditions. These activities can cause fluctuations in liquidity pools which might, in turn, have a tremendous financial effect on businesses dealing in cryptos and investors.
The Asian crypto market has made significant strides in terms of development. Despite facing severe opposition in regions like India, this continent controls many global crypto transactions. Several factors contributing to this include crypto mining in big players like China, growth in technology, infrastructure, and widespread crypto awareness.