As of today (July 27th, 2018) a transaction volume of all cryptocurrencies amounted to almost 15 billion dollar. Let’s put it into perspective.

NASDAQ has scored today a volume of 161 billon dollar which is around 10 times more. However, cryptocurrency market is closer to a foreign-exchange market, which has daily volumes of over $5 trillion. Compared to this, cryptocurrencies feel still pretty tiny, but it is the number that we can use to estimate the maximal potential volume for cryptocurrencies. There is a difference with a factor of 300. If bitcoin price rose by the same factor, the price per one bitcoin would be almost 2,4 MM US-Dollar.

Can the cryptocurrency market stand up to this potential? Looking at the growth of the number of bitcoin wallets, we can notice that there is an exponential trend. In my opinion, it’s up to two factors for the trend to continue.

Number of bitcoin wallets.

1st adoption factor: Security

Today, most financial exchanges are centralized. This means that money deposited by users is often held in one location. For hackers it is an easy aim to attack. Centralized exchanges have a history of poor security. In the past year alone, the token economy has seen over $1 billion in funds stolen. As long as this risk persists, global adoption of cryptocurrencies and decentralized services is blocked.

Decentralized Exchanges and Security

From a fundamental viewpoint, decentralized exchanges offer much more security and control to all stakeholders than centralized exchanges.