Market Actors Who Shapes The Cryptocurrency Market?

Key takeaways

• The leading market research company, IMARC, predicted that the global cryptocurrency market has already reached a value of $364.5 billion in 2020, and it would grow at a CAGR of 60.8% during 2021-2026.
• But, they have only one aim to get monetary benefits from the cryptocurrency.
• So, with calculated risks, you can also become part of any of these groups and assist in market shaping.

Four Market Actors, Who Shapes The Cryptocurrency Market? #

The leading market research company, IMARC, predicted that the global cryptocurrency market has already reached a value of $364.5 billion in 2020, and it would grow at a CAGR of 60.8% during 2021-2026. This single line is enough to rationalize the popularity of the cryptocurrency market.

Introduction #

Have you heard the word social collectives? According to Christian von Scheme, social collective could be defined as “It is a group of actors that affect and are affected by others or by a specific object or situation and eventually share a common situation-specific understanding of the self as part of a collective”. Social collectives have various social formations, and their actions, behaviors, and emotions impact any market. We can also refer to them as market actors as their actions affect the market. In other words, how different group of ordinary people and their activities shapes the market and economy. It also applies to the cryptocurrency market that ordinary people and their actions influence.

Dr. Christophe Briedbach at the University of Queensland, Australia, researched the cryptocurrency market fluctuations. He found how people’s power has been shaping the future of financial service. The research gave specific names to groups of social collectives that shape the cryptocurrency market. These groups include Freshman, Fortune Hunter, Idealist, and Trailblazer. But, to understand how it is happening, the article will discuss market-shaping, the roles of each actor, and how they are impacting the cryptocurrency market.

Relation between Market Shaping and Market Actors #

We are aware that the cryptocurrency market is high risk and high reward market, and the market is growing every day. According to an Allied Market Research study, the global cryptocurrency market will reach $4.94 billion by 2030, only $1.49 billion in 2020. This means it is growing with a CACG of 12.8% from 2021 to 2030.

The world’s biggest cryptocurrency, the Bitcoin market, has risen above $50,000 in September this year. Not only developed countries but developing counties also found drastic changes in the adoption of cryptocurrency. According to the Economic Times, the Indian cryptocurrency market has become the world’s fastest-growing crypt region and is growing at 641%. The larger business organization are investing in the Indian cryptocurrency market. A similar growth rate has been identified in other Asian and European countries.

Regardless of the market type, any exchange and practice play a critical role in shaping the market. Understanding that market shaping is always the first requirement for an organization. Market shaping reveals the truth, complexities, and facts about the market. Market disruption, market reduction, market widening, and market maintenance are standard market-shaping strategies to understand market stability and get output. These strategies have many activities that enable the market actors to get a specific market outcome.

Regarding the cryptocurrency market, various market-shaping strategies lead to the growth/loss of the market. All these strategies enable the market actors to assist in analyzing the stability or instability of this market. In this case, these actors are people who invest in cryptocurrencies. Without investment in any business, there will be no business growth.

Four Market Actors #

The market actors are not factors or conditions, but they are actual human beings who have an interest in cryptocurrency. The researchers have already termed it “social collectives” because human beings establish a society, and the activities and decisions of human beings directly impact the community. In the same way, the people belonging to the cryptocurrency market impact all factors, including pricing, demand, standards, and rules.

1. Freshman #

The first category of the market actor is those who do not know the details of the cryptocurrency market but are keen to learn it. As per the name of “freshman”, these people are freshers and new in the industry. These people could be individuals, the general public, or retired people who want to spend some time learning about the interesting cryptocurrency market. This is the largest group that is trying to acquire knowledge from available resources and communities.

2. Fortune Hunter #

The second category of the market actor is those who know cryptocurrency and are looking for investment to get high cash returns. The hunter word suits these people as they like hunting and take the risk to get maximum profits. They keep trading knowledge, initial coin offerings, decentralization concept of blockchain, and other relevant taxation factors. But, they have only one aim to get monetary benefits from the cryptocurrency.

3. Idealist #

The third category of the market actor is those people who are seeing themselves as cryptocurrency market consultants. These people do not want to earn but wish to teach others using their knowledge. That’s why they are called an idealist. These people could be IT professionals, researchers, students, and experts who enjoy researching and exploring the technology and become experts. They do not aim for monetary benefits.

4. Trailblazer #

The last and fourth category of the market group is a narrow group of people already trading cryptocurrency. These people could be called thought leaders who have deep knowledge about cryptocurrency. They have two aims, including monetary benefits and supporting the community by sharing their knowledge. That’s why it is also known as the combo of fortune hunters and idealists.

The Techtelegraph also interviewed the researcher of these market actors and highlighted how it impacts and raises the bitcoin pricing. All these groups must have one common trait: a passion for cryptocurrency. The companies working in this market were looking for both freshers and experienced. Big Indian players like CoinDCX, WazirX, Zebpay have already declared that their companies are looking for people who have passion and intrigue about cryptocurrency.

How Their Actions Shape The Cryptocurrency Market #

We have already discussed the four market actors. These are individuals who are building different types of communities to shape the cryptocurrency market. All these actors perform specific actions to bring out changes in the market, but what are those actions and how they are affecting the market trends and pricing of cryptocurrency. These actions include creating an ideal market, sharing knowledge, finding resources, determining standards or codes of ethics. It is a fact that all these actions are common in any business market.

The four groups also follow the same principles and take these actions to shape the cryptocurrency market. For instance, a fresher always try to locate resources and share their knowledge after learning it. In the same way, when a freshman learns from the authentic resources and expert groups, they try to share it. For example, learning from the internet resources (webinar, podcast, interview, or web research) and sharing the information about cryptocurrency apes and trading sites and how it works could be considered actions. These actions would increase awareness about the cryptocurrency, which will directly impact the market.

Indoctrination is another action that impacts the market. This word dictates: accept something (beliefs/system/rule) without knowing it or questioning. Assuming something without rationalizing also influences the market. It mostly happens in the uncertain market of cryptocurrency. Most of the time, fortune hunters take this action and enforce someone for trading. We can say that traders, miners, or investors are doing these things to acquire financial gains quickly.

Except for freshmen, all three groups and their people share their knowledge, rules, and norms required for trading. Sometimes, they also develop the regulations and standards related to trading. By doing these, they try to increase the market efficiency for exchange. In this way, simple actions of individuals are affecting the market directly and indirectly.

Final Thoughts #

Digital currency trends, smooth business operations, demand for data security in electronic transactions, transparency in finance operations, and remittances are common factors driving the cryptocurrency market. Although, this high-risk market is limited to banking and financial organizations. Lack of awareness, guidance and expensive implementation costs cannot attract small ventures in the cryptocurrency market. Accurate information and strategic investment can only help people to understand the lucrative opportunity of future investment. These people’s behavior and actions are only affecting the cryptocurrency market. Besides, the availability of free trading apes and digital transactions are also encouraging people to explore this high-risk -high return share market. These people’s curiosity is one major contributor to shaping the cryptocurrency market. So, with calculated risks, you can also become part of any of these groups and assist in market shaping.

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Questions and answers

Four Market Actors, Who Shapes The Cryptocurrency Market? #

The leading market research company, IMARC, predicted that the global cryptocurrency market has already reached a value of $364.5 billion in 2020, and it would grow at a CAGR of 60.8% during 2021-2026.

Have you heard the word social collectives? #

According to Christian von Scheme, social collective could be defined as “It is a group of actors that affect and are affected by others or by a specific object or situation and eventually share a common situation-specific understanding of the self as part of a collective”.