90

Blockchain Technology

blockchain mechanism, though they naturally exist on remote transaction networks.

Numerous copies of Bitcoin have been developed from more important inventions of

the empowering blockchain technology, although with diverse constraints like mate­

rials, transaction authentication times, etc. However, in terms of market capitaliza­

tion, the cryptocurrency ecosystem is still dominated by a few players, with Bitcoin

accounting for more than 35% of the total market by capitalization. In terms of trad­

ing platforms for crypto-assets, as of April 2018, the number had exceeded 10,000

(Rochemont and Ward, 2019). The ten largest cryptocurrencies account for 77.4%,

totalling $296,596,186,406 in value, of the total market capitalization, as illustrated

in Figure 6.1.

Mourdoukoutas (2018) lists the most popular cryptocurrencies by market capi­

talization as Bitcoin, Ethereum, Ripple and Litecoin. Based on previous surveys,

76% of millennials would invest in Bitcoin, with the remainder split in half between

Ethereum and Litecoin. Bajpai (2017) lists six other altcoins, which could in the

future stand as strong alternatives to Bitcoin. These are Litecoin, Ethereum, Dash,

Ripple, Monero and ZCash.

6.2.3  Barriers and Opportunities in Cryptocurrencies

Despite its phenomenal growth, cryptocurrency remains saddled with potential

threats of money laundering schemes, cyber theft, tax evasion, bribery payments and

funding of counterfeit goods as its major dark side (Regulatory Brief-PwC, 2018).

Furthermore, cryptocurrencies are deemed potentially disruptive to the financial

FIGURE 6.1  Cryptocurrencies by market capitalization. (From coinmarketcap​.co​m, 2018)