In the last two years, the level of cryptocurrency literacy has increased. One of the reasons for such a high level of increase in knowledge of people was the bubble of December last year. Since then, many organizations, colleges, and governments have started training and courses on cryptocurrency. This increase in knowledge has impacted the market in many ways.
The various ways this has influenced the cryptocurrency market are:
1) Increased level of adoption: prior to this time, some countries of the world do not want to do anything with cryptocurrency since they believe it aides money laundering, terrorism, and cyber crimes. However, the increase in knowledge has made them to understand that cryptocurrency has better usefulness than this negative vices. This has led to increased adoption of cryptocurrency by governments and financial institutions.
2) Correction that cryptocurrency crime culprits could not be prosecuted successfully: prior to the spread of both free and paid online courses on cryptocurrency, there is a belief that cryptocurrency offenders could not be arrested and prosecuted successfully because many felt that the technology to track offenders is not in place. However, the recent arrests and successful prosecution of cryptocurrency crime culprits and funds returned to the rightful owners has made people to trust that it’s not all that it has been painted to be for.
3) Easy detection of scam projects: this increased knowledge has led to the creation of the cryptocurrency community for various projects. This has enabled participants in the project to play safe and invest wisely.
4) Improved market competition: almost all good projects in the cryptocurrency are doing everything to have a real life application for the projects. This is unlike before, where many projects are just created with no real-life application. This has led to continuous pump and dump manipulation used by top holders of such coins. This could not be experienced like that presently.
5) Creation of stablecoins: once cryptocurrency is mentioned among users, the next question that comes into mind is volatility. However, the increased knowledge led to the creation of stablecoins like Tether (USDT), Circle dollar(USDC), Gemini USD (GUSD) and others. The stablecoins have made investors to minimize losses that could be obtainable previously when the market is experiencing negative volatility since they are tied to USD in the ratio of 1:1.
6) The attraction of more institutional investors: the previous propaganda was that cryptocurrency is all scam projects that works the same way as pyramid schemes. However, the improved knowledge has shown that this is false. This has led to the attraction of more institutional investors to the crypto sphere.