The Impact of Cryptocurrency on Global Financial Markets

Abstract

The research paper will focus on the influence of major cryptocurrencies, especially Bitcoin and Ethereum, on world financial markets and traditional financial systems. It looks at how, because of their decentralized nature, these digital assets have brought new dynamics to financial markets in the price of other assets, their volatility, and their means of investment. The research design is of a mixed-methods nature, combining quantitative data from financial market indices with qualitative insights from expert interviews. Some of the main lessons learnt are declining value with other financial assets, the interdependency between movements in crypto assets and other linked assets and disruptions in banking, payments and investment. Besides, there are regulation decisions that should consider the fluctuations of the market and security requirements, as well as the analysis of many initiatives in order to provide sufficient regulation frameworks on the international level. The concluding advice proposed how not only to accommodate the disturbance of current financial stability through innovations but also to integrate the utilization of cryptocurrencies.