Cryptocurrencies and the underlying blockchain technology are the future of digitalization. It is a new era in finance that will last for a long time. The first question that comes to mind with the rise of new technologies and for investment purposes is who truly controls cryptocurrency.
This article will look at the four entities that make up the cryptocurrency market, their roles, and how they work together.
1. Little Fish
Small fish, as the name says, are modest participants in this massive cryptocurrency market. As an individual, a little fish has little influence in the cryptocurrency market. But, when all of the small fish band together, it will either make or collapse the crypto market or the coin.
2. Whales
Whales are individuals or groups of people that have the potential to cause havoc in the cryptocurrency market. It includes well-known figures in the financial world, such as CEOs or groups of investors with the investment and trading of hundreds of millions of dollars in the fledgling cryptocurrency market. Their belief alone has the potential to influence the cryptocurrency market for significant people, such as CEOs, who have a large influence on the best cryptocurrencies to invest in.
3. Institutions or Creators
The term “creators” is rather descriptive; they are simply cryptocurrency creators. There are now over 1400 distinct cryptocurrencies in the market, with some employing tens to hundreds of people and others employing just a few engineers. There are so many distinct kinds of cryptos because anybody may construct their own with relative ease. It results in the issuance of a large number of useless cryptos, even when there isn’t enough money or time to create them.
4. Government
One of the major things driving the cryptocurrency sector has been government regulations. In contrast to stock exchanges, where prices may be reasonably steady owing to certain standards, the cryptocurrency market is still in its early stages. The majority of bitcoin investors make decisions based on speculation rather than facts. As a result, any negative news, particularly about future government restrictions, would result in a massive price decline.
