How Cryptocurrency Begun and Its Impact To Financial Transactions

Cryptocurrency has had a significant impact on the stock market since its inception. Bitcoin, the first and most well-known cryptocurrency, was created in 2009, and since then, it has grown in popularity and value. As the value of cryptocurrencies continues to rise, it is important to understand their impact on the stock market and how they affect traditional investments.

Bitcoin and Ethereum are the two largest cryptocurrencies in terms of market capitalization, and their impact on the stock market has been a topic of interest for investors and analysts alike. Here's a historical analysis of their impact on the stock market in the past few years:

Bitcoin: Bitcoin's impact on the stock market has been limited, with little correlation between the two markets. However, there have been instances of Bitcoin's price movements affecting investor sentiment in the stock market. For example, in December 2017, Bitcoin's price surged to nearly $20,000, and some analysts speculated that the surge was partly due to investors selling off stocks to invest in Bitcoin. Additionally, in March 2020, Bitcoin's price plummeted amid the COVID-19 pandemic, causing a sell-off in global stock markets.

Ethereum: Ethereum's impact on the stock market has been even less pronounced than Bitcoin's. However, some analysts have noted that Ethereum's underlying technology, blockchain, has the potential to disrupt traditional financial systems, which could have a long-term impact on the stock market. In addition, the growth of decentralized finance (DeFi) applications built on the Ethereum network could lead to increased investment in related stocks.

Overall, while cryptocurrencies like Bitcoin and Ethereum have made headlines for their price volatility and potential to disrupt traditional financial systems, their impact on the stock market has been limited thus far. However, as the crypto market continues to evolve and mature, it remains to be seen how it will impact the stock market in the future.