4.3 Market structure – Crypto

Financial Market Structure

Let us talk about the market structure of the Crypto currencies and what is specific about its structure

  1. Non-Centralised – Unregulated market and there can be different prices varying from broker to broker.

  2. Dencentralise the Central banking system – This is the reason why it is created. 905 of the countries have central banking system (Bank of England printing and controlling the number of Pounds printed). Specific to the crypto market, it is based on a specific type of technology that limits the number of Crypto coins printed. This decentralises the central bank system.

  3. Block Chain – Technology used to create the coins is known as block chain. Block chain is not the Crypto currency itself. It is a technology and platform that produces the crypto currencies. Crypto currency is a derivative of the type of currency that was produced. Bitcoin is an example of the coin created from this technology. There is a limit at which it is created, decentralising the central banking system.

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