What effects do cryptocurrencies have on financial markets?

Cryptocurrencies have had a substantial impact on financial markets since their emergence. One major effect has been the disruption of traditional banking systems and payments networks, as cryptocurrencies allow for low-cost and fast money transfers. Additionally, cryptocurrencies offer an opportunity for investors to diversify their portfolios, adding speculative and alternative asset classes. Cryptocurrencies can also provide an opportunity for financial inclusion, allowing those who lack access to traditional banking services to participate in financial markets. Finally, cryptocurrencies have enabled a new form of financial market trading, often referred to as “crypto trading.” Crypto traders make bets on rising or falling prices of digital assets without actually owning them.