Blockchain technology is a critical infrastructure for the existence of cryptocurrency and arguably one of the reasons why cryptocurrencies exist. The two are different, but they are essentially part of the same system.
Blockchain technology, therefore, affects traders directly but there are other ways that cryptocurrency traders benefit from the technology. It not only supports the existence of digital currencies but also facilitates the transfer and storage of funds, therefore making it easy for crypto investors to trade.
Blockchain’s Impact on Cryptocurrency Value
The value a cryptocurrency also seems to be related to the popularity of the blockchain on which it is operated. Technically, the value of a cryptocurrency will be higher the more its blockchain is used. Introducing a blockchain technology to a consumer base is also an important step towards introducing an associated cryptocurrency.
A popular blockchain thus helps generate more value for cryptocurrency investors. This is a good reason for digital currency investors to support blockchain development so that in the long-term they will benefit from the value the technology will add to the involved cryptocurrency.