Governments Cracking Down On Bitcoin
One of the great fears for cryptocurrency markets has always been that governments across the globe will shut them down, rejecting their acceptance and production. And this time is already here.
Many countries across the globe, especially China and some countries in Europe, are cracking down hard on bitcoin miners and bitcoin trading.
It happened in May 2021, and it has brought a downfall in bitcoin prices. But according to some experts, it is because China wants to see its own digital currency flourish.
Other countries like Singapore, Iran, and Estonia have also cracked down on bitcoin. If more and more countries began to start these crackdowns, bitcoin or any other cryptocurrency would not survive for too long.
How Do I Pick A Winner
At a glance, the cryptocurrency market can be an overwhelming place, especially for those not well-versed in it.
Much like the internet boom of the early 2000s, thousands of blockchain-based projects are being developed, and loads of confusing jargon and technical slang are being shared far and wide.
This makes it near impossible to pick the next Amazon or Google of the cryptocurrency world and tougher yet to hold onto them for a sustained period of time.
One way to lower your risk investing in the cryptocurrency space is to own a diversified basket of the top 10 cryptocurrencies that gets automatically updated every month.
Currently, the top 10 cryptocurrencies account for 75% of the total cryptocurrency market capitalisation, so youll gain exposure to the broader growth in the crypto market and not be heavily dragged down by any individual cryptocurrencies.
Another factor to consider is how much the top 10 has changed over time.
Over the past 8 years, only 3 cryptocurrencies have managed to stay in the top 10: Bitcoin, Ethereum, and Ripple, and only 1 was able to significantly grow its market share .
A prudent investor should seek an investment product that helps capture these changes and thus keeps the investor well-diversified across the crypto universe at all times.
Now, we know many will say that if you only held Solana or Luna you wouldve outperformed everyone, but the truth is hindsight is 20/20.
- The Solution: The Revix Top 10 Bundle
Waiting For Appreciating Price Movement
From the past decade, these digital currencies have been registering great performances. This is one of the reasons why many people are buying into them. From various reports, you can see many people regret selling their cryptocurrency assets too early before their maturity. One thing that you may learn from such occurrences is that you need to be very patient with crypto if you want the best results. This is the best approach for long-term investments.
An essential thing to know is that not all crypto units will appreciate it. The top ten units in terms of performance are relatively stable. However, there are new entrants, which may lead to a loss. It means you should always be keen on the units you invest in.
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Stormgain Users Grow With The Cryptocurrency Market
BIC: Have the bitcoin spikes had a big impact on StormGains customers?
AA: In the first quarter of this year alone, we saw a huge increase in the number of new clients: a million registrations in 3 months! These results are unbelievable. We are continuing to grow, and, already by this April, we have over 700,000 new user registrations.
We always think of the customer first and want to share our knowledge of the cryptocurrency market so that more people can afford a more comfortable life.
One of our favorite tools is the in-app miner, which allows our users to earn cryptocurrency without additional investments. Many people are attracted to this feature first because its the best solution for their first steps in working with cryptocurrency.
We also provide a $50,000 demo account for clients to get acquainted with trading. This allows people to dive into the world of cryptocurrency at no cost, try it out and decide if theyre ready to enter the market.
A team of cryptocurrency market analysts also help our clients make money with StormGain. We provide a wide range of tutorials on the platform, in the app, and on the site. That helps new users get more easily acquainted with the intricacies of cryptocurrency trading.
The Believers Versus The Skeptics
Nick Maggiulli, chief operating officer at Ritholtz Wealth Management, said in a Tweet that there are two types of Bitcoin owners: speculators and believers . Knowing which camp you fall into may help you determine if its too late for you to buy up cryptocurrency.
Some investors see Bitcoin as the ultimate form of money the gold 2.0 believing that its durable, will retain its purchasing power and can be easily sent and stored, says Chris Kuiper, vice president of equity research at CFRA Research in Rockville, Maryland. Theyre the believers. Richard Smith, CEO of the Foundation for the Study of Cycles, for instance, says that cryptocurrency is going to be the basis for a new version of the internet. Theres a lot more to come, so its definitely not too late to get in on cryptocurrency, and this pull back may be a good buying opportunity, he adds.
But there are plenty of reasons to be skeptical, like the potential for regulation. On top of the news that China is cracking down on crypto, Indias government may also set up a panel of experts to study potential regulation of the digital coins, The Economic Times reported. In the U.S., the Chairman of the Securities and Exchange Commission and the Treasury Secretary have both expressed concerns about investors best interests when it comes to cryptocurrency.
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Why Is The Crypto Market Growing
The crypto industry has come a long way since the founding of Bitcoin, with over 4,000 cryptocurrencies available on the market. They range across the board from DeFi to stablecoins, NFTs, and more. Even with this surge in expansion and media coverage, many think we are in the early stages of the industrys growth.
Perhaps the biggest sign of crypto market growth is the way its affected the institutions surrounding it. Crypto adoption has increased, especially recently, because it is garnering high-impact use cases due to mainstream demand.
Investment firms, banking institutions, and businesses alike are trying to find ways to incorporate it into their portfolios and payment options. Governments, in particular, are beginning to give serious attention to the use of stablecoins as CBDCs .
While the volatility of the crypto market may cause more reserved investors a preliminary pause, even conservative banking platforms are beginning to suggest incorporating cryptocurrency investments for portfolio diversification. With so many use cases and offerings developing daily, crypto continues to make its way into more diversified households and portfolios.
Where Will Bitcoin Settle
BIC: So, are you saying that the impact of cryptocurrencies will only grow? What is the bar that bitcoin will eventually settle at?
AA: In general, the increasing influence of cryptocurrencies in the world is obvious. The increasing complexity of mining and price hikes are involving more people in the process and make cryptocurrencies increasingly popular.
Everyone is trying to find new uses for blockchain, making the product continuously more complex. All in all, given the current market share and turnover, bitcoin could grow by more than 1,000 times.
But predicting anything is difficult, and I dont want to give a prediction on what it will do or when to expect an increase or near-term drop in its price.
In the long-term, we can certainly expect bitcoins price to rise. By 2025, the price may reach $150,000.
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Let’s Take A Look At What History Says About Investing In Bitcoin And What Hints It Has For The Future
Bitcoin has just broken through its previous all-time-high price and continues to set new records in 2021.
It started the year at US$30,000, before setting a record high of US$64,000 in April, and recently eclipsed the April record to US$67,000 in October, with potential for further growth before the year is out.
Understandably, such big price movements can seem daunting for those just entering the crypto space, and many may be wondering whether they missed the boat.
While everyone’s circumstances are different, and you need to consider your unique financial position before investing, Bitcoin is still within reach for many.
First things first, know that everyone has grappled with the question of whether they are too late to invest in bitcoin.
Ask yourself this: if you are planning on holding bitcoin for 5-10 years, or even until retirement, will it matter if you bought at $30,000 or $60,000? Chances are, you are buying it because you expect it to grow even further over time.
So, let’s start at the top, pun intended.
Cryptocurrency Sees Impressive Growth
BeinCrypto : Alex, is it worth selling bitcoin now?
Alexander Althausen : I cant tell you whether or not you should sell bitcoin now. It all depends on your investment strategy.
Cryptocurrency trading volumes are growing, and, as you know, the crypto markets capitalization just recently exceeded $2 trillion. Bitcoins capitalization is $1.1 trillion, ethereum is in second place at $245 billion, and binance coin is third at $58 billion.
With only one in 1,000 people having cryptocurrencies right now, the level of distribution of cryptocurrencies is 0.01%. The cryptocurrency markets potential for development is huge. Given the current market situation, just imagine a 1,000-fold increase in distribution.
There are already more than 500 exchange platforms, and their number is growing every day. Coinbases trading volume exceeds $1 billion. In such a situation, it is hard not to get interested in making money from cryptocurrencies. A lot of people in this sphere have already managed to collect very tangible capital. Crypto trading is one of the ways to make money.
Now that bitcoin is showing dramatic growth, increasingly, more people have become interested in cryptocurrency trading. Theyre not just interested in bitcoin theres also ethereum, binance coin, ripple , and smaller currencies with good growth potential.
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How Do I Protect Myself
If youre looking to buy a cryptocurrency in an ICO, read the fine print in the companys prospectus for this information:
Who owns the company? An identifiable and well-known owner is a positive sign.
Are there other major investors who are investing in it? Its a good sign if other well-known investors want a piece of the currency.
Will you own a stake in the company or just currency or tokens? This distinction is important. Owning a stake means you get to participate in its earnings , while buying tokens simply means you’re entitled to use them, like chips in a casino.
Is the currency already developed, or is the company looking to raise money to develop it? The further along the product, the less risky it is.
It can take a lot of work to comb through a prospectus the more detail it has, the better your chances its legitimate. But even legitimacy doesnt mean the currency will succeed. Thats an entirely separate question, and that requires a lot of market savvy.
But beyond those concerns, just having cryptocurrency exposes you to the risk of theft, as hackers try to penetrate the computer networks that maintain your assets. One high-profile exchange declared bankruptcy in 2014 after hackers stole hundreds of millions of dollars in bitcoins. Those arent typical risks for investing in stocks and funds on major U.S. exchanges.
» Learn more: What is bitcoin?
How Many Cryptocurrencies Are Available
After you understand the concept of cryptocurrencies, you need to pick the most suitable one to put your investments in. At the moment, there are almost 7000 different crypto units to pick from. The most popular ones include Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Their popularity is due to their value in the market.
When you want to pick an ideal unit, you should pay attention to its performance, paying attention to its volatility. Depending on your investment strategy, you can pick the most volatile or the most stable currency. We will look at this later on in this article.
You should expect newer crypto units to come up as new ones get launched each year through initial coin offerings.
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Investors Eye On Cryptocurrency
Cryptocurrency has created a pivotal role in the business and the market. Investors and companies are also looking for this digital currency as they know that cryptocurrency will rise in 2022. Most investors are taking their profit or investing in the business through digital currency. If the same trend follows, you will see a hike in cryptocurrency. Even the chairman of Squared Finance, Phillippe Ghanem, said that its the beginning of cryptocurrency and its not too late to invest in digital currency. However, he favored Ethereum rather than Bitcoin.
What Of The Security Issue
One of the things that deter many people from getting into the cryptocurrency market is the issue of security. Courtesy of them being digital currencies, most think that they are prone to online attacks. On the contrary, crypto units are some of the most secure, especially if you have the best cryptocurrency wallets. Many businesses, mostly online, accept crypto units as a mode of payment as they are not reversible. It makes the transaction less prone to fraud.
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Its Not Too Late To Start Investing
BIC: So, do you think its not too late to start making money on cryptocurrency? How would you advise beginning traders to get started?
AA: Of course, its not too late. Cryptocurrency is still in its infancy. It is becoming more widely available and soon will not be a privilege or choice but part of everyones daily life. This is precisely the time to get ahead of the game.
If you start working with cryptocurrencies now, when they form even just 20% of the market, youll be a professional with a huge number of opportunities to earn money. Working with crypto is a great chance to lay the foundation for your future.
I would advise new traders not to be afraid and to try different areas and use various instruments. Our system contains a lot of tutorials on any questions a newcomer to the cryptocurrency market may have. Learn basic technical analysis and methods of building trading strategies.
Try your hand and apply your knowledge. Always keep up with the news. Stay up to date and conquer new horizons.
Monetary Easing By Global Central Banks And Mainstream Adoption By Big Financial Institutions Are Driving Up The Cryptocurrencys Price
Less than 4 per cent of the worlds population holds Bitcoin and only 21 million Bitcoins will ever be created. AFP
A lot of people still do not get the point of Bitcoin. They say it does nothing that could not be done before. That it has no intrinsic value. That it is dirty, both in terms of emissions and the way it is used by criminals.
The charge sheet against Bitcoin is a long one. The cryptocurrency is volatile and its price movements are impossible to predict or explain, even in hindsight. The market is dominated by a handful of investors known as the whales, who can shift the price at will, or in the case of Tesla founder Elon Musk, with a single tweet.
Yet even its harshest critics have to accept that with a market cap of $1 trillion, Bitcoin has made its point.
It has survived scorn and derision from the great and the good from Warren Buffett to economist Nouriel Roubini, who reckons the Flintstones had a better monetary system.
Now, it has even withstood a regulatory clampdown from China, which shut down Bitcoin miners or drove them abroad.
Matjaz Skorjanc, founder of cryptocurrency platform NiceHash, suggests that Bitcoin has actually benefited from this. It is even stronger now that governments see it as a threat, since that proves that it works.
On July 20, the price dipped below $30,000. At the time of writing, it has almost doubled to $60,000. Some reckon the price could soon hit $100,000 or $120,000, but have you left it too late?
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Its Too Late: Governments Are Cracking Down
One of the fears of entering the crypto market has always been that governments around the world will shut down acceptance and even production of the coins. That time may already be here. In late May 2021, China began cracking down hard on bitcoin mining and trading, which sent crypto prices cascading downwards. According to Boris Schlossberg, managing director at BK Asset Management, the primary reason for this crackdown was because Chinese authorities are keen to see their own digital currency in the form of the yuan become the primary unit of account in the Chinese economy.
More recently, countries as far-flung as Estonia, Iran and Singapore have launched crackdowns of their own. If other governments follow suit, demand and support for Bitcoin and other cryptocurrencies could crash.
The Economy and Your Money: All You Need To Know
Tokens: Digital Assets Of All Kinds
Tokens are a wide-sweeping term and typically refer to altcoins that are tokenized on the Ethereum blockchain as mentioned above. For example, most DeFi applications and their related tokens are built on the Ethereum blockchain as ERC20 tokens, and require ETH gas fees to make transactions on each individual second layer protocol.
Just about anything can be tokenized within a smart contract, including stocks, bonds, real estate, and even Bitcoin. Thats right, even Bitcoin can be wrapped in Ethereum to create WBTC or Wrapped Bitcoins.
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