Why does cryptocurrency still rise in price?
Is it profitable to buy and store cryptocurrency?
A year ago, bitcoin was trading at $ 10 thousand, as at August 19 of this year, the value of the asset is $ 44.5 thousand. Over the past 12 months, cryptocurrency quotes have grown by almost 4.5 times. At the same time, in April, the price of the coin set a historical maximum at around $ 65 thousand. Experts from the most innovative cryptowallet in recent times, BitMarket Network Client, told whether it was too late to buy bitcoin, and explained the reasons why it could continue to grow.
What contains the growth of the crypto market?
The cryptocurrency market is currently in its initial, early stage. The cryptoeconomy as a whole is now beginning to develop, the market still lacks regulation and infrastructure. Also, the growth of the industry is contained by:
● High energy consumption: high cost of electricity and computing power;
● Lack of legal framework. Shortage of a unified method of state regulation of the sphere, international norms and practices;
● Lack of blockchain specialists of the required level;
● The monopoly of the big players. Large companies, international banks continue to use SWIFT, VISA, American Express and the usual banking services.
What perspective for growth of the crypto market?
Now the capitalization of the crypto market is $ 2 trillion, the gold market is about $ 12-13 trillion, the stock market is $ 80 trillion, and with all derivatives – another $ 20-30 trillion. The cryptocurrency market is now less than 2% of the total capital market. At the same time, there are many prospects for digitalization.
Cryptocurrencies are becoming more popular among investors because of their convenience.
● decentralized system. It is beneficial for mutual settlements in business and ordinary users.
● anonymity. One user may not know anything about the other, except for the wallet address.
● low commission. Unlike bank transfers, a large percentage is not charged, since the system is supported only by the participants.
As a result, the crypto market should take at least 5-6% of the total market. And if this is so, then there is already a two-fold, three-fold increase from the current volumes, the specialists predict.
Is it too late to buy cryptocurrency?
In fact, it is not too late to buy Bitcoins or any other digital money, but on the long-term investment condition (3-5 years). Now institutional investors and large funds are buying cryptocurrencies, and their investments give the market a growth stimulus. At the same time, the specialist warned that it is not the best time for short-term investments, since the crypto market is extremely volatile. Although it has prospects for growth and updating of historical highs.
Large investors and funds express confidence in the crypto market. Cryptocurrencies are backed by financial institutions, exchangers, exchanges and miners. And the more actively the infrastructure develops, the faster the bitcoin rate will grow.
Cryptocurrency can be compared with Apple, Amazon or Microsoft stocks, which are actively growing in value. There is now a great demand for cryptocurrencies, and the market is still at the beginning of the journey.
Where is it safe to keep digital coins?
Before buying electronic money, you need to find a suitable cryptocurrency wallet. It’s best if it can store not only bitcoins, but also other popular digital money such as Ethereum, Tether and Litecoun. It is also important to have two-factor authentication. This allows you to reliably protect the storage from any hacking attempt. Among the huge variety of types of wallets, it is better to choose desktop ones, since they are the safest. Now they can be stored not only on a PC but also on a flash drive.
Most recently, a multi-currency Bitmarket Network Client wallet has appeared on the crypto market. It is in the alpha version at the moment. Not only the service’s developers, but also everyone can take part in the creation of the wallet. This Blockchain wallet has an open source where anyone can check the reliability of the storage.