CRYPTOCURRENCY: THE FUTURE OF MONEY?
Last year was a wild ride for cryptocurrencies. From the highs of Bitcoin at almost 20,000 in December to the lows of the current bear market, which has seen the value of most cryptocurrencies fall below 10,000, it has been a rollercoaster for investors.
Despite the volatility, one thing has remained constant: interest in cryptocurrencies has continued to grow. This is clear from the hundreds of companies all over the world that are trying to either raise funds using Cryptocurrency technology or are getting ready to start offering cryptocurrency-related services. But how will cryptocurrencies develop in the future? And why should you care?
Bitcoin’s value is still striving
One of the biggest developments in the cryptocurrency space this year has been the rise of bitcoin. As cryptocurrency grapples to make any meaningful move upward, Bitcoin momentarily reached $25,000, reaching its highest point in June, before plummeting drastically.
Despite the fall, the market capitalization of bitcoin remains well above the levels it was at in December when it was worth just over $10,000. The market has come to associate any price movements with the value of bitcoin, which has resulted in the cryptocurrency being heavily influenced by the market mood rather than any fundamental reasons for the price fluctuations.
Investors should be aware that while the situation for the price of Bitcoin remains volatile at $25,000, an impending bullish surge will be indicated by a daily candlestick closure above this level.
“Bitcoin keeps showing positive indicators, mostly because greater highs and lows are being made,” Vijay Ayyar, vice president of corporate growth and international at cryptocurrency exchange Luno said.
Ethereum upgrade, the Merge
The increase in alternative currency, or altcoins, is another factor contributing to bitcoin’s growth. Bitcoin’s gains were outpaced by Ether’s 56% month-over-month increase. This is due to investors’ anticipation of a significant, long-awaited improvement to the Ethereum network that could increase transaction efficiency.
The promising Ethereum update, known as the Merge, has dominated the cryptocurrency news over the past week. The purpose of the upgrade is to combine the best of the old and new Ethereum, with the hopes of delivering better scalability and further decentralization. It also enables the platform to better serve the needs of the current and future users. The Merge is set to happen on September 19, and while it is unlikely to be the end-game for the Ethereum platform, it is the next major step in the evolution of the platform.
Should you make a crypto investment?
Invest only in what you can bear to lose.
Investing in cryptocurrencies can be an exciting way to make money, but it is also cautionary. The stock market and crypto can be a great investment if you know what you are doing.
Some of the primary reasons to purchase cryptocurrencies include the opportunity to make large profits quickly, the ability to store value without relying on a central bank, and the potential to become a part of a new, decentralized economy. Not only that, but cryptocurrencies are becoming increasingly accepted as a form of payment, making them a great investment opportunity.
Nevertheless, it is always advisable to invest in cryptocurrencies with careful consideration in addition to a smart strategy. Investors should exercise caution when making investments, notwithstanding how intriguing cryptocurrencies are, as Elon Musk stated.
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