Some people find it difficult to believe that Cryptocurrencies and Bitcoin, particularly, are here to stay in the long run. While this is a misconception or not, it is hard to say at this hour. The first Bitcoin was mined in 2009 and today we hear about Bitcoin everywhere because of the high prices and cryptocurrencies taking a lot of preference in digital platforms or internet of things. It has been observed that virtual currencies have been evolving in the economy for a much longer time. So, thinking that Cryptocurrencies and Bitcoin will soon fade away seems like a myth only.
It is worth noting that a revolutionary aspect can drive any specific area in today’s time. For instance, who thought that Amazon can emerge as a giant retailer that has now shaken the market at diverse levels. Then technology juggernaut, Apple will be among the top tech players. Likewise, with marketing aspects, Uber has been a great success in its sector. Similarly, what many believe is that Bitcoin and Cryptocurrencies do have the potential to shake up the financial market, and a glimpse of this was already reflected in 2017 while 2018 so far has been quite volatile.
For instance, price of a Litecoin was seen to move up to $45.81 from $27.42 in a span of three months while it sits around US $149. Recently, UK-based crypto exchange London Block Exchange has boosted the bitcoin cash with the addition of alt coin. As a result, Bitcoin cash moved up about 14% in a day. So, it is not necessary that this trend will continue, but it may happen that you may lose to earn some return which you wished yesterday. Therefore, it is not too late to invest but you should have a high appetite for risk considering the drastic swinging in either direction. The recent blockchain Economy World Tour conference in Sydney has in fact thrown up some light on the potential of the cryptocurrencies.
Considering that out of total capitalization of the cryptocurrency market ($240 billion as on 20 November 2017), Bitcoin market capitalization accounted for $135 billion, the cryptocurrency has a good dominating share. Bitcoin also known as ‘Digital Gold’, is mined via online miners and some use it as a hedge against other markets, so it will be hard to say that the cryptocurrency will vanish or lose potential overnight. Thus, a steep rise in 2017 followed by 50% loss since last year and into 2018, does not indicate a persisting softness. One should be mindful that any revolutionary aspect needs to undergo thrashing before being widely accepted as the aspect may support a big change to the system.
In the 15 months period, the aggregate value of virtual currencies has rocketed from less than $18 billion to about $334 billion and as a result stock markets have gained a lot during the period. However, cryptocurrencies have shed 70 per cent of their market cap since January 7, 2018 with many diverse opinion emerging up. The aggregate value of all virtual currencies has risen from $600 billion to about $613 billion by end of last year before getting wiped a bit in 2018. Thus, holding Cryptocurrencies over a long period of time has worked wonders for some investors. Bitcoin which once traded at below $1 per token climbed to around $20,000 per coin in December 17 and if we look at other currencies like Ethereum and Ripple, these also jumped up tremendously.
While the current scenario may be termed as an overhyped one, investors may look across the specific dips to take advantage at the appropriate time when the market turns favourable.
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