Apart from the novel coronavirus the most talked about topic this last year has the ship to cryptocurrency sailed? Cryptocurrencies are a digital currency stemming from a blockchain technology that allows for anonymity when dealing with exchanges of cryptocurrencies, https://quantum-ai.trading/. Therefore, they have been strangely popular.
However, this popularity reached its height when they were being hyped by social media. Several crypto enthusiasts could not resist the urge of sharing the knowledge in the field of cryptocurrency. Slowly it built a large fan base. Now, many people all over the world believe that cryptocurrencies are the future.
Even with such beliefs, no one could have anticipated the move of the Chinese government. In the May of 2021, the Chinese government issued guidelines prohibiting all trading and exchanging of cryptocurrency for all the financial institutions and payment methods in the country.
This move led to a catastrophic fall in the value of the market. When the market was enjoying an all-time high this regulation led to a significant fall in the market. In addition to this, Tesla also stopped the payment in bitcoin. Since then, the market has not quite recovered its original high and is slowly building its way up. However answer to has the ship to cryptocurrency sailed is that, this fall-inspired many people to start investing.
Valuation of Cryptocurrency
The crypto buffs started saying now is the right time to buy the dip. The expected valuation of bitcoin is estimated to surpass its value in May 2021 before the announcement by the Chinese Government. Many people looking at this speculation felt it was the right to step into the crypto game.
The markets have slowly absorbed the shock but they are still away from reaching their high point. With this in mind, many people believe that the dip in the valuation was the perfect time to invest in bitcoins. However, a lot of investors missed the memo and wonder if it is too late to start investing in crypto. You can also look at best cryptocurrency investment strategies for more information purpose.
High Volatility Rates
The best way to understand if you have missed the chance is by analyzing some common facts. The first is are you ready to trade in a market with such high volatility rates. There are many downsides to such high volatility while the obvious upside is turning greater profits in less time.
This would require you to watch the markets constantly to make the perfect profit. However, since most people engage in crypto investing only as a side job they do not have the time to continuously watch the rise and fall of the market. In such situations using exchanges such as Bitcoin Era may prove very beneficial for you. They are a secure trading app providing a lot of services to make the most of your money.
Invest in Cryptocurrency
In a recent report, the American giant Wells Fargo said that it is not too late to invest in cryptocurrency. The report highlighted that cryptocurrencies have effectively reached an adoption inflection point and the bank is expecting a massive expansion in the global adoption of cryptocurrencies.
Currently, we find that only about 3% of the total population of the world uses cryptocurrency. If the research holds, the bank expects cryptocurrencies to exit the early stage very soon and reach a massive adoption as previously seen with the adoption of the internet. However, the major drawback shall be regulations.
As we have seen crypto prices rise from meaning nothing to billion dollars worth the regular investors are still skeptical of the approach they should while investing in cryptocurrencies.
Another major hindrance is that currencies are usually for storing a value. With the high volatility, cryptocurrencies fail to provide this store value. Since they are so volatile, they are not stable assets. Another function of currency is serving as a medium of exchange. We still do not have many companies who would accept bitcoins as a true currency thereby limiting their use.
Given all this information has the ship to cryptocurrency sailed? It is safe to say that it is not too late to invest in bitcoins or other cryptocurrencies. However, it is highly recommended for you conduct proper research to analyze if you want to make the investment choice or not. Since there are so many risks involved you need to know all that you can about cryptocurrencies before, you finally decide to make the investment choice.
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