It all started with bitcoin. An article published in 2008 by Satoshi Nakamoto, whose true identity is unknown, changed the global financial system without even knowing it. It began with a value of around a euro cent to reach 50,000 euros per bitcoin last March. A remarkable growth is only surpassed by the development of Ethereum, Binance, or Jobchain. Bitcoin is based on blockchain technology. It is simply a system that allows the execution of transactions between anyone without an intermediary. The market showed exponential growth in the last year. But the current crash, has created doubts in people’s mind, will the crypto market sustain in the long run, let’s find out.
Why is blockchain so important?
Blockchain raises the possibility of absolute financial freedom from the control imposed by financial elites. The use of blockchain technology is growing exponentially. Twenty-four hours running, it is anonymous and transparent.
The physical money, little by little, will disappear, and only with a mobile device can anyone manage their funds without any public or private entity being able to intervene. Almost 1.7 billion people without access to a bank account will have the ability to access financial services and countless decentralized services without the possibility of censorship: search engines, decentralized domains, such as the Ethereum Name Service, or recruitment and job search services.
Beyond cryptocurrencies, Blockchain technology has a future, as it is also being integrated into the mainstream. Blockchain has started showing potential in transportation, healthcare, and other major economic sectors.
The Current Scenarios and Uncertainties
The recent decision by Tesla has had a significant impact on the cryptocurrency market. It said it stopped accepting cryptocurrencies as a payment method. Just three months after communicating, it accepted them, causing a mass undercapitalization of the cryptocurrency market.
In addition, the frequent contradictory and enigmatic messages that Elon Musk brings further instability to the market. It plunged the price of bitcoin 10% to $ 39,802, falling below $ 40,000 for the first time since February. In addition, and from the maximum that it reached in mid-April at around $ 64,500, the most popular cryptocurrency has fallen 38.5%.
Thus, with this background, the market capitalization was very close to 2.3 trillion dollars last Sunday, May 16. However, later it has managed to grow slightly and has exceeded the barrier of 1.5 trillion dollars and is walking towards 1.75
What do experts say about the crash?
Rafael Q., a Financial analyst, considers that the environmental impact of mining Bitcoins was one of the most significant risks for the entire crypto market in recent months. Markets ignored the news that Bitcoin uses more electricity than Argentina and Norway in the past. Now it is picking up steam after comments from Musk, who also said that there is a possibility of accepting cryptocurrencies that use less than 1% of the energy Bitcoin requires. This may motivate investors to look for low emission currencies, destabilizing the leading cryptocurrency.
The impact that the news can generate may be short-lived due to the confidence of investors in the stability of Bitcoin. Therefore, some investors may take this decline as an opportunity to buy at a low price. Waiting that it continues to rise, in the medium term looking for the next momentum in the range of 70,000 USD.
Experts consider that Bitcoin and other cryptocurrencies might go down a little more for the moment, but it is sure going to rise again. In the coming months, the market will surely see growth due to the trust cryptocurrency investors have shown. Important to consider is that the bitcoin price has risen considerably the past year.
Investing in cryptocurrencies for the long term
Although there are controversial aspects that cause many to move away from cryptocurrencies. But some analysts seek to encourage investors to invest in crypto assets for the long term. However, it is a type of investment with a high level of risk.
One of the big cons of investing in crypto-assets is the fall in prices in the crypto market of the leading cryptocurrencies and the volatility they suffer like Bitcoin. The substantial fall that usually occurs in the price of cryptocurrencies in the crypto market is one of the great ones, but why do many large investors still hopeful about it?
The major reason for hope for crypto market investors is how convenient, safe, and transparent cryptocurrencies are. Also, the whole crypto market keeps on reinventing and is making it easier for the users with set-ups like Bitcoin ATM.
To know more about the ATM, just do a normal google search according to your country. For example,search for a Bitcoin ATM in Canada, and you will find all the relevant info available. Apart from buying new bitcoins and other cryptocurrencies, making a sale, or exchanging them for the local currency, they offer a quick way to carry out these operations 24 hours a day at their place of process.
The crypto market investor base is diverse and strong; from students with a part-time job to top businesses, everyone is involved. Such diversified investors are one of the important assets of the crypto market, and they are hopeful about the future of cryptocurrency.
Current future trends identified for Bitcoin based on the latest price trends seem to believe that it will close 2021 above $30,000 as there is a limit to how much prices can increase. For the most part, experts seem to have faith in its future potential.
The bright and promising future of cryptocurrency in this era of digital transactions is quite obvious. The transparency and the anonymity surrounding Bitcoin pose it as a safe and trustworthy option compared to others. It enables quick transactions, which is one of the many conveniences of digital currency, along with the fact that it is easy to set up.
Its market-determined value ensures economic equilibrium, and the currency is decentralized rather than under the control of one central authority. With so many desirable features and considering the surmounting price trends of cryptocurrency, it can easily replace the other modes of transactions that are presently in use. As experts predict, cryptocurrencies such as bitcoin will likely replace normal currency and become the primary form of exchange in the future.