On May 15, the price of Bitcoin was more than $8,200, and then it plummeted by almost 20% in a matter of two days. Then it rose again, and at the time of this posting, the price of the coin was shy of $9,000 mark. That is a volatile journey.
Typically, the "Experts" are back to prophesying Bitcoin will pop to $10,000 by the end of May and will hit $100,000 sometime this year. No one knows where the coin will continue. As with virtually all speculations, it could advance considerably higher from hereabouts, or lower, or hit the standstill.
Long-time Tradingsig.com readers remember that we are not anti-cryptocurrency advocates. A blockchain decentralized financial system entirely aligns with our ideology of diversification, freedom but no stupidity.
A couple of years back in 2017 when the worldwide craze of cryptocurrency took place, there was an incredible mass of madness and stupidity, there were people getting out loans and even second mortgages on their homes to purchase Bitcoin or other cryptos.
Not to mention how many scams galore was there, a matter of fact to the point where incredible number email spammers sent out billions of advice messages urging people to purchase some Initial Coin Offering (ICO) cryptocurrency or new token.
Many tokens and cryptocurrencies were being conceived daily, and there were so many that at one point there were tens of thousands of them on the market, frequently being supported by various celebrities varying from Paris Hilton to professional boxer Floyd Mayweather Jr.
It was a classic mother of all bubbles mentality, people of all walk of life rushing into the crypto market who did not know a thing about cryptocurrencies - Within several months, they all got stung very severely.
Presently as the cryptocurrencies prices are climbing higher once again, these very same people are beginning to sense the FOMO (Fear of Missing Out), and wondering whether they should hop in back into the market, on the assumption that this time will be different.
Remember that, over the medium and longtime event, that price of just about everything is determined by supply as well as demand.
When we glance at Bitcoin and other various cryptos, the practical question to examine is this: will this crypto coin will be used by more people in the imminent future? Or much fewer people accepting/using it?
And we are speaking about the real, actual 'use.' Unfortunately the vast bulk of cryptocurrencies transactions now days are mainly speculative betting on whether the price will rise or not.
It is mostly only gamblers exchanging (selling) these crypto coins to one another - and that is not actual usage. What we are discussing is being capable of purchasing food and conducting another majority of transactions of purchases in our daily lives with cryptocurrencies.
However, there are some encouraging indications that this might lastly begin to occur. For example, stores like Whole Foods and many others are starting to accept Bitcoins via an app which has partnered with the company named Gemini of famous Winklevoss twins.
That is unquestionably very beneficial in terms of real crypto coins usage/transactions in significant mainstream retailers stores. Also, Facebook is promoting its development of a crypto coin, which will be accepted with its messaging program WhatsApp - Given Facebook's over two billion members worldwide who could fit as a potential user.
These current developments lead us to think that there is a high possibility we will witness much more appropriation and application of cryptos soon, which is by the way why we remain overall very bullish.
Although just because there seems to be a big future for cryptocurrencies does not imply that any particular crypto coin is going to be an excellent investment venue. Bitcoin, in particular, is considered the most sought-after crypto token, and the one which most people around the globe procure when they are first involved in cryptocurrencies.
Bitcoin is the earliest of the dominant cryptocurrencies developed, which suggests that it is the most technologically less important and simultaneously the limited in value.
Be careful of those facts before hurrying back into the crypto investment arena. There are many crypto tokens and coins out there, many of which possess superior technology and a lot more particular uses: such as privacy, information sharing, financial clearing, et cetera.
Many new coins and tokens will hit the cryptocurrency market, including proprietary tokens produced and developed by technology and financial behemoths such as JP Morgan, and Microsoft.
Acquiring knowledge is perhaps the safer alternative now. Before diving in, in any cryptocurrency investment, take the occasion to truly study and learn about the crypto developments, the market itself, and how to safely acquire and keep it safe your digital assets - the advances in the financial system will be huge.
By the way, crypto tokens did not die when Bitcoin prices crashed to low $3,000 level; they are also notably far from reaching their full potential. A different financial time point will arise, a new era will begin when least expected - The world will transform into a new monetary system.
The new system won't be paper-based. When the event happens, that destroys the paper-based monetary system or the faith-based system and confidence cracks. You're going to have immense exodos into something that holds value.
Blockchain technology will become the subsequent "Go To" in terms of financial transactions. Therefore, blockchain technology, meaningful cryptocurrencies, and precious metals, those assets are going to become the future because the former dies. Hence any investment in your education, knowledge, and preparedness will repay big dividends into the future.