After remaining the hot cake for most of the season last year, the end of the year 2017 turned out to be a somewhat tumultuous one for cryptocurrency users, with bitcoin, the leading cryptocurrency, touching a new low of 6000$. But come 2018, and we already see a revival in its fortunes with bitcoin gaining around 2500$. This can be a sign of relief for the investors, but the fluctuation in its prices has also started creating doubts in the minds of the investors. It is kind of funny to see how news channels haven’t had proper 24 hours to report on the changes in the bitcoin value. Just when the prices touched 10,000$, and the reporters were going gaga on the recent development, Bitcoin already rose to 11,500$.
By the time the news outlets picked this story, reports of the crash in Bitcoin prices had started surfacing. These abrupt changes in Bitcoin value force one to think if the cryptocurrency is a real deal or merely a bubble. Adding to the confusion are billionaire investors like Warren Buffett who have warned people against investing in the cryptocurrency market and predicting its fall in the near future.
However, there are reasons aplenty why people are more confident about investing in the cryptocurrency market despite warnings from market experts, as defined in this free Ebook for dummies on cryptocurrency by SixPl. The following developments in the cryptocurrency market have strengthened their belief in this, thereby encouraging them to think about betting their money on cryptocurrency seriously.
- INCREASED INVESTMENT: An estimated 10$-12$ billion is expected to be invested in the cryptocurrency market this year. A more significant investment certainly increases the probability of better returns. This investment, coupled with the upward trajectory cryptocurrency has shown lately, can be a significant boost for the cryptocurrency market.
- BETTER REGULATION: A growing demand for better regulation has seen some increased control on cryptocurrencies lately. This in return has helped the investors build a better trust in the cryptocurrency market and providing them with much-needed confidence to invest in the same.
- MAINSTREAM USAGE: The growing disenchantment with the traditional banking system has helped the cryptocurrency market make some serious inroads in the daily transactions carried out between two parties. A transparent and active mode of operation has inclined the users towards using cryptocurrencies thereby creating a demand and supply chain. Higher demand will only add on to the value of cryptocurrencies.
Nevertheless, apart from all the hype associated with the value of different cryptocurrencies, cryptocurrency can serve us in various other ways. It has eliminated the need of intermediaries from transactions, thereby, eliminating the need of trust. No longer do we have to seek permission for storing and transferring data from one owner to another. As we all know, the value of cryptocurrencies isn’t in the tokens, but in the network that allows the exchange of these tokens to take place.
The hype created around the price aspect of cryptocurrencies isn’t unusual. Let’s accept it, we all love sensationalism!! So, it doesn’t really make much of a difference whether Bitcoin trends at 6000$ or 60,000$. Like the arrival of Bill Gates on the digital scene, cryptocurrency too is preparing a place for itself and is reaping the benefits of years of hard work put in by those geeks who volunteered to build this software thanklessly. Traders who had seen potential in the cryptocurrency market and had invested in it, are seeing manifold increase in their net worth. The sudden change in fortune was destined to happen sooner or later once the software began to be used on a broader scale. There is nothing unusual in such an upward trajectory of prices. What is in fact unusual is the hype created around it owing merely to its monetary value,
Cryptocurrencies can make people financially stable and independent. People with no capital can now pursue their dreams and help make this world a more equitable one. There could always be the possibility of the entire cryptocurrency market ending up in a financial bubble. Yet, there is also the possibility of the unfolding of the much significant event of the separation of the cash and the state.
The world of investing which was once owned by the rich and powerful and institutions and corporations is now open to millions of ordinary people who feel empowered by the free and transparent system of the blockchain technology. Cryptocurrencies have given the people a chance to make a fortune for themselves by investing a few bucks from their hard earned money here and there. This wasn’t possible earlier because they could not get through the rigid systems explicitly designed for the wealthy.
However, like any other human-made system, cryptocurrency has its share of risks too. Cryptocurrencies are open cybersecurity violations, and this can result in immense loss of fortune for people. Since the transactions are permanent and irreversible, feeding in a wrong address can send result in sending of money to the wrong people, thereby, resulting in a permanent loss. However, these issues can be fixed in due course of time.
There is undoubtedly more to cryptocurrencies than mere hype. Apart from the money aspect, there are a whole lot of reasons for us to be jubilant about the rise of cryptocurrencies. Therefore, merely focussing on the financial side of the cryptocurrency network undermines the entire venture. Believe it or not, cryptocurrency is the future. The cryptocurrency market may crash tomorrow, but the technology behind it will survive as long as it doesn’t become obsolete. It has the potential to make the existing banking system wholly redundant and disrupt other existing industries too. There is still a lot in store for the cryptocurrency users, and the cryptocurrency market is all set to grow at an unprecedented rate. When that happens is subject to speculation; however, there is no denying its inevitability.
Hi, I am Sandeep Kumar, a content writer at SixPL. My hobbies include watching movies, playing cricket, reading and surfing the internet. I like keeping track of the latest social media trends and other digital marketing developments.