The past twelve months have demonstrated political landscapes that have shook and shocked countries around the world, going against all that had been predicted – with two surprise presidential triumphs in Trump and Macron, Brexit and a snap general election. And as we all know, in times of uncertainty, cryptocurrencies surge – it seems that there may never have been a better time to consider cryptocurrencies as a tempting form of investment. Could it be that all of the political changes we’ve seen and are yet to see have led to the monumental milestone of the Cryptocurrency Market surpassing US$55bn? And what could be around the corner for the upcoming 12 months? Here, we find out…
The magical $55bn mark (and a market that bucks a single trend)
The market cap (the figure that represents the value of the entire cryptocurrency market) has surged, up from US$40bn just a month ago, to an unprecedented $55bn today.
This is a huge jump in numbers compared to last year and this is something that was unheard of in the cryptocurrency field which goes on to show that this is indeed a good investment that people should try out and visit Blockchain.org website at regular intervals to ascertain market fluctuations that would inspire them to take up new ventures in Bitcoin.
Perhaps most notable about this was the fact that this increase wasn’t down to Bitcoin alone (as it has been previously, before many other viable cryptocurrencies entered the market). The question then is why we are choosing to consider so-called alt-coins over and above the granddaddy of cryptocurrencies? Let’s find out…
In times of uncertainty, investors look for a safe haven
Nothing seems certain in any political landscape, and with the Europe elections looming next year, we can presume that markets around the world will continue to give investors the jitters.
Expert analysis has stated that this uncertainty has driven a 13% growth in virtual currency, and has led to Bitcoin now being worth more than gold (the timeless favourite of investors seeking a sure thing investment wise).
“Bitcoin has more than doubled its value since the beginning of the year,” In the past, bitcoin has acted as a safe haven for investors worried about political instability and the performance of other asset classes”
Taking a look at Bitcoin and diversification
While Bitcoin continues to be the market leader in the realm of cryptocurrency with a market cap of US$28.88bn we need to remember that each Bitcoin is currently valued at $2,211.56, whereas 10 days ago it held a value of $1, 68, with performance that continues to surge then suddenly stagnate. This is a prime example of the undisputed fact that a digital asset can never increase without experiencing resistance.
All of which is leading to a market of smart investors who are diversifying when it comes to their currencies – a strategy that is used in any realm of investment, be it in the digital world or in traditional stocks and shares.
NEM, Lightcoin and Ripple are each perfectly placed examples of digital assets that are grabbing attention on the market – Ripple being perhaps the poster child for how cryptocurrency millionaires can still be made overnight.
So, just where are we heading to next?
Onwards, upwards and into the mainstream?
In short, up. More and more investments are being made into cryptocurrencies and we’ve well and truly surpassed the times where they were considered outside of the mainstream. We’re actually surprised that governments haven’t as yet taken on serious efforts to regulate or somehow tamper in this area – although with the great global changes happening right now, perhaps they have other matters on their mind (for now at least).
Investors must be seriously informed when they choose their digital assets
The cryptocurrency market remains unpredictable, and can take a big hit with only a little jitter seen when unwanted news is released by the U.S. Securities and Exchange Commission. Ultimately this means that investors must be informed and dedicated to a continual education as to what’s happening in the markets and why (as well as having solid resources for expert insight and predictions).
“In a reminder of just how fickle the market for such new-fangled assets can be, just after 4 p.m. Friday, the Bitcoin price took a U-turn and plummeted to lows not seen in months, dipping below $1000 to as low as $980, after Bitcoin investors received some bad news from the U.S. Securities and Exchange Commission”.
Cryptocurrency acceptance is going to grow
Hopefully, at long last, we’ll soon see retailers and organisations beginning to accept cryptocurrencies in significant numbers. We say this as recently the University of Ohio began to accept Bitcoin for courses, after which numerous other colleges followed suit, while over in Japan legislation has recently been passed to allow retailers to accept cryptocurrency (and as a nation of innovation, we predict that this will be the first nation to fully embrace crypto on-masse. Finally, we look to Hungary, where bitcoin cash machines are being installed – a world first, no less. All of which may mark a turning point for this industry.