You may have heard the news that the price of bitcoin has reached an all-time high, but you’re probably wondering what this means for the future. Will bitcoin continue to skyrocket? Will the top 10 currencies reach the same heights? What will happen to the market cap of cryptocurrencies? The answer to all these questions lies in our future.
The year 2017 was a wild ride for cryptos! You may have heard of the bitcoin price going up by 1,000% in one year. Or maybe you heard about the crypto market crash in 2018! Fortunately, the crypto market has rebounded and become a hot topic all over again. Here are 5 reasons why we think the market will continue to flourish in the next decade!
During what is sure to be a memorable year, we’re looking forward to a fresh start and the next exciting chapter of cryptocurrency and blockchain. We’ve seen some major growth in the space as prices have risen to new all-time highs. These incredible price increases have been unheard of in such a short time. With the cryptocurrency market cap at a record high of nearly $800 billion, we’re witnessing the evolution of an industry that has the potential to change the world.. Read more about new cryptocurrency release 2021 binance and let us know what you think.Challenges promote progress. Technology, like life itself, cannot be static. Only dynamism makes positive change possible. When the cryptocurrency market crashed in mid-May, many retail and institutional investors began to lose faith in the bright future of cryptocurrencies in general and bitcoin (BTC) in particular. Corporations and institutions, whales and early adopters came together in unison as a wave of distrust swept across the internet about the number one cryptocurrency, considered the best protective asset, superior to gold and everything else invented before it. You have to look at the big picture to understand what’s going on. The last time the market suffered more or less similar and significant losses was a year ago, in March 2020. This year’s panicked selloff, triggered by a series of negative events – Elon Musk’s Twitter crusade against BTC, rumors of a lawsuit against Binance, and the Chinese government’s recent crackdown on cryptocurrencies – is reminiscent of the big collapse of digital assets at the top of many assets in December 2017 and the cryptocurrency that followed. Related: Expert response: How is Elon Musk influencing the crypto-currency space? However, many people with little knowledge of how the cryptocurrency market works don’t realize the profound changes that have taken place in recent years. Emotion is the biggest enemy of the investor or trader in the rapidly growing ecosystem of digital assets. It’s worth taking a sober look at the facts and analyzing the changes to understand the true value of the ecosystems that are developing on the fertile ground of blockchain.
Winds of Change
The mindset of investors has changed in recent years. Although the equation is still dominated by a highly speculative component, it does have a practical application. Investors have switched from short-term speculation to long-term gambling. The number of bitcoin ATMs has doubled since 2020. This increase clearly shows the growing demand for the world’s largest crypto assets. The cryptocurrency industry has grown from a niche to a billion dollar industry. Stablecoins – tokens linked to a corresponding fiat asset such as the US dollar, euro, etc. – gained popularity in 2020-2021. With the emergence of new platforms known as decentralized finance protocols or DeFi, there are ways to offer risk-free returns such as. B. the underlying. These platforms are nothing more than distributed programs offering clearing, custody and settlement services. Every year they take a bigger slice of the pie away from traditional financial institutions. Another reason for the increasing activity on decentralised trading venues is that their infrastructure does not have the same general vulnerabilities as those of centralised trading venues. Decentralized exchanges have surpassed centralized exchanges in terms of trading volume, with a thousand-fold increase in volume last year alone. DeFi’s interfaces can be created by any programmer anywhere in the world, and the essence of this interaction is the development of a financial ecosystem running on a global blockchain. To date, DeFi’s market capitalization has reached over $100 billion, a trend that is sure to continue in the near future. Related: The arrival of DEX robots: MSAs call for an industrial revolution in retailing Speaking of examples: Even large companies like Deutsche Telekom have moved away from private blockchains and are exploring public infrastructure by supporting nodes on networks like Ethereum, Solana, Algorand, Celo, etc. This suggests that decentralised finance is gaining ground in the global market for clearing, custody and settlement services – just as bitcoin previously cemented its status as a safe asset and knocked gold off its throne. We note that business demand accelerated when real dollar deposit rates turned negative (central bank rate minus inflation). Inflation expectations have tightened over the past year, fuelling demand for long-term capital preservation. Bitcoin is now not only winning the hearts and minds of speculators and hedge funds who, aware of the inevitable devaluation of dollar balances, are voting with their money and transferring some of their cash to digital assets. Related: Predicting the price of bitcoin with quantitative models, part 2
There are still problems
Meanwhile, divergent regulatory approaches continue to exist. Some jurisdictions have developed legislation, but it is not practically applicable. At the same time, other countries are just beginning to regulate, and some are banning the use of cryptocurrencies – the recent example of China is a good one. In the US, for example, banks are allowed to offer custody services for cryptocurrency assets. Emerging economies like China, Russia and India are on the sidelines, rushing from one hot spot to another, perpetuating uncertainty and trying to promote something at the state level by offering potential investors a so-called technological windfall. Unfortunately, in practice, all projects around the world are often transferred to other jurisdictions – which is very unfortunate. Related: Stable currencies pose new dilemmas for regulators in terms of mass adoption. The future of the cryptocurrency industry is certainly optimistic. Each phase of price shaking and price unloading, of correction and decline, should be seen as a new evolutionary cycle. In the near future, we can expect investors to move away from closely watching the market, hyping currencies (which has no value to society) and anticipating new price records, and towards building assets in developing regions. The cryptocurrency industry expects more user-friendly, reliable and accessible interfaces for mainstream investors interacting with the digital asset market, as well as generation 3.0 blockchains, for which competition will be fierce in the coming years. This article contains no investment advice or recommendations. Any investment or business transaction involves risk, and readers should do their own research before making a decision. The views, thoughts and opinions expressed herein are those of the author and do not necessarily reflect or represent those of Cointelegraph. Grigory Klumov is an expert on stable currencies, whose thoughts and opinions appear regularly in numerous international publications. He is the founder and CEO of Stasis, a technology provider that issues the most popular stable euro coins in the digital asset sector with a high degree of transparency.The year 2021 brought us many things. The growing hype about cryptocurrencies, the rise of the digital economy and much more. As the year comes to an end we seek to have a deeper insight into the year that was and the year to come.. Read more about 2021 new cryptocurrency and let us know what you think.
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