Crypto Digest: Bitcoin Growth, Danger Of Investment, Forecasts
Cryptocurrencies were one of the most rated topics of 2017. When in December 2017 the exchange rate of Bitcoin approached the shocking value of $20,000, the entire world learned about it. The popularity of crypto assets keeps growing. In this article we will roll out a brief digest of the most relevant recent news on the subject.
So, by March 5, the total capitalization of all cryptocurrencies exceeded the e value of 510 billion dollars. Bitcoin and Litecoin started demonstrating surge to respectively 11,500 and 260 dollars. However, despite this, the major crypto market participants warn investors about the danger of investing in this type of assets. What are the prospects for the development of the crypto industry in the near future? What should ordinary users wait for? How can average users make money on crypto assets? We’ll answer all these questions in this review.
The situation with Bitcoin
For the last six months, as a means of payment, Bitcoin has started significantly losing its positions. There were two obvious reasons for this: high commission (up to $10 per transaction) and a long processing of transactions. All of this provoked a decrease in investor interest in this cryptocurrency. It greatly contributed to the famous January tumble of its exchange rate. However, analysts have recently noted that there are currently indirect signs of the upcoming rebirth of Bitcoin.
For the last week a stable uptrend is being observed with the subsequent consolidation at the level of 10,000. In the second half of February, the total capitalization growth by 90 billion was recorded. It was taking place in the face of a positive information field and upbeat statements by state regulators in many countries of the world.
However, Bitcoin has become popular as a payment means once again. It became possible due to a dive in the average commission amount per transaction to a value of $0.79. We should remind you that in December 2017 the maximum value of this indicator was recorded – more than $20. As a result, some large payment services, including the payment provider Stripe and the developer of computer games Valve temporarily refused to use it.
On February 19, the local maximum was updated – the exchange rate approached the $11 500 mark. However, a decline is being observed for the last three days. However, at the same time, relative stability of the market is noted for a period of 10 days.
The future digital coin: Ripple
Ripple has an indisputable advantage over other crypto assets – the world’s largest banking corporations actively invest funds in this digital coin. Such deep integration with the real financial sector foreshadows a new payment means a great future. On February 21, official sources informed that the largest Latin American bank Itau Unibanco became another partner of this cryptocurrency.
The largest Brazilian bank is on the verge of using the blockchain technology platform from Ripple (xCurrent) as a platform for international payments. As for changes in the volume of capitalization, they generally repeat the trends of Bitcoin. It’s confirmed by the fact that until now all the cryptocurrencies have significantly correlated with Bitcoin.
The statement of the leading participants of the crypto market
In February a number of the largest players of the crypto market made very ambiguous statements. Vitalik Buterin, the founder of Ethereum, on Twitter posted that the value of all cryptocurrencies could fall to zero at any time. A similar statement was made by the CEO of Ripple, who noted that the vast majority of digital currencies would eventually depreciate, and it’s just a matter of time.
In fact, such statements don’t carry anything new. Everybody knows about high risks of investments in this type of assets. However, they are often underestimated. Don’t forget that when making direct investments in the cryptocurrency, you can get profit only if the volume of its capitalization grows.
Therefore, a considerable number of market participants prefer to earn in another way. Option trading is one of those ways. The advantage of this trading is that profit can be obtained on any market trends, even during negative trends, when capitalization is reduced. The main criterion is the correct forecasting of the price movement, which will allow you to get profit from the option. Even people who are far from the crypto world can earn this way. By the way, the asset CRYPTO IDX (crypto-index) from the broker Binomo gets along with technical analysis even in seconds intervals.