An overview of the year for cryptocurrency
Cryptocurrency has been one of the most popular topics of 2018. Although cryptocurrency had started getting attention since the end of 2017 when the price was at the all-time high of almost $19,000 per coin. During this time a majority of investors put their money into Bitcoin, hoping that the price would increase in 2018.
However, the year kicked off with a sharp drop in the prices of almost all cryptocurrency. Bitcoin dropped to as low as $6,400 during the year 2018 which in turn resulted in other altcoin’s value dropping to over 80% in some cases. There is a lot of uncertainty in the world of cryptocurrency.
As reported by Theoofy the new US tariff will have an impact on cryptocurrency mining too. Different countries are trying to regulate cryptocurrencies, while others are staying out of the picture. Consumer confidence plays a vital role in cryptocurrency, and because of the falling prices, consumer confidence is low. Despite the hazy future of cryptocurrency a few experts seem to think that now might be the best time to invest.
One of the most significant issues with any cryptocurrency including Bitcoin at the moment is that it doesn’t have all the characters of real money. For example, it lacks the most basic character which is a store of value. Clearly, cryptocurrencies are fluctuating every day, and so if you store $100 worth of Bitcoin today tomorrow, it might be worth $0 or $1000.
Bitcoin (BTC) Price Today – BTC / USD
Ethereum (ETH) Price Today – BTC / USD
Is this the best time to get your foot into the cryptocurrency world?
Josh Fraser who discovered the open source platform called Origin made a positive prediction for cryptocurrency earlier in September. He seems to think that crypto prices will rise significantly during December of 2018. The reason he is so positive about cryptocurrencies is because of the growth of tech and blockchain.
He stated “We’re seeing a shift towards development in the blockchain and crypto space, which is extremely important because some of the key pain points in the space are usability and pricing. People who have written off crypto, as a result, will only be drawn back in when they see the real utility, versus speculation. This will help stabilize prices and is why building usable systems is critical.”
Another reason I think this might be the right time to get involved in crypto is because of the upcoming cryptocurrency exchange called Bakkt. The company who is developing the exchange has partnerships with massive firms such as Microsoft. We can expect the launch of Bakkt by later this year given that the US government approves it.
Cryptocurrency has a lot of potential. However, government regulations and a bunch of other factors combined make the whole point of Bitcoin useless. If you are in for the investment then the way I see it is as the stock market. Just like when we invest in stocks, we have to wait for a good amount of time before we can expect any return on our investment.
Similarly, if you are investing in cryptocurrency, you must have holding power so when the prices start dropping you shouldn’t sell instead wait and hold the cryptocurrency. There is no one can assure you that the price will go back to the point where your return on investments (ROI) is positive but selling it off immediately will most certainly result in a loss.