Bloomberg, a famous economy channel, prepared a large file about cryptocurrencies with the data that has been gathered in the period of 16 months and shared it with its readers. The report responds to questions such as how price increases in cryptocurrencies are in parallel with swap transactions and other products. Bloomberg’s report concludes that the positive performance of cryptocurrencies so far does not guarantee better results in the future.
It is also stated that the cryptocurrencies, especially Bitcoin, show serious price changes. These sudden price cuts demonstrate that Bitcoin and other similar currencies are not suitable for salaries or other forms of payments. The article believes that there is only one non-cryptocurrency investment that shows similar ups and downs in the 16 months period and that is within a company in South Africa which is dealing with an accounting scandal.
The article also drew attention to Bitcoin’s trading volume, dominant character and market share being larger than the other cryptocurrencies that currently exist. It was emphasized that in traditional stock markets, even though the distribution is quite equal, there is no product as strong as Bitcoin that influences the sector.
The article also includes a quote by LDJ Capital founder David Drake, who notes investing in the smaller cryptocurrencies can be similar to the early investments of venture capital.
Bloomberg officials state that cryptocurrencies have been continuously instable within dollar or other forms of products. The officials indicate that this is not a good sign. They describe Bitcoin’s relationship with other product classes as weak and underline the fact there is no stability in the market with the exception of Tether.
In the last section of the article, ICOs are discussed. The answer to the question of whether it is possible to earn high profits in the short term with the ICOs is focused on. Bloomberg authorities emphasize the stern behavior that many countries have adapted in the face of these activities. It is stated that governments have been putting pressure on the fraudster and fake ICOs to protect their citizens, which helps the market to be a little more normal-like. However, Bloomberg once again invites investors to be cautious about ICOs.
