Strong Highlights: –
- Over a time period that had definitely been marred by the global ever catastrophic effect that had shaken the entire human race known as COVID-19 and its almost a year since its commencement that completely shifted the global scenario that we are aware about.
- However, at the same time, the COVID-19 Catastrophe had also offered few of the great prospects alongside it, and the biggest among it is the outstanding potential of latest emerging markets, like that amongst the Cryptocurrencies evolution, E-commerce and new age digitalized contactless banking and payments.
- Since their inauguration in 2009, digital exchanges have paved a long way. Today they are being embraced as a payment process by the mainstream finance industry supporting its incredible potential capacity to stretch out the financial world off its feet.
Overviewing back at 2020 and the initial half of 2021, we had already witnessed an extraordinary flood in the crypto market the Bitcoin upsurged to 400 percent, XRP and ETH as well as other crypto tokens also displaying the three-digit intensifications and the slighter cap cryptos were no longer small anymore.
Then approached a procession of events leading the ripples across the crypto market, such as Tesla swinging vehicle procurements utilizing the cryptocurrency citing ecological concerns over the mining movement and China and the US defining regulation and tax agreement on trading cryptocurrencies, triggering the major cryptocurrency in the world – Bitcoin, to take a hit.
These advancements also obstructed Ethereum too, with the digital coin trading 15 percent lower at $3,001.70. Roughly $279.65 billion was erased off from the entire worth of the crypto market in a day.
You might now be wandering and querying yourself how we even got here, and would this be a decent time to invest in cryptos? Now, we cannot make that verdict for you, but we can unquestionably equip you with facts and data that may possibly aid in your judgement whether to leap into the crypto boat or not.
Crypto embracing stays the helm spinning accordingly
Another justification for Bitcoin’s worth overall still holding robust is its embracing as a payment method. More banks and enterprises are beginning to recognize cryptocurrencies as a form of payment.
In May, one of the global banking giants, Goldman Sachs authoritatively relaunched its crypto desk after it fruitfully traded two types of bitcoin-linked by-products as a part of the organization’s global currencies and evolving markets division. Big-league establishments like that of the Microsoft’s, Starbucks, MasterCard, Home Depot and more, incorporating crypto as a form of payment had in fact assisted boost the attractiveness of digital coins, transforming them into mainstream merchandizes.
Back when Paypal revealed the unveiling of cryptocurrency procuring as well as trading features on its platform, we observed an escalation in Bitcoin’s worth almost instantaneously. As of today, PayPal has approximately 350 million clients who can easily procure, store, and utilize Bitcoin.
With the escalating popularity, many similar applications were unveiled in the preceding months. Popular rivals to PayPal and Venmo, Square (SQ) and CashApp are now recognizing cryptos as well.
Recently, eBay Inc said it was pondering admitting cryptocurrency as a valid form of payment in the future, and although Amazon does not precisely approve Bitcoin as a valid payment method, you can still acquire Amazon vouchers and gift cards through it.
Inflation is the actual cause that had triggered all anxieties
To shielding their investments against mounting inflation triggered via the global uncertainty (i.e. the pandemic) many traders begun to operate away from the US dollar. They have taken shelter in assets that traditionally have held significance or have even welcomed. These safe-haven assets include valuable metals or the Japanese Yen, and more recently, Bitcoin and cryptos. Even though digital coins are unpredictable by definition, the current financial environments powered the investors to believe on crypto tokens.
The Elon Musk Incidence and the consequence
We salvaged the greatest till the very end. If recent happenings are any suggestion, then Bitcoin and Elon Musk’s twitters go hand-in-hand. For those of you residing under a rock, here’s a swift recap. It commenced in initial February, when Elon Musk was determined to procure $1.5 billion worth of Bitcoin.
BTC prices skyrocketed to all-time highs in the wake of the Tesla boss’ statement. Just less than two weeks later, Elon Musk was ascertained to have a bit more fun, communicating his “concern” that Bitcoin charges looked “a bit high.” The then outcome? Cryptos gone down like a pack of cards falling out.
Then another twist in tale of the unexpected event that swapped Bitcoin’s skyward trajectory to downhill –Tesla delayed vehicle acquisitions utilizing the cryptocurrency. The firm CEO Elon Musk made the declaration on May 12, quoting environmental anxieties over the “mining” process. That day, the cryptocurrency marketplace dwindled out a lot more than $300 billion of its marketplace cap.
As of the present condition
After a combination of the roller-coaster work week of trading, reporting for the regulation and tax compliance data from China and the US, Bitcoin tumbled roughly 16 percent to $31,772.43. However, the problem and the uncertainty still remain: What will Musk speak in forthcoming time frame and what will happen then to the Bitcoin and other Cryptos? Better believe the boys from Tears for Fears: We live in a really Fanatic World indeed.
The million-dollar query
With the current turn of events, would you roll the dice and contemplate investing in crypto’s.
Now we’re not advising you to trade Bitcoin now until it’s too late or whether the values will resume this spiral or move up. Nobody realizes what’s in the foray for the Crypto world. What we do realize are hard elements rationalized in the article and that investment decisions vary on how you perceive things, your trading tactics and risk appetite. BTC and other cryptos linger largely decentralized, bypassing conventional rates indicted by banks and financial institutions.
With all the measures, let us not forget about what transpired post the BTC collapse in early 2018 – the market recouped, exceeding everyone’s expectations. Despite it all, Bitcoin is up 268 percent in the preceding year.
At the same time, Ether, the second-largest crypto globally, approached up more than 840 percent. Until we observe a global regulation in place, for an illustration, the regulations administering cryptocurrencies in China, we view absolutely no reason why history cannot replicate itself. On the other hand, with its precipitous evolution in popularity, there are other opportunities individuals have begun to consider, such as trading cryptos via leveraged commodities.