Benefits Of Cryptocurrency
January 5, 2022Bitcoin Myths You Need To Stop Believing Now
January 5, 2022Bitcoin in particular – and the overall cryptocurrency market – has undergone several periods of immense popularity and media frenzy in all the years since its existence. Many critics of cryptocurrency suggest that this digital currency is still nothing more than a speculative bubble to pop any moment. However, time and again, they have been proven wrong.
Even though it isn’t a bubble, entrepreneurs need to have their ear to the ground to figure out the cryptocurrency market. When done right, diversifying business or personal investments is not too difficult. In fact, it is getting to be a safe place to start a business.
On that note, let’s take a brief look at why cryptocurrencies are here to stay this time and in future.
Understanding the resurgence of cryptocurrency
Bitcoin has been capturing the interest of the investors since last fall, though the type of investors has been changed this time. The Bitcoin rush in 2017-18 was driven by the retail investors. However, this time, the investments are coming in from private companies, hedge funds, endowments, and institutional investors.
Moreover, the platforms like 1k daily profit have entered the market to make crypto trend analysis a lot easier for the interested investors. Such reliable apps have a major role to play in drawing more investors to the arena.
On the other hand, there are conventional financial institutions that had derided or ignored Bitcoin back in 2017, though they are taking it a lot more seriously now. Top financial organizations are now ready to offer Bitcoin to clients in the wealth management section. Some of them are also about to start their own crypto ETF.
In the world of cryptocurrency, the rising tide can lift all the ships. As Bitcoin rallies because of wider institutional adoption, all the other altcoins follow suit. Thus, the trend of institutional support starts from Bitcoin before reaching Ripple, Ethereum, and Litecoin.
Liquidity differences and bullish signals
Recent reports have suggested that the demand for Bitcoins is coming mainly from the illiquid accounts. At present, over seventy percent of the 14.8 million Bitcoins mined is kept in the illiquid wallets. Illiquid wallets are those that send even less than a quarter of the Bitcoin they receive. It comprises of a larger relative share right now in the total Bitcoin circulation than in 2017.
Now, this indicates a major Bullish sign for Bitcoin as it shows that the cryptocurrency is held by the highly resilient long-term value investors instead of traders. This is good news because value investors are more capable of weathering the storm rather than selling off the assets under the bout of negative price movements.
Endnote
To be perfectly honest, there was a time in the past when people had ample reasons to think Bitcoin as nothing more than a bubble. But that time has passed. The investors are in for a long haul now as they are more into holding rather than solely trading. So, all in all, now would be a good time to bank in on the cryptocurrencies.
