Experts talk about the transformation of cryptocurrency


Designated factors that reflect the maturity of the digital asset market


What happens to bitcoin: Experts talk about the conversion of cryptocurrencies. Photo:

Analysts have determined that bitcoin is slowly becoming a speculative asset and turning into a digital version of gold. He cited several factors for the development of the digital money industry.

The number one factor is a decrease in volatility. Experts said the exchange rate fluctuations of the main digital currency on the annual segment are weakening, while the same indicator is rising in the stock market.

From the beginning of the year, the price of bitcoin fell by 5% to 22% in the S&P 500 index. This indicates the maturity of BTC as a new type of asset, and its recognition by investors as a gold analog.

The second factor analysts believe is the rise in trading futures for bitcoin. It helps reduce the speculative component, experts emphasize. The recovery of the first cryptocurrency after a two-year decline is also noted, indicating its gradual recognition.

Until now, bitcoin is still highly dependent on the stock market. However, this correlation is likely to decline in the future. In addition, experts believe that BTC is becoming a low-risk asset, as its price has dropped significantly since the 45% drop in March.

Analysts conclude, “Despite the stock market shocks, the rise in interest in futures and a decrease in volatility indicate that bitcoin is changing from a speculative crypto asset to a digital version of gold.”

Summary PAYSPACE magazine

Remember that for almost ten years in the market, the value of bitcoin has risen significantly, pushing cryptocurrency to a whole new level. Those who bought at least one bitcoin for $ 600 in 2013 got a chance to sell it in December 2017 for $ 20 thousand.

The success of bitcoin and other virtual currencies has changed the industry – according to a study by Visual Objects, more than one cryptocurrency owner (38%) used their crypto assets to buy food, while the other 34% used digital. Purchased clothes using money. Many people buy gold for bitcoin (21%), and invest 29% of the shares in cryptocurrency, helping it build a serious investment portfolio.

Read: Bitcoin Cashback: Folded Crypto is creating a new service for startup customers.

By content: Bloomberg


Source link

Leave a Reply