If you are a cryptocurrency enthusiast, things could not possibly be going better for you right now. Over the last few months, various cryptocurrencies have seen an incredible rise in their value and many are nearing their all-time high. Cryptocurrencies including not just Bitcoin but various others have flourished during the COVID-19 period. Many experts believe that we may be on the verge of a drastic rise in cryptocurrency value very shortly.
Which cryptocurrencies have been performing well over the last few months?
Over the last few months, many cryptocurrencies have gained a lot in value. In addition to the popular cryptocurrency Bitcoin, other major cryptocurrencies like Etherium and Ripple have also done very well for themselves. The unanimous rise of several cryptocurrencies has prompted many experts to analyze the situation at hand. For more information visit digital yuan.
Throughout the recent financial crisis, cryptocurrencies emerged as a viable option for many to invest in to protect themselves fiscally. As most people were seated at home, they had more time to look into and invest in cryptocurrencies as they picked their interest. As a result, the crypto market gained a massive 100 billion in value and many cryptocurrencies are now valued at extravagant prices. We also see an increase in crypto trading software like “this bitcoin system review” in those years.
During times of distress when the economy suffers, gold usually comes out as the haven asset to have. This asset has proven itself to be the best asset to hold on to during uncertain times and yet, to everyone’s surprise, Bitcoin recently outperformed gold in terms of value growth. Over the last few months, cryptocurrencies like Ripple have significantly risen to about twice their initial value while other bigger currencies like Etherium and Bitcoin cash have seen a massive 300% rise. This has led many crypto analysts to deem cryptocurrencies as digital gold, many believe that these prices could very well keep rising and hit new highs before 2021 even begins.
Why can’t people wait to invest in cryptocurrencies?
In terms of relative value, Bitcoin has seen an unprecedented increase, taking its current value to the north of 18,000 USD. This is a very big deal as Bitcoin’s highest value was recorded in the vicinity of 20,000 USD three years ago and this threshold could soon be broken. It is almost impossible to believe that one could purchase a Bitcoin for themselves at 5,000 USD not too long ago. Those who invested their money in Bitcoin before the halving event, are reaping their rewards right now.
The recent halving event saw the number of available to mine Bitcoins decrease by 50%. There have only been a few halving events in the history of Bitcoin and this one created quite a splash in the market as the availability of Bitcoin became scarcer while the demand kept increasing. The halving event has affected the market as there are only a limited number of Bitcoins available to mine in total (About 21 Million).
Investing in cryptocurrency has given people a new way to tackle inflation and this pattern is showing no signs of slowing down. Ever since PayPal announced that it would make cryptocurrency available to all its users worldwide a new wave of interest has followed in the world of cryptocurrency. More people than ever are now trusting of Bitcoin and other cryptocurrencies and consequently, want to invest in it. People all over the world are now looking to invest in Bitcoin and other cryptocurrencies due to the many advantages available to them right now. The recent rise in inflation has left people trying to find a way to fight it. Cryptocurrencies like Bitcoin help most people to tackle this rise while also receiving a high number of APR yields as compared to traditional finance.
Bitcoin’s increasing value has also been a major reason for its appearance in the spotlight. Very recently, Bitcoin beat big mammoths like PayPal and even Mastercard to be termed as the 19th most valuable asset to have in terms of value. This recent meteoric rise in the value of cryptocurrencies has sparked the interest of many people around the world. Various investors now want in on this magical currency that has been competing with the biggest names in the market like Investment bank JPMorgan Chase. Once you couple all of this information with the fact that some analysts have even predicted quadruple times value increases and you begin to understand just why the world has suddenly gotten behind cryptocurrency.
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