There is no doubt that cryptocurrencies – especially Bitcoin (BTC), which is often used as a barometer for the health of the entire sector – have returned. At the time of this writing, Bitcoin is just over $ 9,000, very close to the $ 10,000 investors were expecting sometime this year, and we’re only in the third quarter.
Although there are signs that crypto winter is over, many experts remain cautious.
The cryptocurrency was a notoriously unstable investment that was initially sold for less than a penny and then ranged between $ 400 and $ 1,242 between 2013 and 2016. 2017 lCryptocurrency investors were overjoyed (and some probably quite smug) when they saw the currency hit an incredible $ 4,400, and then the year ended up breaking the incredible $ 20,000 after it dropped to USD 2,000 the same September.
What followed after this brilliant season in the cryptocurrency industry was, of course, what we call crypto winter: the drastic loss in value after several high-profile Ponzi schemes, successful hacks, cryptocurrency attempts and reporting on general negative means.
In this article, We will discuss the question of whether crypto winter is over, those who have already invested have reason to hope and those who have not boarded the train just before the price hike. We will also focus on blockchain technology as it exists both inside and outside the cryptocurrency industry and why the widespread adoption of this new technology is an indicator of the future success of cryptocurrency.
Is the crypto winter over?
For many experts, the answer seems to be “yes”. From cryptocurrency enthusiasts to Forbes, the current view of many is that Bitcoin is ready to make big profits over the next 10 years. Although the whims of the cryptocurrency industry are as mysterious as Satoshi Nakamoto himself, we seem to be heading for a period of stability in which the basics of cryptocurrencies are better understood and more trustworthy.
Only 4% of Americans surveyed name cryptocurrency as their preferred long-term investment, but this will most likely change in the near future as Bitcoin only has room for growth.
Many compare the future of Bitcoin to that of the Internet, claiming that the product has the same scalability, availability, and ease of use problems that the Internet has had since 1995.
In the same way, Market experts point out that only 11% of Americans own Bitcoin, but these numbers are comparable to other important technological developments in their early stages, such as smartphones.
Many point out that the disruption caused by the outbreak of the corona virus in traditional banking and investment institutions can be a motive for investing in the digital currency to protect itself against inflation and the questionable resistance of fiat currencies.
Many experts also suggest that cryptocurrency transactions are not completely secure and anonymous without the use of a virtual private network or VPN. They are also irreversible. Once a coin disappears from your account, it can easily disappear without a trace. Hackers took advantage of this by entering exchanges and stealing small amounts from every user.
So Bitcoin will likely take some time to gain public confidence, but for those who are willing to take risks, it could be the most profitable investment of 2020, especially for those who are willing to wait 10 years, to witness the real ones. Extent of its growth.
Blockchain – the real winner behind the cryptocurrency
While there is still much to be seen about the future of cryptocurrencies, no one can deny that the idea of creating a purely digital currency is as old as science fiction. From transportation to food, medicine to video games, a multitude of industries are still looking for blockchain technology for logistics and transaction solutions. In seven years Blockchain technology is estimated to track $ 300 billion of food, saving over $ 100 billion annually.
In 2018, JPMorgan surprised the traditional financial world with the public statement that blockchain technology is the way of the future for cross-border payments. A year later, IBM, Citibank and Barclays announced the development of their own blockchain-based platforms, and Dubai announced that it has a new goal of becoming blockchain-based by 2020.
Although it is still a relatively new technology, there is no doubt that blockchain and the crypto technology used will quickly dominate the landscape in the coming years. Countless first-class engineers, product developers and designers develop real blockchain solutions to perfect this technology for widespread use in various industries.
We may have to wait until blockchain technology is fully understood, used, and valued by the masses to give the cryptocurrency the much-needed push.
Although coins and investments like cryptocurrencies can go through wild ups and downs, there is nothing more stable than an already proven and reliable technology solution like blockchain.
Ready for spring cleaning?
Many unanswered questions and issues that still concern cautious investors, but these hurdles are similar to other successful and innovative technologies such as the Internet and Apple smartphones. In addition, much of the negative press about the problems associated with Bitcoin is due to fraud that could have been easily avoided with adequate financial literacy and cybersecurity.
Also, Let’s not forget that traditional banking institutions have a vested interest in making cryptocurrencies seem like a questionable investment. Of course, big banks and traditional investment platforms have considerable power to fund research and news that influence opinions every day. This could be a reflection of their fear of competition rather than a legitimate representation of the value of the cryptocurrency industry.
If you prefer safe and reliable investments with moderate to low yields in the short term, Bitcoin is probably not the right investment for you.
However, if you are looking to potentially make money to invest in a growing new industry and are not afraid of the “spring cleaning” that is currently required to improve the future security and usability of the cryptocurrency, this may be the time to do it. Buy bitcoin.
Because where there is no risk, there is no reward, and it may be advisable not to wait for everyone to sing Bitcoin’s praises for years to make the decision to invest.
This article does not contain any investment recommendations or recommendations. Every step of investment and trading involves risks. You have to do your own research when making a decision.
The views, thoughts and opinions expressed here are only those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.