The current upward trend, especially with BTC, is a reflection of the increase in the transactions performed in the ecosystem
The crypto ecosystem has a lasting appeal
In the past weeks, investors and fans of the crypto-ecosystem have had a pleasant surprise thanks to the price rally of Bitcoin and other cryptocurrencies, something that is pretty encouraging since the most recent winter for these digital assets.
Despite that, these assets are highly fluctuating, investments in Bitcoin and cryptocurrencies in general and everything related to that market continues to be an excellent business for many.
A crypto-asset behaves like any other investment
If there’s something that some experts agree with, it’s that there’s no big difference between investing in digital assets and other types of assets because if we analyze the behavior of investments in assets like gold, oil, coffee, or oranges, the benefits for investors are also tied to the fluctuation of their respective markets.
What actually represents a transcendental difference is the trust that these assets represent for traditional markets, which is quite a different subject as far crypto-assets are concerned because, despite that more than a decade has passed since the arrival of Bitcoin, it isn’t gaining the necessary mainstream commercializationto be considered a profitable business yet, and most importantly, trustworthy.
However, this situation seems to be irrelevant to cryptocurrency fans, because the current upward trend of the cryptocurrencies, especially BTC, reflects the increase in transactions carried out in the ecosystem, this is what really makes the value of an assetincrease, be it digital or not.
The increase of the crypto-trustworthiness
During the month of June, Bitcoin’s quotation reached USD 14,000, a figure wasn’t registered since 2017, and although some financial analysts believe that this explosive increase of BTC was promptly triggered by Facebook’s announcement of their cryptocurrencylaunch, Libra, by the year 2020, there’s no doubt that this has been the push that the market needed for the long-awaited takeoff.
Cryptocurrencies and any investment related to this ecosystem are so far recognized and accepted by a broad sector of the economy, and are responsible for spreading the word about one of the technologies with the highest potential of recent times, Blockchain, which gives them a greater sense of trustworthiness.
This confidence seems to increase as technology giants like Facebook develop crypto with widespread projection since this means that the technology is secure, reliable, and can achieve universal implementation.
Appealing despite their fluctuation
As we said before, the greater opponent of a crypto-asset is the fluctuation of its value, which will be accepted in time as a natural feature of this technology and will lead many investors to study the market behavior more deeply and the circumstances that most influence it.
Certainly, something similar happens with investments in other assets or the management of a stock exchange, strategies will be developed to betterdeterminethe best moment to invest in a cryptocurrency, in order to increase profitand reduce losses.
What doesn’t leave room for discussion is the fact that both Bitcoin and any other crypto-elements are still appealing enough to be consideredexcellent investment opportunities inshort, medium, and long term, depending on the season they are.
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