Cryptocurrencies are famous as ever, and yet, you don’t see everyone you know investing in this new financial asset and barely know one use them to make their purchases. The fact is you don’t always hear positive things about Bitcoin and its friends, since cryptocurrencies markets are actually tense. So it’s a bit of a paradox, since they’re popular, but don’t attract a lot of people.
Why are cryptocurrencies so famous?
Bitcoin is the first cryptographic currency the world has ever known, and every other that followed are mostly copycats. Not every new cryptocurrency succeeded to be as famous as Bitcoin, and only a handful of 20 crypto-assets is attracting the interest of the majority of the traders and investors and people who are using it for their purchase. During 2017, Bitcoin has been the rock star of the crypto-world , as its value went from less than $1000 at the beginning of the year to reach nearly $20 000 in November 2017.
Unfortunately, like every rock star, people started to slowly lose interest for this currency, and it’s been a while now that the price of this currency is on a negative trend.
Bears are everywhere hiding themselves behind any negative news.
Media played a massive role in the cryptocurrencies craze, calling it “the money of future”, and telling stories about how some people bought Bitcoins at the right time and ended up being millionaires or even billionaires.
In people’s mind, acquiring Bitcoin the soonest possible would help to make them rich in a short period of time, and it indeed worked, from January to later in the year, the Bitcoin value easily reached first 10 times its value at the start of the year, then even 20 times. Other cryptocurrencies became popular mostly because they were expected to grow as much and as fast as Bitcoin did.
However these media fever for the cryptocurrency seems over when the market is dipping.
Trading cryptocurrencies like Bitcoin is like flipping a coin
The cryptocurrencies market in general is actually very volatile, it means that the prices can go unpredictably take one direction or another, and it makes it possible to make profit on short term trading. But this kind of trading is rather aggressive, and very stressful, and it requires a lot of discipline and concentration, among other things. Not everyone has these qualities, and thus isn’t built in order to survive doing this type of trading.
The peak of interest for cryptocurrencies probably came from exchanges which allowed people to start trading cryptocurrencies even if they can afford only $20 is such operation. It has resulted in more than 250 000 subscriptions per day on some exchanges, and it’s more than possible that these people would leave the exchange once they get disappointed, since they don’t necessarily have the required background to actually make money on them.
When you can’t predict how the market is going to react, making or losing money becomes a matter of luck, and it’s like flipping a coin: you don’t control the outcome. The more aggressive a market is, the harder it is to predict where the trend will go, and how long such trend will last. That’s why Paypal, strive and many e-traders and shops are staying away from Bitcoin and its friends.
Indeed let’s imagine a store accepting bitcoin payment when its worth 20 000$, and 30 days later they have to pay their employees with bitcoin currency that has lost 50% of its value.
However the offer of new cryptocurrencies is just huge and booming.
Some are extremely innovative and volatile such as XRP (Ripple), others are backed up by gold, oil and other raw materials that can help providing this need of stability.
As the market of cryptocurrency is still booming, and the numbers of ICO continue to grow, soon everyone will find the answer to their needs and thus everyone should use it to purchase his favorite ice cream.cr