Make Your Cryptocurrency Work
Digital currency, it’s not exactly new but it is novel and if you begin an icebreaking conversation with the vast majority of people by referring to Bitcoin or Ethereum, to name a few, you might as well be talking Sanskrit. You will see their eyes glaze as they furtively glance around the room looking for the shelter of another, more appealing, subject with anyone but you.
However, those that have even a cursory knowledge understand that the swings in market price can be as volatile as bipolar depression. So, while it is important to remain cautious and not overextend yourself, investing in digital currency doesn’t have to be depressing and, in fact, can be rather lucrative if you maintain control and employ money management.
Bitcoin is poised for its halving within the week and Simon Peters, an analyst at eToro, explains: “During and after the first halving in 2012, the key investors were those already involved in the asset class. The Bitcoin investor base was almost exclusively made up of those in the know; blockchain scientists and data programmers as well as libertarians interested in the idea of a monetary system outside of the political influence and central bank control.”
Thus, there will be plenty of volatility in the coming weeks with Bitcoin and it is poised to increase in value which will spark a run on investors, driving the price up even further. The key is to get in on the action when it’s not generating publicity across news networks across the globe. However, be wise and understand that patience is a virtue as evidenced by the 2016 halving in which the price dropped by more than 30 percent only to see it rally a few months later.
BlockFi CEO, Zac Prince, believes the halving is coming at the right time due to the global effects of the coronavirus and people seeking alternate financial vehicles. Prince remarked, “Bitcoin has already bounced back from its losses stemming to pandemic market reaction. It’s increasingly being seen as a safe haven investment to diversify portfolios and as more people see the value, on top of ongoing peripheral retail pressure, we believe we will see the price rise steadily, and at times rapidly, over the next few years.”
Don Guo, CEO of Broctagon Fintech Group, recently spoke to Coindesk regarding the halving of Bitcoin and explained, “Halving will reduce the amount of Bitcoin’s rewarded to miners, thereby reducing the supply of coins entering the market. Not only does halving boost the price as a result of the added scarcity, but the additional media attention and the positive impact this has had on bitcoin prices historically will drive up demand.”
There is no crystal ball but doing your homework and picking out the right crypto for you is only accomplished through due diligence. Once you purchase the digital currency of your choice there are plenty of ways to use them and make them work. As a matter of fact, you can turn Bitcoin into cash using online sportsbooks if betting on sports is your bag. Most of the online books readily accept cryptocurrency and it has become the easiest and most liquid form of financial transaction in the sports betting industry.
As for Bitcoin, Antoni Trenchev, managing director of crypto-lender Nexo, is so bullish on its anticipated rise, that he believes it could soar to as high as $50,000 by December of 2020 from where it is as of this writing at approximately $9000. Trenchev is cognizant of the dissenting opinions concerning Bitcoin but the digital currency expert told Bloomberg News: “Critics can disparage Bitcoin as much as they like, but it’s by far the best performing asset of the past decade. We’re bullish about its future.”
Whether you hitch your financial wagon to a star or an anchor is on you but digital currencies like Bitcoin, Ethereum, and Ripple are the major players in the market. Of course, there are many others that can be explored but it is important to be cautious when walking a lightly traveled path in the world of cryptos because there are scams out there and sharks looking for guppies. Make sure to stay informed and be current with the breaking news and events that could impact your financial investment.
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