Cryptocurrency became an instant hit amongst investors in 2009. Bitcoin works on the blockchain philosophy and decentralized finance model. The token makes use of technology to undertake and complete user transactions. Every transaction is carried out on the internet with a huge volume of energy involved. All user transactions are stored on multiple user computers across the globe. Blockchain technology is an online ledger that stores complete records of user transactions. Also, the transactions are undertaken from one digital wallet to another. There is no involvement of regulatory agencies or central banks during such transactions. When a recipient wishes to liquidate their holdings then the user can convert their cryptos to fiat.
With the growing popularity of Bitcoin, many other crypto tokens entered the market. Today, there are more than 14k+ crypto tokens in the investment market. Some other popular tokens including Ethereum, Shiba, and Polka have taken a safe position. All these tokens combined with blockchain technology have made a huge difference. Also, along with cryptocurrencies, there are a few other crypto investment options. Today, there are stablecoins, NFTs, and metaverse making technology advances.
Cryptocurrencies have proved to be a lucrative investment model. The token has provided its investors with some reasonable profits in the past few years. Investors have received more than an 800% increase in their investment. Bitcoin entered the market at $1 per token. But, the prices of Bitcoin increased to $45k per token in 2020. Along with Bitcoin, other tokens also gained attention.
Various factors involve the price fluctuation of these tokens. In most situations, the price of cryptocurrencies is bound by market fluctuation. Also, cryptos have a heavy level of market hype to it.
Market performance of cryptos in 2022
The past few months have not been a favorable year for crypto investments. The prices of tokens swindled heavily in the investment market. In May 2022, Bitcoin prices declined for the first time to $45k per token. Fast forward by one more month, the price of tokens further reduced its prices. The token fell to an all-time low and market at $20k per token. Along with Bitcoin, the price fluctuation is felt on all other tokens as well. Ethereum, Polka, and Shiba fell in the price charts. Many investors and market experts are worried about the performance.
Crypto regulation and how the US government tackles it
Along with other countries, the US government has been significantly monitoring prices. Recently, the government set up a steering committee under the direct leadership of the president. The team works to monitor the prices of crypto investments. The committee will also study what steps can be undertaken to minimize losses. The development team will work to ensure that this investment model works as a haven for investors. The country aims to create a stable and safe crypto investment environment. The future generation can invest without market fears.
The combined value of cryptocurrencies has fallen by more than 70%. The Tether stablecoin has also lost its prices and trades at 99 cents per token.
Along with cryptocurrencies, crypto exchanges are facing the heat. Coinbase, the popular crypto company has announced its decision to lay off employees. Other than Bitcoin and Ethereum, the popular token Terra also lost its market presence. The token was completely wiped out from the market and washed out entire investments.
As per a survey, there are more than 16% of Americans purchased cryptocurrencies. If you are one amongst this 16%, then you are on the verge of breaking out. The current market condition is full of fear, anxiety, and doubts. The crash and market prices of other tokens are not helping either.
What is the future of cryptocurrency?
We can always speculate about the prices of cryptocurrencies and their pricing strategy. Despite these predictions, the prices may not have the backing of any base predictions. Hence, it is important to understand that cryptocurrency investments are speculative. Any amount of expert advice may not help crypto speculations and investments currently.
Ensure that your crypto investment is only on what you are prepared to lose. Diversify your investments to ensure that you do not lose big.
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