May 20th, 2019
When Bitcoin first emerged, no one really expected it to go BOOM! Well, almost no one …
There were a few savvy investors that were willing to take a risk on Bitcoin (i.e. the Winklevoss Brothers).
But it’s 2019 and Bitcoin isn’t the only cryptocurrency around anymore. So, what are the newest cryptocurrency trends and how will they affect you?
That’s what we want to discuss.
While it isn’t 2009 anymore, cryptocurrencies still have a “stigma” that can’t be shaken off it seems. Traditional investors like Warren Buffett and larger corporations call it nothing more than “delusional” and “worthless”.
And yet, here we are in 2019 and the current price of one Bitcoin is worth more than $5,000! That’s not worthless … not by a long shot.
So, let’s talk about the cryptocurrency trends that look good for 2019. Ready?
This will be BIG!
Traditional investors and larger investors have shied away from cryptocurrency for fears of it being “worthless” and similar in design to Ponzi schemes. But if cryptocurrencies are accepted as an ETF, then it could open the floodgates for outside investors looking for a “safer” investment.
2018 was the year that defined cryptocurrencies (good and bad). But one major aspect was ETF acceptance by the SEC. While still in discussion, it looks plausible that more cryptocurrencies could be accepted as an ETF and therefore help reduce overall volatility in the cryptomarkets.
Looking at what we just discussed, you can see how this will increase interest in cryptocurrencies.
Instead of having reputable traders such as Warren Buffett talking about how cryptocurrencies are “worthless” and “delusional”, they’ll be touting them as safe investments with huge upside potential.
Not only that, but larger companies will start funneling some of their investment funds into cryptocurrencies, helping to provide a stronger, more stable floor (support for chartists).
As interest for cryptocurrencies continues to grow, along with a wider adoption from major platforms (i.e. Facebook, Whatsapp), there’s a good chance that your portfolio might include some digital currencies that once were considered “taboo”.
Unfortunately, cryptocurrencies are still “new” and there aren’t many who truly understand how they function, what they are used for, and some even believe that are worthless. Which is why there will be a BIG shift in educating the common consumer/investor about cryptocurrencies.
There are still some who believe that cryptocurrencies are “illegal” and “criminal” as they are used to buy from “less than reputable” sellers and/or used for dark web transactions. But this is only one portion of what they are used for.
Can’t money be used to buy drugs and weapons … why isn’t money “illegal” and/or “criminal” – because it’s backed by banks and governments and they control the accepted value.
Which is why we believe that 2019 is the year that cryptocurrencies really start getting the positive exposure they need.
BTC and other cryptocoins cannot be ignored any longer. Too many companies are starting to use them for financial transactions. Which is why the public will start to understand cryptocurrencies better.
There are a few factors that affect market volatility:
These three factors will heavily impact the volatility of a market and/or cryptocurrency. As you’ve seen, 2018 was hard on Bitcoin.
However, with increased interest from other investors, along with an increased understanding of cryptocurrencies, the volatility that has plagued cryptocurrencies looks to be waning.
There is an understanding that Bitcoin will have a total of 21 million coins. Comparatively, Apply has approximately 860 million shares and trades at over $200.00 per share. Due to the limited resources of Bitcoin and other cryptocoins, the price can fluctuate wildly with one heavy purchase and/or sell.
As you can see, it’s not an apples-to-apples comparison. As of this writing, one Bitcoin (BTC) is worth $5,294.01 versus Apple at $212.00.
Keeping up with the current bitcoin price is an absolute must. Just as analysts use charts for common stocks, so do bitcoin enthusiasts and investors. While there is an inherent volatility in the cryptomarkets right now, it looks like the worst (2018) is behind for BTC and other cryptocurrencies.
In 2017, there were only 875 ICOs. In 2018, there were 1258 ICOs (an increase of 383 new ICOs). At that rate, 2019 should end with around 1675 total ICOs!
Welcome to ICO Wild West!
Thankfully, it’s not the wild west and there are some guidelines for new ICOs. But the cryptomarkets are expanding at an unheard of rate as new startups are looking for ways to jump into the cryptocoin craze.
ICOs are regarded as an actual asset, unlike coins that are considered risky and/or worthless (except to the owners). This added layer of “security” helps to draw in larger investors and other governmental figures that help to stabilize the market (see “limited volatility”).
As more ICOs emerge, there will be an increased interest (see “increased interest”) and a need for more education (see “increased education”) regarding cryptocurrencies. A good website for this is Chainbits. Chainbits helps to explain cryptocurrencies and blockchain while keeping you up-to-date with the latest crypto news too.
Would it surprise you if Warren Buffett actually owned a LOT of BTC and other cryptocurrency shares? While we don’t have proof of this, but there is an old mantra that many investors use … “buy low, sell high”. Is it possible that he’s bought LOW like the Winklevoss Brothers and is just waiting to sell HIGH?
While there’s a small chance that the trends don’t come to fruition, there’s a much greater chance that 2019 will be a pivotal year for cryptocurrencies and investors. If you’ve been on the fence about cryptocurrencies, now would be a good time to start really paying attention.
Are you prepared for what’s to come? Did you already see the writing on the wall?
Did we miss something? Let us know!
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