Cryptocurrencies are referred to as the currency of the future for a reason, the digital form allows you to make anonymous financial transactions, where the security is a fully automated system that protects both money and user privacy.
The current upward trend makes buying cryptocurrencies seem like a good option, but is it really worth investing in cryptocurrencies?
The dynamics of growth in the cryptocurrency market
It is estimated that over the past year, the Bitcoin price has increased by over 300%, which in times of crisis gave it the title of an investment hit. The value of virtual coins was significantly affected by rising inflation – large companies started buying cryptocurrencies when there were voices that the US authorities were planning to devalue the dollar.
The dynamics of price growth only began to take shape in the last quarter of last year, and the 40% increase in Bitcoin’s value stunned investors. There were voices that the cryptocurrency exchange boom cannot last forever and you need to prepare for the collapse. In fact, with the beginning of 2021, the prices of one of the most popular cryptocurrencies dropped significantly, and this drop of a dozen or so percent, considered the beginning of a bear market, led to a sharp sell-off. More informations You can find at bitcoin-exchange.uk
Is it worth investing in cryptocurrencies now?
The cryptocurrency boom is a component of many factors: according to some, the increase in the value of prices is due to the fact that cryptocurrencies are the best hedge against inflation as the government and the bank develop stimulus packages caused by the coronavirus pandemic. It is also not without significance that large financial institutions have declared to buy cryptocurrencies and use them as a way to operate assets.
The potential of cryptocurrency is appreciated by users and investors – there are plans to launch the cryptocurrency payment option for online purchases. The interest in this market clearly shows that the virtual currency is a future-proof solution worth investing in. Projects that particularly attract attention are, of course, Bitcoin (BTC) with approx. 65% of market capitalization, Ethereum (ETH), whose growth has even reached 60%, and the growing adoption rates herald the further development of this coin, or LTE (Litecoin), which despite The decline in value compared to 2017 has recently recorded a 12% increase, and the forecasts forecast a further upward trend.
