Recently, it has been speculated that the Crypto market might not rise because of the recent long dips. However, the Crypto market is going to rise with time. You can cash in on your profits by investing in this period with the help of applications like the Quantumai App. If you are wondering why this run might be different for Cryptocurrency than the previous one, here are a few reasons.
The effects on employment due to the pandemic has made Cryptocurrency trading an important source of income for a lot of people, making its rise a blessing in disguise. This way Cryptocurrency has become a major part of businesses and the financial market in the lockdown and now that everything is reopening again, Cryptocurrency is also going to ride this wave of reopening. There will be greater consumer demand and this will help in the prices of Cryptocurrencies skyrocketing.
Cryptocurrencies are being adopted globally by countries as a legal tender. El Salvador became the first country to do so by adopting Bitcoin as an official legal tender. Similarly, it is rumored that Panama is also going to follow these steps including any other countries. Several countries are softening their stance towards Cryptocurrencies and looking at it as a safe asset that can help combat market volatility and inflation. For example, India ranks second on a Global Crypto Adoption Index as per Chainalysis 2021. This stance on Cryptocurrency will only become confident with time and aid in skyrocketing the Cryptocurrency market prices.
Some countries have also considered crackdowns and bans on Cryptocurrencies for example China, who recently banned any Cryptocurrency transactions and then all Cryptocurrency mining and Tesla which announced that it would stop the acceptance of Bitcoin. However, these negative comments might just convince more countries, institutions, and companies to propagate an aggressive acceptance of Cryptocurrencies. This is because more institutions are looking to adopt Cryptocurrency as a legal tender. This greater acceptance will make the Cryptocurrency prices skyrocket in the near future.
There is a hard limit on the number of Bitcoins that can be produced and this limit is set at million. So, out of this 21 million, 18.77 million Bitcoins have already been mined. This limited supply is leading to higher demand and therefore a higher price for the Cryptocurrency as per basic economics principles. This price will continue to rise over time because of the demand pressure for this asset. This will also increase the demand of Cryptocurrencies and make their prices rise to all time new highs.
These are a few reasons why the Cryptocurrency market will skyrocket and you can earn your profits by investing in it as long as you keep some things in mind. This may include limiting the amount you invest, getting used to extreme volatility in the price, and sticking to your chosen trading strategy. These reasons mark a greater run for Cryptocurrencies which can involve greater adoption by institutions and becoming a part of the mainstream financial world.