A year ago, bitcoin was trading at $10 thousand, as of August 19 of this year, the value of the asset is $44.5 thousand. Over the past 12 months, the cryptocurrency quotes have grown almost 4.5 times. Moreover, in April, the price of the coin set a historic high at around $65 thousand. Experts told if it is not too late to buy bitcoin, and named the reasons why it can continue to grow.
What is holding back the growth of crypto market
The cryptocurrency market is currently in the initial, early stage, believes the development director of cryptocurrency exchange EXMO Maria Stankevich. According to her, crypto economics as a whole is starting to develop now, the market still lacks regulation and infrastructure. Also, the growth of the industry is constrained by:
1. High energy costs: the high cost of electricity and computing power;
2. Absence of legislative base. Lack of a unified way of state regulation of the sphere, international norms and practices;
3. Lack of blockchain specialists of the necessary level;
4. Inertia of big players. Large companies, international banks continue to use SWIFT, VISA, American Express and the usual banking services.
What room for growth does the crypto market have
According to Vladimir Smetanin, CEO of Swiss financial company New cent, the market capitalization of crypto is now $2 trillion, gold is about $12-13 trillion, stock market is $80 trillion, and with all derivatives it is another $20-30 trillion. According to his calculations, the cryptocurrency market is now less than 2% of the entire capital market. At the same time, there are many prospects for digitalization.
“At least 5-6% of the crypto market should eventually take. And if this is the case, then here is already a twofold, threefold growth from the current volumes,” predicted the specialist.
Is it too late to buy cryptocurrency?
We can say that it’s not too late to buy bitcoins and altcoins, but on the condition that we are considering long-term investment (3-5 years), said CEO of online store of equipment for mining and computer parts Ivan Sharov. According to him, the cryptocurrency is now being bought by institutional investors and large funds, their investments give the market a growth stimulus. At the same time, the expert warned that it is not the best time for short-term investments because the cryptocurrency market is extremely volatile, although it has prospects for growth and renewal of historical highs.
Large investors and funds are expressing confidence in the crypto market, Stankevich added. Cryptocurrencies are backed by financial institutions, exchanges, exchanges and miners, she said. And the more actively the infrastructure develops, the faster the bitcoin rate will grow, the expert explained.
The CEO of New cent also agreed that it is not too late to buy bitcoin. He compared the cryptocurrency to shares of Apple, Amazon or Microsoft, which are actively growing in value. Smetanin concluded that there is great demand for cryptocurrencies right now, and the market is still at the beginning of its journey.
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