Rarely in the world of finance has any medium of exchange created such massive uproar as cryptocurrencies have.
In lieu of all the odds, there are many who are confident about the rise of cryptocurrencies in the near future. Celsius, for instance, is a cryptocurrency lending company that facilitates loans and payments. It took investors’ deposits, handed out a high yield, and now the accounts are frozen. It has prevented numerous investors’ access to their investment which amounts to billions of dollars. Is the current downturn going to continue?
What makes cryptocurrencies a favorite?
One can’t but get bewildered at the manner in which Bitcoin rose to its zenith and then to its nadir. From $0.09 in 2010 to $70,000 in 2020, cryptocurrency is perhaps the only virtual medium of exchange to have experienced such extreme valuations. Cryptocurrencies have caught the fancy of many but not without facing a backlash from the world’s financial wizard, Warren Buffet.
Hazards of crypto
To begin with, transactions via cryptocurrencies are done in digital currency, unlike the stock market where trading takes place of the shares or stocks of an organization. The stocks traded signify the approximate but factual value of the organization which is next to impossible in cryptocurrencies.
One of the key consideration factors is that the total volume of capital invested in stock markets far exceeds the volume invested in cryptocurrencies. Even if one argues about the volatility of the stock markets which impacts economies, one can’t deny the fact that high volatility can result in greater rewards. Cryptocurrencies are monopolized by a handful of heavyweight investors which makes the currencies highly susceptible.
The manner in which cryptocurrencies have been outperforming asset classes has been phenomenal but are there cheaper forms of financing? Yes, there are! Easymarkets is a trading platform that ensures security and safety.
Because cryptocurrencies are privately controlled, the chances of manipulation are enormous. Funds transacted to the wrong wallets have no solutions. Cheating, misuse, and manipulation rule the world of cryptocurrencies. Though this platform of exchange affirms data security and total anonymity, the risks are too high to ignore.
There have been massive untraceable thefts in the past which have baffled everyone around the world. The current scenario of inflation and high interest rates around the world have only increased the speculation surrounding cryptocurrencies.
The never-ending speculation about cryptocurrencies
Investments in the stock markets are known to reap rewards for shareholders which one can’t state confidently about cryptocurrencies. On the flip side, cryptocurrencies ensure seamless and secure transfer of funds and a flawless exchange of currencies.
There is a firm belief that Bitcoin and other cryptocurrencies, will replace cash slowly but surely, currently, they are not recognized as a legal medium of exchange because their management is vested in the powerful hands of a few individuals.
Data loss is another important figure when dealing with cryptocurrencies. if users of cryptocurrencies lose their wallets’ private keys, they suffer untold monetary losses as it’s impossible to break through. The wallet’s private key equals coins. No private key, no Crypto.
Rising interest rates have impacted stocks across the world and not just cryptocurrencies. However, generating business there are many people worldwide who believe the prevailing dip is only temporary.