It’s been a tough year for cryptocurrencies. After a record-setting 2017, the market has seen a sharp decline in 2018. As of September 2018, the total market capitalization of all digital assets was $209 billion, down from a high of $813 billion in January. This begs the question: what is causing this decline and will the crypto markets ever recover? In this blog post, we will explore the current state of the cryptocurrency market and try to answer these questions. We will also provide some insights into where the market may be heading in the future. So if you’re wondering what the future holds for digital assets, read on!
What Makes Crypto Much Different from Other Investments
Crypto is a digital or virtual currency that uses cryptography for security. It is not subject to any central authority, making it decentralized.
Cryptocurrencies are often compared to traditional investments, such as stocks and bonds. However, there are several key differences that make crypto much different from other investments.
For one, cryptocurrencies are digital assets that exist only on the internet. They are not physical objects that can be bought or sold in the traditional sense. Instead, people can only buy and sell them online through exchanges.
Another key difference is that cryptocurrencies are decentralized. There is no central authority that controls or manage them. Instead, they are managed by a network of computers all around the world. This decentralization makes them more volatile than other investments since prices can fluctuate rapidly due to changes in supply and demand.
Lastly, crypto investments are also generally considered to be riskier than other types of investments since they are newer and less regulated. However, this also means that they have the potential for higher returns if the market grows as expected.
Will Crypto Recover in 2022-23?
In the wake of the COVID-19 pandemic, the global economy has been sent into a tailspin. Investors have been fleeing to safe-haven assets such as gold and government bonds, sending the prices of these assets skyrocketing. However, one asset that has not fared so well is cryptocurrency.
The crypto market has been in a slump for over two years now, and many investors are wondering if it will ever recover. The short answer is that it is impossible to predict the future of the crypto market with any certainty. However, there are some factors that suggest that the market could start to recover in 2022 or 2023.
First, it is important to note that the crypto market is still relatively new and immature compared to other asset classes. This means that it is more susceptible to volatile swings. However, as the market matures, these swings should become less frequent and more predictable.
Second, the current bear market has been driven largely by negative news stories and regulatory uncertainty. These factors have made many institutional investors hesitant to get involved in the space. However, as time goes on and these concerns dissipate, we could see more institutions enter the space and drive up demand for cryptocurrencies.
Finally, we are seeing an increasing number of companies and governments begin to experiment with blockchain technology. This suggests that there is growing interest in the underlying technology behind cryptocurrencies even if there is currently little demand for buying and selling cryptocurrencies themselves.
How can Crypto Show a Positive Recovery Owing to This Current Situation?
The current situation is no different. The prices of Bitcoin and other cryptocurrencies have been volatile lately. But, there are some signs that the market is showing a positive recovery.
Here are some ways in which crypto can show a positive recovery owing to this current situation:
1) Increased institutional investment: One of the reasons why the crypto market is seeing a positive recovery is because of increased institutional investment. Many big financial institutions and corporations are investing in cryptocurrencies. This shows that they believe in the potential of these digital assets.
2) Use cases: Another reason why crypto is bouncing back is because of its increasing use cases. Cryptocurrencies are being used for various purposes like payment, remittance, trading, etc. This shows that there is a growing demand for these assets.
3) Regulatory clarity: Another factor that is driving the positive recovery of crypto is regulatory clarity. In many countries, regulators are providing clarity on how cryptocurrencies should be treated. This is giving more confidence to investors and leading to more adoption of these assets.
4) Improved infrastructure: The infrastructure surrounding cryptocurrencies has also improved a lot in recent times. This includes better exchanges, wallets, and payment processors. This makes it easier for people to invest in and use cryptocurrencies you can also check legit ways to make money with yuan.