The year 2021 was big for cryptocurrency, but what about 2022…. will crypto investment die forever? Bitcoin has hit several all-time highs followed by vast drops in prices and a lot of buy-ins from major companies.
Unfortunately, the most recent market crash [13th June 2022] was ignited by Tesla’s decision to not accept BTC payments for their products. Tesla had bought $1.5 billion of crypto, just three months ago. Elon Musk, the CEO of this electric company tweeted that the policy was making a U-turn over environmental concerns associated with Bitcoin’s mining process.
The thing to remember here is that Tesla still has its BTC holding in its crypto wallet, which Elon Musk confirmed on Twitter.
Ethereum and other popular cryptocurrencies experienced their prices collapse in this most recent crash. It was a huge hit to worldwide traders and investors.
After Tesla’s decision, China announced a ban on financial institutions and banks offering their clients services that involve cryptocurrencies. It was speculated that cryptocurrencies’ value has skyrocketed and dropped. Dicey cryptocurrency trading has bounced back. It is seriously infringing people’s property safety and upsetting the normal monetary and economic order.
Will cryptocurrency recover or its investment will die forever?
Once cryptocurrency was understood among a tiny investors group but today it has become a household name too quickly. Bitcoin critics are consistently sharing unfavourable viewpoints. Their major argument is Bitcoin falling to zero when they say BTC’s journey will end. It is not simple!
Currently, major cryptocurrencies have positioned themselves as important possessions in the digital landscape. Cryptocurrencies are highly volatile and the latest crash has created fears because investors don’t desire to lose their capital. The theory of crypto investment dying forever has been speculated on the speedy crashes, which have the potential to take crypto values to zero.
Investors must understand how Bitcoins or Ethereums work before having faith in predictions associated with its collapse. For example, BTC has an extensive network comprising 100,000 nodes. The majority of investors are involved in it for the long term. Some strongly believe that someday cryptocurrencies will gain a legal tender status. There are talks officially going on about how to make crypto safe for investors as well as less attractive to cybercriminals.
What high volatility needs to mean for crypto investors?
For crypto investors, the meaning of high volatility means they need to play a long game and not feel concerned about the short-term ups and downs. Just invest in cryptocurrency and forget it. Emotional reactions cause investors to take rash actions, which make them lose significantly on their investment.
Investors can even swap to stable coin like USDC. USDC is completely collateralized with the US dollar. Swapping USDC allows a neat way to invest in high volatile currencies like BTC. On ZenGo X you can gain a deep understanding of cryptocurrencies and how cryptography works.
Remember, large corporations have shown interest in crypto mining and trading, which has grabbed the attention of government authorities.
Crypto has survived from high volatility and anonymity….and it has the potential to overcome the latest crash!