Is It Too Late To Invest In Crypto?

Everyone who is at least familiar with the cryptocurrency market at least once came up with the idea: I would like to return to 2009 and buy bitcoins, and by the time of today to have a huge fortune, to live on my own island in the ocean and not know any worries. The rapid rise of Bitcoin is a Black Swan, it was almost impossible to predict it, but the further development of the market is quite predictable, and everyone can make money on it even today.

In 2018, the capitalization of the US Corporation Apple alone exceeded a trillion dollars, the capitalization of the US stock market at the time of 2012 — $ 12 trillion. The total capitalization of the crypto-currency market in April 2019 is only 182$ billion. However, this ratio should not be taken as an indication of the unattractiveness of the crypto-world, on the contrary, the market is still young, the ceiling is far away, and the growth prospects are enormous.

The bubble does not burst, the pyramid does not collapse

There are always skeptics, in any niche associated with innovative and not yet fully studied technologies. Bitcoin, like other cryptocurrencies, is foreshadowed by the imminent collapse, but the crypto market is growing, contrary to these statements. Since the beginning of the year, the digital gold exchange rate has grown from $ 3800 to $ 7000, and the trading volume is growing.

However, behind the conviction of skeptics in the near collapse, there is a small share of common sense: most cryptocurrencies can really simply disappear in the near future. This applies to those projects that do not carry any value to the industry and its participants, except for opportunities for speculative trading on exchanges.

The BeeNode project offers a cryptocurrency that will become a mean of payment, as well as a self-sufficient ecosystem that will allow these payments to develop. Over time, only those cryptocurrencies will remain on the market, which will be oriented to use by analogy with fiat money.

It is not too late to invest in the crypto market

After Bitcoin has grown in a few years to unimaginable indicators: from a few cents to twenty thousand dollars per coin, many people interested in the crypto market decided that this is either the ceiling or the value is very close to the ceiling. Let’s try to understand whether there is a ceiling at all and if there is, then where it actually is.

As of April 2019, the total capitalization of the crypto-currency market is about $ 180 billion, and at the peak, in January 2018 it reached almost $800 billion. in Fact, this means that the current capitalization does not prevent it from growing four times in the foreseeable future.

The daily trading volume on the cryptocurrency market has been growing steadily over the last year, despite the fact that since January 2018 the value of cryptocurrencies from the top of the capitalization rating either falls or remains at the same level as the total capitalization. A year ago, the daily trading volume fluctuated at the level of $ 12 billion, and in April-may 2019 it increased significantly: up to $ 50 billion.

Such dynamics demonstrates an important point: cryptocurrencies become interesting for large investors. This fact may be interesting as a root cause and as a consequence.

If the steady and consistent growth in the volume of daily trading is a consequence of the increased interest in digital assets on the part of major players, the market is waiting for a Renaissance due to the influx of new investments. If the reason for the growth actually lies in something else, the outcome is also promising — the growth of daily trading volume will certainly attract major players who will stimulate the market further.

What processes the market needs

The cryptocurrency economy and the industry of blockchain projects can hardly grow and develop in complete isolation and detachment from the real economy. By and large, the processes necessary for the growth of the cryptocurrency market have already been initiated and are ongoing.

First, the stock market needs to be integration with the real sector of the economy: if the decision on the basis of crypto-currencies will be in demand by large enterprises and multinational corporations, the growth will not keep itself waiting long. Such processes have been launched: large banks allocate teams to study the capabilities of the blockchain to separate divisions, and some banks even now introduce distributed registers into their Arsenal to speed up and reduce the cost of transactions.

Secondly, the niche of cryptocurrencies needs effective tools and mechanisms that function properly in the real economy. Someone is convinced that the crypto market needs a clear and understandable system of state regulation. We at BeeNode see the situation a little differently: the market can perfectly cope without state regulatory bodies if officials are guided by the principle of “do no harm”.

This is not about the invisible hand of the market, which Adam Smith spoke about, but about numerous organizations and associations operating within the industry, and not related to governments. Despite the fact that there are difficulties, the prospects for development are rosy — there are all conditions for favorable cooperation of projects and systematic development of the market as a whole.