What’s next for the Crypto world?
While writing this, the value of Ethereum is 4,054.59 USD (86% price increase from last month), the value of 1 WAVES is 36.84 USD (gain of 112.91%), the value of a Dogecoin is 0.56 cents (581% price gain from last month), and I can give you more than 50 examples right now.
But the next thing is where this is heading?
The price change of Cryptos aren’t controlled by any governments or banks, or any other financial institutions. They instead move according to the supply and demand of a particular coin. Circulating supply is another factor that contributes to this price movement. So if a coin is cheap and the supply is very less in the market, big and rich investors can easily manipulate the price.
But one thing is for sure, that there is no CERTAINTY in the Cryptocurrencies. If we look at the charts of these Cryptos, we can find that 90% of them have grown substantially during the past year. But then there are others that have dropped, like TNC, whose current price is 0.011 USD which was 0.28 USD last year.
There are also times when the prices of Cryptos have soared up significantly due to various backings by major institutions, exchanges or people like Elon Musk (the second richest man on the planet as of now). The price of Dogecoin went up when Elon Musk tweeted something related to “Doge” multiple times on his Twitter. Last week in Saturday Night Live (SNL), millions of people tuned in to watch what Mr. Musk would say about Doge and how much it would increase the coin's price. But then something unexpected happened when he admitted that it’s nothing more than just a “hustle”.
Guess what happened next? The price of Dogecoin dropped from 0.77 USD to 0.50 USD in an hour (a decrease of 35%). Since then, he tweeted two more times about Doge, but it didn’t soar up the price to what it was last week as everyone was expecting. If we try to figure out the price of the Doge at the end of 2021, we really can’t predict anything. It could be as down as 0.1 USD or as up as 2–3 USD or more.
Now, if we talk about Cryptocurrencies as a whole, at the start of 2021, bitcoin constituted 67% of all cryptocurrencies in the world. Now coming to the present day, it only consists of 42% of the entire market. Though no one can predict anything about Cryptocurrencies, some people are prognosticating that once it drops a little more, maybe to 30–35%, the price of Bitcoin may come down remarkably. The prices of Altcoins are dependent on Bitcoin, but now it may not. The future of currencies is definitely the digital ones since they are straightforward to handle.
As a whole, it will affect everything. Though what we know right now is investing should be done wisely. Remember not to dive right into the Crypto market just because of Fear of Missing out (FOMO) but rather researching and reading about it for at least 50 hours or so. Always invest what you can afford to lose cause when the Crypto goes down someday, and inevitably it will because what we have seen is we have cycles where the prices go up and then come crashing down, then it will affect the other stable coins. So enjoy while this bubble is intact cause it’s going to burst sooner or later.
Disclaimer: I am not a financial expert, I do not recommend anything, and I own only a minimal amount of Cryptos.
