investors opinion on cryptocurrency

Opinion of Professional Investors On Cryptocurrency: Why Bitcoin Is Falling

For many professional investors, the term “cryptocurrency” conjures up all sorts of images: schemes that are almost certainly scams; volatile prices that make even the most experienced of investors nervous; and products with mysterious names like Bitcoin. However, bitcoin is simply one of many different types of digital currencies that are gaining recognition for their predictability, stability, and usefulness in today’s world.

The same could be said for bitcoin back then as well. If it hadn’t been for its association with cryptocurrency and its dramatic price increase over the past few years, it probably wouldn’t be as well-known or highly valued by the general public as it is now.

Bitcoin’s Value Has Declined Because of Speculative Psychology

Most investors are familiar with the investing strategy called “selling low, buying high.” The idea is to buy a stock that is falling, then sell it when the price rises again and make a profit. Unfortunately, the opposite strategy can also work. If you’re investing in a volatile investment like a stock, you want to make sure you’re buying when the price is low so you can reap the rewards of volatility and make a profit when the price rises again.

But when it comes to cryptocurrency, many investors are buying high and selling low. The price of bitcoin is currently falling, even though it’s hit all-time high prices in the previous month. That’s because many investors are waiting for a “corner” to turn up before buying again.

Bitcoin’s Value Is Currently at an All time High

When you look at the current price of bitcoin, it doesn’t reflect its highest price point. That distinction belongs to Dec. 20, 2017, when the price of bitcoin crossed the $20,000 mark for the first time. At the time, the price of bitcoin was almost 50% higher than it is now.

However, that price increase wasn’t the result of a surge in demand, but rather an uptick in the price of other cryptocurrencies. So while bitcoin’s current price is lower than its highest price, it still represents a record surge in demand. As the chart below shows, the price of most cryptocurrencies has been on a steady rise since then.

The “Wild West” of Cryptocurrency Exchanges

Many people are understandably nervous about investing in digital currencies like bitcoin. That’s why they prefer to invest in traditional assets like stocks and bonds, which have been proven to yield greater returns. Unfortunately, that means that when it comes to investing in cryptocurrencies, many investors are putting their money into “unproven” territory. They’re putting their money into unproven or “Wild West” areas where there’s no regulation, no one to help you through the process, and no one knows if your investments are going to pay off or not.

That’s where cryptocurrency exchanges come into play. They’re almost like stock and bond exchanges for cryptocurrencies, where you buy and sell different coins according to “price rules” that regulate the market. Unfortunately, many people buying and selling cryptocurrencies are doing so without any sort of understanding or knowledge about how exchanges work or how the market is supposed to work.

Bitcoin is a Scam

Many people bought into the cryptocurrency craze thinking they were buying a safe investment — something with a long track record of reliable returns. Unfortunately, the truth is that most cryptocurrencies aren’t safe investments. In fact, most popular cryptocurrencies are speculative and risky investments, which is the main reason they’ve seen such a dramatic price increase over the past year. So, what’s the scam part? Well, investors need to be careful when dealing with cryptocurrency exchanges.

That’s because almost all of them are run by scammers. The operators of most exchanges are either unskilled or just trying to take advantage of unsuspecting investors. That being said, most legit exchanges provide good service, including reliable trading features and low trading fees. If you’re investing in cryptocurrencies, you should definitely check out Coinbase, Kraken, Binance, or Bitfinex.

There are Lots of Other Cryptocurrencies Out There

At the end of the day, bitcoin is just one of many different types of digital currencies that are gaining recognition for their predictability, stability, and usefulness in today’s world. The same could be said for bitcoin back then as well. If it hadn’t been for its association with cryptocurrency and its dramatic price increase over the past few years, it probably wouldn’t be as well-known or highly valued by the general public as it is now. Bitcoin has been an exciting investment track record over the past few years. But now, several factors have conspired to cause its value to fall substantially.

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