After the fall of BTC, is crypto still a good investment

People’s interest in cryptocurrencies has grown a lot in the past year. This is mainly because famous people have been telling people to jump on the cryptocurrency train.

Some of them are likely to be really good investments because of this. There aren’t very many of them.

But they also say that many people might not use blockchain technologies for long. This is because the crash of cryptocurrencies this year hurt a lot of new investors who didn’t fully understand the risks they were taking. During this year’s crash, many new investors who didn’t fully understand the risks they were taking lost money.

Read my post on best crypto to invest in

What does it mean to say that money is “digital?”

For people who still don’t know what cryptocurrencies are or how they work, the most important thing to know is that they don’t need a central authority like a bank or government to function.

As more people started selling cryptocurrencies on the market, the price of bitcoin dropped below $20,000 for the first time since late 2020.

Instead, transactions are kept tracked by a blockchain, a digital ledger that is not controlled by one person. This kind of ledger is digital and shared. It lets a group of computers keep track of and check on financial transactions by working together.

A non-fungible token, or NFT for short, is a type of cryptocurrency asset that is often used. NFTs, “non-fungible tokens,” are digital assets with unique identities that can be traded. They are often traded the same way that paintings or other collectibles are. There are also other ways to use the technology, which could lead to a wide range of other uses in the future.

Many new financial technologies (NFTs) and cryptocurrencies are being created. Some, like dogecoin, were laughed at, but now they have value, and most people take them seriously. Bitcoin was the first digital currency, and now most people use and own it. A man whose name is still unknown began it in 2009. Since it was first put on the market, its value has increased by billions.

How likely is it that cryptocurrencies will make it?

Even so, when the $2 trillion cryptocurrency market crashed this year, tens of thousands of bitcoin billionaires lost all of their money. The “stablecoin” Terra didn’t work because there were bugs in its code. Because of this, it was no longer tied to the dollar, and the $40 billion worth of digital assets that went with it became almost worthless.

This caused the Terra network to fall apart. By August, one dogecoin was worth less than 7 cents. This means its value has dropped by more than 60% this year.

Not just this year but also in the past, the cryptocurrency market has gone down. Since the beginning, bitcoin has had several similar problems. In 2018, for example, the “great crypto collapse” caused the bitcoin price to fall by more than 60% in just two months. It went up by an amount that had never happened before the year before.

People who don’t have bank accounts or blockchain

Parlour is one of many business people who agree with cryptocurrency fans that the technologies behind cryptocurrencies, such as cryptography and blockchain, have the potential to make people’s everyday lives better. Even though cryptocurrencies are risky, this is still true.

People might be able to buy things without having to go through a bank. About 6% of Americans, or about 14 million people, don’t have a bank account. According to Parlor, some of the tech infrastructures that are being built right now will last a long time. But a clear legal framework must be in place for innovation to work. Visit Bitcoin Motion to receive an accurate picture of the trading of bitcoins.

The second most-traded cryptocurrency in the world is Ether. It is backed by the open-source project Ethereum blockchain network. Also, businesspeople can use it as a public resource to make things like NFT initiatives.

Some people who put money into cryptocurrency haven’t changed their minds. Do you want to buy digital currencies with your money? Why the current owners are still “committed” even though the market has been bad lately

Professor Kannan Srinivasan agrees that blockchain technology has a lot of potentials. He teaches at Carnegie Mellon’s Tepper School of Business, where he teaches business management, marketing, and technology.

 

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