A year ago, bitcoin traded at $ 10 thousand, as of August 21 of this year, the value of the asset is $ 48 thousand. Over the past 12 months, cryptocurrency quotes have grown by almost 4.5 times.
At the same time, in April, the price of the coin set a historical maximum at around $ 65 thousand, writes RBC Crypto.
Experts told whether it is too late to buy bitcoin, and named the reasons why it may continue to grow. What is holding back the growth of the crypto market?
The cryptocurrency market is currently in the initial, early stage of its development, says Maria Stankevich, Development Director of the EXMO crypto exchange. According to her, the cryptoeconomics as a whole is now beginning to develop, the market still lacks regulation and infrastructure.
Also, the growth of the industry is hindered by:
- High energy consumption: high cost of electricity and computing power;
- Lack of legal framework. Lack of a unified method of state regulation of the sphere, international norms and practices;
- Lack of blockchain specialists of the required level;
- The inertia of the big players. Large companies, international banks continue to use SWIFT, VISA, American Express and usual banking services.
What room for growth does the crypto market have?
Now the capitalization of the crypto market is $ 2 trillion, the gold market is about $ 12-13 trillion, the stock market is $ 80 trillion, and with all derivatives – another $ 20-30 trillion, said Vladimir Smetanin, CEO of the Swiss financial company Newcent.
It is estimated that the cryptocurrency market is now less than 2% of the total capital market. At the same time, there are many prospects for digitalization.
“As a result, the crypto market should take at least 5-6%. And if this is so, then there is already a two-fold, three-fold increase from the current volumes, ”the specialist predicted.
Is it too late to buy cryptocurrency?
We can say that it is not too late to buy bitcoin and altcoins, but on the condition that we are considering long-term investments (3-5 years), said Ivan Sharov, CEO of an online store of mining equipment.
According to him, now institutional investors and large funds are buying cryptocurrency, and their investments give the market a growth stimulus. At the same time, the specialist warned that it is not the best time for short-term investments, since the crypto market is extremely volatile, although it has prospects for growth and updating of historical highs.
Large investors and funds express confidence in the crypto market, Stankevich added. According to her, cryptocurrencies are backed by financial institutions, exchangers, exchanges, miners. And the more actively the infrastructure develops, the faster the bitcoin rate will grow, the expert explained.
The CEO of Newcent agreed that it is not too late to buy bitcoin. He compared cryptocurrency to Apple, Amazon or Microsoft stocks, which are actively growing in value. Smetanin concluded that now there is a great demand for cryptocurrencies, and the market is still at the beginning of the path.