Investing in cryptocurrencies, like other assets, requires knowledge, patience, and a willingness to take risks. The cryptocurrency market offers potentially high returns but also the risk of significant losses. Before investing, it's important to thoroughly understand how cryptocurrencies work, what the market trends are, and what your investment goals are. Key is to diversify your portfolio and never invest more than you are willing to lose.
𝗣𝗶𝗰𝘁𝘂𝗿𝗲 𝗳𝗿𝗼𝗺 𝗠𝗮𝗿𝗸𝗲𝘁 𝗖𝗮𝗽
Limited vs. Unlimited Supply
Cryptocurrencies are divided into those with limited supply and those without. Coins like 𝗕𝗶𝘁𝗰𝗼𝗶𝗻 and 𝗖𝗮𝗿𝗱𝗮𝗻𝗼 often seen as better protection against inflation, similar to gold. Their value can theoretically rise when demand increases while supply remains constant. The key question is whether demand will stay high. Events such as ETFs can release significant demand. Events in the crypto world play a crucial role.
ETF Launch in January 2024
In January 2024,𝗕𝗹𝗮𝗰𝗸𝗥𝗼𝗰𝗸 launched its 𝗕𝗶𝘁𝗰𝗼𝗶𝗻 spot 𝗘𝗧𝗙, significantly impacting the cryptocurrency market by adding demand.
The red line indicates the area around the fall of the FTX exchange.
The influx of new users correlates with price, so it’s also worth looking at the growth of new wallets, even though often the same users create these addresses.
Inflation and Cryptocurrencies
Currently, I can provide approximate inflation values for some cryptocurrencies with limited supply:
𝗕𝗶𝘁𝗰𝗼𝗶𝗻 (BTC): After the halving in May 2020, Bitcoin's inflation is about 1.8% per year, and this number will decrease every four years.
𝗖𝗮𝗿𝗱𝗮𝗻𝗼 (ADA): Inflation in Cardano is dynamic, designed to be around 3-5% per year, depending on the number of stakers.
Longevity of Cryptocurrencies
The question is how long the "𝗿𝗲𝗹𝗶𝗴𝗶𝗼𝗻" 𝗼𝗳 𝗕𝗶𝘁𝗰𝗼𝗶𝗻 other cryptocurrencies will last. Gold can be physically touched, and there is no indication that we will soon colonize other planets and increase gold supply. It’s important to remember that cryptocurrencies are a new technology that has only been around since January 3, 2009, when the first Bitcoin block was created, initiating this revolution. One should also note that many projects may not exist in seven years.
Example
𝗜 𝘄𝗮𝘀 𝘄𝗼𝗻𝗱𝗲𝗿𝗶𝗻𝗴 𝘄𝗵𝗮𝘁 𝘁𝗵𝗲 𝗯𝗲𝘀𝘁 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗶𝘀, 𝗮𝗻𝗱 𝗜 𝗯𝗲𝗹𝗶𝗲𝘃𝗲 𝘁𝗵𝗮𝘁 𝗿𝗲𝗹𝗶𝗴𝗶𝗼𝗻 𝗮𝗻𝗱 𝗺𝘂𝘀𝗶𝗰 𝗮𝗿𝗲 𝗲𝘅𝗰𝗲𝗽𝘁𝗶𝗼𝗻𝗮𝗹. 𝗕𝗲𝗲𝘁𝗵𝗼𝘃𝗲𝗻 𝗶𝘀 𝘀𝘁𝗶𝗹𝗹 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗳𝗿𝗼𝗺 𝗵𝗶𝘀 𝗺𝘂𝘀𝗶𝗰, 𝘄𝗵𝗶𝗹𝗲 𝘁𝗵𝗲 𝗰𝗵𝘂𝗿𝗰𝗵 𝗶𝘀 𝗹𝗶𝗸𝗲 𝗮 𝘀𝗺𝗮𝗹𝗹 𝗵𝗲𝗱𝗴𝗲 𝗳𝘂𝗻𝗱 𝗶𝗻 𝘁𝗵𝗲 𝗲𝗻𝗱. :)#BTCReboundsAfterFOMC #OMC #TCPredictedNewATH $BTC $Ada
