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.
๐ฃ๐ถ๐ฐ๐๐๐ฟ๐ฒ ๐ณ๐ฟ๐ผ๐บ ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐๐ฎ๐ฝ
Limited vs. Unlimited Supply
Cryptocurrencies are divided into those with limited supply and those without. Coins like ๐๐ถ๐๐ฐ๐ผ๐ถ๐ป and ๐๐ฎ๐ฟ๐ฑ๐ฎ๐ป๐ผ 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 2024,๐๐น๐ฎ๐ฐ๐ธ๐ฅ๐ผ๐ฐ๐ธ launched its ๐๐ถ๐๐ฐ๐ผ๐ถ๐ป spot ๐๐ง๐, 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 itโs 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:
๐๐ถ๐๐ฐ๐ผ๐ถ๐ป (BTC): After the halving in May 2020, Bitcoin's inflation is about 1.8% per year, and this number will decrease every four years.
๐๐ฎ๐ฟ๐ฑ๐ฎ๐ป๐ผ (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 "๐ฟ๐ฒ๐น๐ถ๐ด๐ถ๐ผ๐ป" ๐ผ๐ณ ๐๐ถ๐๐ฐ๐ผ๐ถ๐ป 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. Itโs 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
๐ ๐๐ฎ๐ ๐๐ผ๐ป๐ฑ๐ฒ๐ฟ๐ถ๐ป๐ด ๐๐ต๐ฎ๐ ๐๐ต๐ฒ ๐ฏ๐ฒ๐๐ ๐ถ๐ป๐๐ฒ๐๐๐บ๐ฒ๐ป๐ ๐ถ๐, ๐ฎ๐ป๐ฑ ๐ ๐ฏ๐ฒ๐น๐ถ๐ฒ๐๐ฒ ๐๐ต๐ฎ๐ ๐ฟ๐ฒ๐น๐ถ๐ด๐ถ๐ผ๐ป ๐ฎ๐ป๐ฑ ๐บ๐๐๐ถ๐ฐ ๐ฎ๐ฟ๐ฒ ๐ฒ๐ ๐ฐ๐ฒ๐ฝ๐๐ถ๐ผ๐ป๐ฎ๐น. ๐๐ฒ๐ฒ๐๐ต๐ผ๐๐ฒ๐ป ๐ถ๐ ๐๐๐ถ๐น๐น ๐ด๐ฒ๐ป๐ฒ๐ฟ๐ฎ๐๐ถ๐ป๐ด ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ฒ ๐ณ๐ฟ๐ผ๐บ ๐ต๐ถ๐ ๐บ๐๐๐ถ๐ฐ, ๐๐ต๐ถ๐น๐ฒ ๐๐ต๐ฒ ๐ฐ๐ต๐๐ฟ๐ฐ๐ต ๐ถ๐ ๐น๐ถ๐ธ๐ฒ ๐ฎ ๐๐บ๐ฎ๐น๐น ๐ต๐ฒ๐ฑ๐ด๐ฒ ๐ณ๐๐ป๐ฑ ๐ถ๐ป ๐๐ต๐ฒ ๐ฒ๐ป๐ฑ. :)#BTCReboundsAfterFOMC #OMC #TCPredictedNewATH $BTC $Ada
