- The cryptocurrency market is growing at a rapid pace, however, it is still evident that cryptocurrency has been the secondary system.
- A small percentage of the world population invests in cryptocurrency when compared to the centralised system of banks.
- However, there are three reasons why crypto will witness parabolic cycles.
The cryptocurrency market is growing at a rapid pace. Bitcoin, when first in the market were worth 0.0008 USD. The first real increase in the value occurred in July 2010. Now, each bitcoin is worth 9692 USD. However, it is still evident that cryptocurrency has been the secondary system. Cash is still the prevailing system of transactions, and some people are still unaware of the wonders of cryptocurrency. A small percentage of the world population invests in cryptocurrency when compared to the centralised system of banks. The crypto trader explained the reasons that the market of the cryptocurrency will see a parabolic cycle.
Crypto will likely continue to see parabolic market cycles for a few reasons:
-mostly supply/demand with no anchoring to traditional revenue models
-hasn't reached market saturation, still a very small % of global population uses them
-speculative boom/bust market psychology
— ฿TF%$Brrrrrr! (@CryptoHustle) June 8, 2020
Mostly supply/demand with no co-ordination with the revenue trade market
In the previous two years, the cryptocurrency market has been highly volatile. The worth of the cryptocurrencies was highly unpredictable. It went through many ups and downs. According to analysts, the Bitcoin pricing hugely depends on the demand for it in the market and the supply. However, there are notable cryptocurrencies in the competition, which increases the net worth of them. In a traditional stock market, the prices are determined both by the buyers and the sellers’ strategies. However, no such dynamics followed when it comes to cryptocurrency.
A small percentage of the global population use Cryptocurrency
As per a survey conducted by a Moscow based cybersecurity firm Kaspersky Lab, only 19% of the global population have purchased cryptocurrencies. And out the 19% mostly companies and technology-loving people. According to some people, it is because this is hard and many scams are going on.
Speculative boom/burst market psychology
The value of a few cryptocurrencies has increased exponentially. People are starting to think about the replacement of paper money and hold the perception that it could bring them instant riches. But let us not ignore the fact that bitcoins produce no income, and again the bitcoin supply is limited to only 21 million coins.