I know, I know. The entire crypto market is melting as we talk. Investors have turned their backs on critical investments in 2022 amid geopolitical conflicts, skyrocketing inflation, supply difficulties to all industries, and more. As the book’s definition of “problem solving,” the crypto piece has taken most of this correction in the marketplace.
Among the 81 cryptocurrencies with market capitalization of around $ 500 million today, only one name has risen more than 1% in 2022. At the same time, 69 names have fallen by 50%. or You can’t trust a stablecoin to hold up these days.
So how can I say how to buy cryptocurrencies in this volatile market? This fall is the beginning of the end – isn’t it?
That’s what this fall will accomplish
Not too fast. I think this market regulation is good for cryptocurrency investors in the long run for two main reasons:
- Low volatility should shake weak hands and less serious cryptocurrency programs. For example, I was amazed to see Dogecoin (DOGE -6.88%) a Shiba Inu (SHIB -7.84%) coming out without this price problem. Their meme trading pool is not enough in a world where winning cryptocurrencies is necessary to provide real value or profit in the long run. Dogs can be small in front of them for a while, but they won’t stay close to the top of this section’s selection list for very long.
- Blockchain systems and cryptocurrencies should soon get on their feet, backed by a robust regulatory framework and a plethora of real -time use cases. The idea of ultra-secure digital transactions without middlemen and third-party financial managers such as banks and financial services is too strong to ignore. There is a turmoil coming in the financial world, and it relies on cryptocurrencies. The real game in the future of decentralized money is that they could end on their own after this short -lived downturn and return to changing the financial world.
Therefore, I recommend taking a closer look at certified guides as well Bitcoin (BTC -4.17%) a Ethereum (ETH -7.31%) when the crypto market is collapsing. These digital currencies will play a big role in the future, and I expect many bags to return from all three in the coming years.
The first name in the game is the largest blockchain -based asset in the world, with a market capitalization of $ 433 billion. That’s a big drop from $ 1.26 trillion last November but it’s an honorable market leg.
The big scale of Bitcoin is that it is the main strength of the cryptocurrency. The money was created as a “peer-to-peer version of electronic cash,” which was intended to allow people to send payments to each other without interference from financial institutions.
“Electronic cash” is another system for saving money in the long run. Fiat currencies such as the US currency or the Euro provide stability through the support of the government that issued them. Every national currency has used this system since the last settlement, Switzerland, which released the Swiss Franc’s relationship to gold reserves in 1999.
But Bitcoin is starting to replace traditional currencies. El Salvador saw digital currency in the law for international debt (including U.S. currency) from September 2021, followed by the Central African Republic in the spring of 2022. The Bitcoin market is stagnant and mature.
We’re probably looking at the first product of a global currency exchange strategy here, with a long -term market cap worth trillions of dollars. Buying now while prices are low will give your bank a great incentive for years to come.
The market value of Bitcoin is also used in Ethereum, but in a different part of the crypto market. While Bitcoin can handle digital payments and savings in their simplest ways, Ethereum has added the ability to execute program code and start trading around converting currencies. market status and other importers. These smart deals are the basis of new products and services such as non-fungible tokens (NFTs), decentralized financial applications, and blockchain-powered games.
This isn’t the only provider of smart contract features, and some of its competitors can execute their code faster and faster than Ethereum. But that will soon change, as the Ethereum community hopes to give the blockchain system a major boost to what’s called “The Merge” (aka “Ethereum 2.0”). The event was scheduled for August 2022, and the final costume rehearsal took place without any problems.
After The Merge, smart contract developers can continue to rely on Ethereum’s gaming platform without having to worry about slow performance or high costs. You know how it works – the rich get richer and the winners win. The so -called Ethereum killers are not a real threat to the smart contract process.
Anders Bylund has a position in Bitcoin and Ethereum. Motley Fool has a position and promotes Bitcoin and Ethereum. Motley Fool has an advertising policy.