Crypto-Market Volatility Still a Scare-Factor for Newcomers
Since the introduction of the cryptocurrency market to the world, investors have flocked towards the market in massive numbers. As with the countless features of cryptocurrencies, the digital assets have become the world’s most attractive innovation in terms of finance for a few years now.
There is no possible way of calculating an exact number of how many investors are involved in the cryptocurrency market, however, as of now, more than 34M BTC wallets are in current operation, this is also not including every other cryptocurrency available right now. Earlier on in 2018, a report by a cryptocurrency exchange in London reported a doubling in the percentage of women involved in crypto, climbing from six percent to 13 percent in six months.
Through the countless incidents and shift in conditions of the cryptocurrency market, interest in investing does not seem to waver whatsoever. Adding to the massive amount of interest, a large group of these investors has kept steady in terms of investing due to concerns regarding the entire industry. Many of these investors’ main concerns relay in the fact that an initial coin offering (ICO) could be a potentially fraudulent one. Countless other investors share concerns regarding crypto in general although one common, and possibly the most concerning factor, is how volatile the current market is.
Claimed by many as the most volatile innovation or asset right now, many experts have voiced their opinions, stating that cryptocurrencies are not stable or prepared enough to replace fiat currencies as a method of pay. Due to the volatility and instability of the market, one could either rack in millions in profit or lose every cent in a matter of minutes.
Bitcoin happens to be “living” proof of the market’s volatility, seeing as how the first and leading cryptocurrency climbed from $1000 in value to its record high of $20K last year before dropping down to $6000 within a month and a half, evidently displaying how unreliable the market can be. BTC has been suffering for a while and dropped down to just over $7000 in price following its small break past $8000, the highest it has been in the last two months.
Given that market volatility has no actual “cure”, values will keep on shifting. However, there are times when the market will shine and benefit every involved individual, or drop and take everyone along with it. This has proved to be a challenge for the market itself in terms of drawing in new investors due to the widespread concerns.