Cryptocurrency is still a relatively young concept and many of those attempting to make money trading it don’t really understand the underlying technology. As any seasoned investor will tell you, never invest money in an idea you don’t understand. Luckily the Born2Invest team is on hand to help shed some light on the often confusing world of crypto and whether it ever makes sense to invest in Bitcoin.
If you’re in a rush the Born2Invest business news mobile app helps readers digest the crypto news summaries in small digestible chunks, helping them be up to date with the newest information in this field.
The number of cryptocurrencies has exploded
Over the past three years, the total number of traded cryptocurrencies has increased more than threefold, amounting to just over 3,000 individual offerings today. The rising popularity of utility coins demonstrates the growing interest not so much in the speculative component of the cryptocurrency market as in the technological background of each innovative startup.
The beginning of 2018 coincided with the maximum capitalization of the entire cryptographic market, which amounted to about $800 billion. The end of 2017 to beginning of 2018 was the golden era of cryptocurrency, when the price of Bitcoin rose to $22,000, and Ethereum was worth $1,400.
The crypto market has yet to return to the lofty heights of 2017 but there are positive signs that crypto will continue to be an important area of investment.
A troubled giant
In terms of capitalization, the cryptocurrency market remains divided into two primary segments – Bitcoin and Altcoins. Since the Bitcoin launch, more than $11 trillion in transactions have been processed by the blockchain. Recently, there was a single transaction in bitcoins worth the equivalent of $1 billion, with a commission of about $700. Despite these figures investing in bitcoin isn’t for the faint of heart.
The staggering drop in Bitcon’s value from $20,000 to under $5,000 over the course…