After everything came to a standstill, followed by a complete plunge across share markets, foreign exchanges and even cryptocurrency exchanges, all three markets are rising again. In fact, by the time the reader finds this post, it is quite likely that the market will have recovered to a good degree.
However, no other market has recovered better than the cryptocurrency exchange, and there’s a lot more to come yet. This is precisely the point where anyone interested or already invested in cryptocurrencies should consider making their initial or further investments, respectively. To provide more context to such a conclusion, let’s discuss a few key stats and forecasts, as detailed by the market surveyors and experts of financial analysis.
How Bitcoin Showed Uncharacteristic Maturity Post-Covid
It is true that bitcoin in particular has been an extremely volatile currency in the past, and there is a good chance that it will remain volatile for quite some time to come. However, all of happened in a time before the world got hit by the most devastating pandemic in more than a century.
Setting aside the previous volatility of bitcoin, if we were to simply look at a graph of its rise and fall from March to October 2020, it shows an exceptional fact that only crypto traders are well aware of. In roughly 7-months’ time, the biggest cryptocurrency of them all has risen from the low six thousands to high eleven thousands – low twelve thousands (all conversions made in USD)! In other words, at a time when every other asset class investment from precious metals to major share markets are still trying to recover, bitcoin has already more than doubled in its value from where it was when the lockdowns began.
A Steadier Rise
This time around, it was not the meteoric rise which we saw back in December 2017, when bitcoin almost doubled in its value within a matter of two weeks, only to lose more than half its total value in a month’s time and lose more than two-thirds of its highest value in a matter of three months or less.
Instead, this time around, bitcoin rose with the rapidity of a steady asset and is still continuing to rise, with occasional dips in between. While the major cryptocurrency still remains volatile, it has matured more as a currency in general, but in particular, bitcoin is now a safer long-term investment than most other classes of asset investment.
The Futureproofing of Bitcoin Investments
Whether the prediction of bitcoin reaching $1,000,000 per coin comes true by the end of 2022 – 27 remains to be seen, but there is no doubt in the mind of any financial expert that investing in bitcoin right now simply cannot be a poor investment. Even if the price goes down in the coming months, it will eventually rise and go past any figures that we have yet seen the cryptocurrency amount to. This is at least one point to which everyone involved agrees, even if at that point bitcoin does not reach the extremely optimistic $1,000,000 mark!
There is More than Just Bitcoin in the Market Now
It may have all started with bitcoin and bitcoin is still, by far, the most popular and well accepted form of cryptocurrency in existence. However, bitcoin is not the only crypto asset that you can own in 2020. Of course, not all of them have been as successful in weathering the pandemic and its multifaceted economic repercussions because Litecoin has lost a significant chunk of its value post-Covid. However, experts predict that Litecoin could very well be one of the better investments right now because it has lost so much value recently. By 2021, Litecoin is expected to surpass its previous highs, which means that those willing to take a bit of risk and invest in it now might reap heavy rewards in the future.
The price of Ether or Ethereum is hovering around the $370 mark in October, but it was valued at approximately $122 in March 2020. Admittedly, with a spike to $433 in mid-August and a consequent dip soon after, Ether has not been as steady as bitcoin this year. Even then, it has remained a more profitable investment, as compared to gold or silver. This example solidifies another fact that makes cryptocurrencies a solid investment in 2020; there is more to crypto trading than just bitcoin. You just need to find the best possible cryptocurrency exchange for the specific cryptocurrency that you wish to trade in.
The point is that if you are careful and keep a close eye on the exchange rates as a good investor should, you are going to have a significantly higher chance of profiting more from a crypto investment after Covid than by investing in anything else the market may have to offer for the foreseeable future.
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