Despite the depreciation of all leading cryptocurrencies in the second half of the year 2019, digital coins have been preserved the title of the most profitable asset and exceeded the size of dividends of stocks, bonds and valuable goods.
Digital Assets Data conducted a studythe dynamics of changes in return on investment in 10 virtual currencies with the highest level of capitalization. As a result, it was found that cryptocurrencies lost the most popular assets (securities, gold and oil) from January to March 2019. However, at the end of April, coins and tokens were ahead of all rivals with the exception of oil in the amount of investors ’profit. At the same time, from mid-May to the present moment, cryptocurrencies retain an advantage in relation to all competitors.
Top 10 virtual currencies by capitalizationhold the palm by two main market indicators: volatility (95%) and profitability (45%). For comparison: in oil, these figures are 40% and 25%, respectively. In 2019, Bitcoin (BTC) went up 100% and took first place in terms of value growth among the ten leading digital assets. Ethereum (ETH) added 35%, while XRP fell 25%.
From 2009 to 2019, the S&P 500 index grew by 369%,and the Dow Jones Industrial Average increased by 326%. Since March 2010, the BTC rate soared by 12 million percent (from $ 0.05) and left all rivals far behind. The success of cryptocurrencies is due to three main characteristics:
- high volatility of the exchange rate and market liquidity;
- simplicity and convenience of trade;
- lack of control over the turnover of decentralized virtual currencies.
Skrill Payment Platform Director LorenzoPellegrino believes that the digital asset market is still in its infancy. Therefore, the exchange rate of coins is unstable and makes it possible to quickly earn money. According to him, during the development of the industry, the level of volatility will decrease, which will make cryptocurrencies a less attractive trading tool.