June 25, 2024

What awaits cryptocurrencies? Let's try to figure it out

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I haven’t looked at the Bitcoin chart for a long time, even just out of idle curiosity, and thereforeI was very surprised that the most famous digital currency in the world once again exceeded $ 9,000.

No, I have never invested and do not plan yetinvest in cryptocurrencies in principle, as completely incompetent in this area, but my perfectionism makes me keep abreast of events here too. As they say, just in case.

I must say, a little immersed in thistopics, I highlighted drivers that are able to support cryptocurrencies in the foreseeable future. I’ll leave them here for the story, so that you can always return to them if necessary:

✅ Chinese Indirect Support Coursecryptocurrencies: it is no coincidence that President Xi Jinping once said that "China must take advantage of the opportunities that blockchain technology provides." However, at the same time, the Shanghai branch of the People's Bank of China calls for a cautious approach to investing in cryptocurrencies, hinting at great risks.

✅ Conflict between US and Iran

✅ The launch of bitcoin options on the CME Chicago Commodity Exchange, the torques of which began on January 13, 2020 and caused great interest among investors from all over the world

✅ To some extent overheated world debtstock markets and stock markets contribute to a certain flow of investments from real appreciated assets (stocks, bonds) into undervalued (according to many) cryptocurrencies

✅ Even the coronavirus epidemic, due towhich has serious problems in trade with China (primarily in terms of the delivery of equipment for mining new coins), contributes to increased demand for cryptocurrencies, amid emerging problems with its extraction

✅ Plus, it’s scheduled for May 2020called bitcoin halving - a procedure for halving the size of a reward to miners for adding a new block to the blockchain. Again, this should lead to an increase in demand for bitcoin.

✅ There is a good chance that US authorities will approve the launch of exchange-traded funds (ETFs) for cryptocurrencies, which could be another positive factor for the growth of quotes

? Well, the main limiting factor is the traditionally very restrained and cautious policy of global regulators in relation to cryptocurrency, which prevents its scaling.

? Perhaps it is this factor that continues to push me away from the crypt even now. In general, we will see how the situation will develop further, I will sit on the fence - I will observe.

What awaits cryptocurrencies? Let's try to figure it out