How Is Cryptocurrency Performing And What Are Its Future Prospects?

2022 has been a turbulent year for cryptocurrency so far. There have been some massively popular projects that have turned out to be scams, a convicted felon was reported to be skimming the profits of a huge project, and multiple influencers have been accused of creating pump and dump schemes. All of this has resulted in a loss of confidence in the crypto market as so many people have reported losing incredible sums of money.

The Start of 2022

At the start of the year, there was a big dip in the market, and almost every currency lost value. Ethereum and Bitcoin were both massively down and the market wasn’t showing much sign of recovery for several months. Despite most Cryptocurrencies seeing a massive loss, some projects managed to survive the crash by being well set up. Titano makes its income by taking a tax when users buy and sell the currency, which means that the unpredictable market actually brought more of an income in for investors.

After the initial dip at the end of December 2021, most Cryptocurrencies have taken a long time to recover and for the most part, have been quite stable at the lower position since.

Why Has Cryptocurrency Seen Such a Dive In Value?

What’s caused this drop? It’s hard to tell. Traditionally there is always a slight dip around winter but it was particularly bad this year. One of the big reasons for such a big dip in the market can be blamed on the increase in amateur investors getting into cryptocurrency as a result of discussions becoming more mainstream.

More experienced investors are usually happy to wait out a drop, knowing that it’s likely to recover to the same or higher position in the future. Amateur investors tend to be more emotional about losing money, so if they see the price start to drop they will panic and sell off their coins which drops the price and prompts more amateur investors to do the same. Amateur investors are also more likely to get involved in poor quality projects and invest in poor quality coins which end up dropping or entirely failing, prompting a selloff in other areas of the market too.

What About Backing New Cryptocurrency Options?

There has also been a lot of excitement around new, untested and un-backed projects. These projects often get more experienced investors that feel confident in taking risks interested. There have been a lot of new and exciting projects and coins coming out over the past few months and while some have done well, others have crashed which has further reduced confidence in the market.

What Does The Rest of 2022 Look Like?

After almost four months of waiting out the dip, the cryptocurrency market is finally recovering. So, how are the Russian invasion and all of the sanctions going to affect the market recovery?

Realistically, it’s hard to tell but it could actually have a big impact on growth for the more popular cryptocurrency coins.

The Future of Cryptocurrency

Although it is hard to say exactly what the future looks like for Cryptocurrency, it certainly isn’t going anywhere anytime soon. In fact, for those that are unable to access traditional bank accounts and money you can still wager with cryptocurrency and can source compatible operators on this list of the best casinos in the UK, which can more than likely be accessed from anywhere. Whilst playing poker might not be at the forefront of your mind, it just goes to show how flexible Cryptocurrency can be for people when used in the right way. After all, we already know that Cryptocurrency is largely untraceable, which might make it useful for those that are needing to take part in financial transactions in places of conflict.

How Is The Ukraine and Russia Conflict Affecting Things?

As it stands, Russian citizens have no way to pay for anything outside of the country because of the Visa and MasterCard ban. With the country entirely cut off from the rest of the world, Russians might be able to buy cryptocurrency to get around the ban – particularly for sending international payments.

Secondly, the Ruble has become an almost worthless currency after Russia was hit with a long list of sanctions and saw multiple big-name brands opting to cease operations in the country as a result of mounting pressure from protesters. Typically, real-world currencies don’t fluctuate as much as Cryptocurrencies which makes converting Rubles to any other real-world currency pointless as well as difficult thanks to the sanctions. Investing in a cryptocurrency that’s low at the moment but has the potential to grow could be a great option for Russians who are willing to take a risk and want to find a way to get some of the value back from their money.

Multiple experts have warned that cryptocurrency could be used as a way to circumvent the bans, but realistically it would be difficult to get every crypto project to agree to ban Russian users. On the flip side, if a large percentage of Ukrainian investors start selling off their crypto coins it could drive the market down further. It really is anybody’s guess at the moment, but it’s worth investing and waiting to see what happens.

Unlike most other currencies, there isn’t a long track record of Cryptocurrency under its belt which means that it is hard to predict how world affairs and timelines will affect its value of it. Traditional currency such as the US Dollar or the Great British Pound have a much longer history behind them, which for many people helps them feel confident that these currencies aren’t going to dive anytime soon. Cryptocurrency has always been an investment that is a big risk but also the potential for big reward and those interested in any sort of digital currency will certainly be interested in what the next few months means and waiting for the right time to make their next Cryptocurrency investment.

Source: Read Full Article