The cryptocurrency market contains the highest and most growing investment opportunities in the world, but investing in cryptocurrency is not an easy matter and it needs patience to learn to understand it well before embarking on and entering into it with real money.
As the dollar continues its slow decline, investors are scrambling to find safe-haven assets.
Some choose traditional options, such as gold or the Swiss franc.
However, since the spread of the Coronavirus pandemic, traders and investors are thinking of new opportunities in an attempt to offset losses and find shelter from the economic crisis.
Some, including institutional investors, are taking a serious look at investing in cryptocurrency.
It is not easy to understand the market, as it is branched and wide and has many numbers and statistics. We have chosen four main ones to display in this article, which are as follows:
1- Bitcoin dominates more than 57% of the cryptocurrency market:
Bitcoin remains the king of the cryptocurrency world, and it is unlikely to change or abdicate anytime soon.
According to CoinMarketCap , Bitcoin alone currently controls 57.5% of the total cryptocurrency market.
Since August 2018, Bitcoin has dominated more than 50% of the total cryptocurrency market.
The Bitcoin Dominance Index is a powerful indicator of the state of the cryptocurrency market in general.
Bitcoin plays the role of 'digital gold', so in times of turmoil, cryptocurrency investors often use it as a safe haven.
If bitcoin takes over the market, it is usually a sign that altcoins are diminishing in size and market value.
2- The death of more than 1600 digital currencies and the cryptocurrency project since 2018:
In 2018, there was an explosion of crypto projects, often starting in the form of Initial Offerings (ICOs).
Since then, according to Coinopsy, more than 1,600 crypto projects have died.
This is either due to a lack of funding or activity, or simply because the project was an outright fraud.
This number helps demonstrate the high-risk nature of investing in cryptocurrencies.
Many projects will still fail in the future, even those with good intentions, and it is up to you as an investor to do your research due diligence so that they are not harmed.
If we only notice what happened in the order of the first ten currencies in terms of market value, we see the progress of other projects and decline until they die or their performance weakens, so we repeat that it must be researched and well informed before investing in any crypto project.
3. Fixed Bitcoin Offer:
Bitcoin is often described as digital gold, but there is truth to this statement.
One of the great advantages of Bitcoin is that, like gold, it has a steady supply of digital currencies that can be mined.
This prevents the creation of new digital currencies that may lead to runaway inflation as the market is flooded with them.
About 18 million of a total of 21 million coins have already been mined.
Some analysts believe this feature is slowly leading Bitcoin to become a hedge against inflation.
This controversial argument is attracting more attention amid concern the Fed is expanding its balance sheet in trillions of dollars in the wake of the coronavirus impact.
And it is not the US Federal Reserve the only pumping and printing money that many central banks around the world do the same.
4- 83% of business leaders believe that cryptocurrencies will become a strong alternative to fiat currencies by 2030:
Deloitte's Global Blockchain Survey 2020 revealed that executives' attitudes toward blockchain technology are beginning to change.
Business leaders now see blockchain changing the way business is done.
Additionally, a growing number of leaders are starting to view Bitcoin and other cryptocurrencies as an effective alternative to fiat currencies.
Finally:
Investing in crypto is not for the faint of heart.
In order to be successful, any emerging cryptocurrency investor needs to make sure that they are equipped with the latest knowledge and the latest updates in this rapidly growing market.
