Crypto-currency market to rise again, but in an uncertain future
Cryptocurrencies have risen by over 400% this year, making them the most popular investment and speculation asset class in the world.
The meteoric rise of cryptocurrencies has been attributed to a combination of factors including China’s aggressive move to regulate the virtual currency market, a growing number of new ICOs, and the rise of blockchain technologies.
The rise of digital currencies is a phenomenon that has attracted a lot of attention from the financial sector.
There are many factors that are impacting the value of digital assets, but a new report from the research firm BNP Paribas predicts that the cryptocurrencies will remain a stable and lucrative investment.
According to the report, digital currencies are becoming a popular investment asset class because they are more than just a new form of money.
“Cryptocurrencies are now widely used as a hedge against speculative and volatility risks, especially in China.
“These cryptocurrencies are also more diversified, with a greater amount of assets than the traditional assets and can be diversified in ways that are not always possible with traditional assets.” “
Digital assets are now more accessible to people across the globe, including in developing economies, and they are seen as a more stable investment compared to traditional assets,” says BNP CEO and co-founder, Dr. David Wozniak.
“These cryptocurrencies are also more diversified, with a greater amount of assets than the traditional assets and can be diversified in ways that are not always possible with traditional assets.”
As cryptocurrencies have gained traction, there are several new investment models available for those looking to invest in the sector.
The top three cryptocurrencies are Ethereum, Bitcoin, and Litecoin.
Ethereum is the most widely used cryptocurrency in the cryptocurrency market, accounting for more than $300 billion in assets in 2016.
Ethereum has a market capitalization of more than US$6.8 trillion.
Bitcoin is the second most popular cryptocurrency, and it is valued at $4.7 trillion.
Litecoin is a relatively new cryptocurrency, with an estimated value of just under $3 trillion.
Ethereum and Bitcoin are currently the two most popular cryptocurrencies for investors.
However, the report says that the crypto-currency space is still in its infancy, and there is still a lot to be done before cryptocurrencies are considered a stable investment asset.
According a recent report from BNP, cryptocurrencies are now a popular investing asset class due to their relatively new nature.
“While it is possible to diversify investments in traditional assets, many people do not have the time to invest their time in the crypto space.
There is no reason why investors would not choose to invest with cryptocurrencies instead of traditional assets like stocks or bonds,” says Dr. Wozny.
“A growing number (of crypto-investors) are also interested in buying crypto-currencies as a way to diversified portfolios.”
Cryptocurrency investments have been gaining traction in recent years, particularly among institutional investors.
This can be seen in the increase in ICOs and new crypto-asset offerings.
“Although cryptocurrencies are currently valued at less than US $6.9 trillion, the market cap is more than double that of traditional financial assets, which have a market cap of US $3.3 trillion, according to Bloomberg.”
The report predicts that crypto-assets will remain in a stable position, with the potential to grow by another 400% in the next five years.
It also predicts that cryptocurrency investors will spend around US$1 trillion on digital assets by 2020.
“The crypto market is currently one of the most speculative and volatile investment markets in the global economy, with only one cryptocurrency currently trading above $1 trillion.
It remains to be seen whether digital assets will remain stable as long as the bitcoin, ether, and litecoin price levels remain above the $100 mark,” says the BNP report.
According the report from a recent BNP survey, more than one in five people are willing to pay more than a US$500 investment in cryptocurrencies.
However the report does not offer a forecast for how long cryptocurrencies will stay stable.
“Despite the volatility of crypto markets, digital assets remain a very attractive investment, and investors can enjoy their gains over time,” says David Wuzniak, BNP Co-founder.
“As a result, the value for cryptocurrencies is expected to continue to rise, and we believe this will continue to be the case until it becomes more affordable and mainstream.”
For more information about crypto-trading, consult BNP’s Crypto Trading Report.