Since the inception of Bitcoin, it has been a point of debate among users and non-users. With time it has seen the tremendous value increase, yet experts and users await one more increase. It may be seen in the coming days ahead now. Bitcoin is struggling to hold above the $12000 mark, and investors are eagerly waiting for breakthroughs in the markets. However, the good news is that the market cap has crossed $386.4 billion. This level was last seen only in 2018.
There are many reasons for the slow growth in this field. The lack of regulatory guidelines is the main factor stopping big investments from coming into this market. Apart from that, the investor perception about cryptocurrencies, in general, is still not so positive, and this is also leading to a lack of retail participation in the markets.
Experts believe that there will be ups and downs in the price as markets turn volatile due to various reasons. However, there is good potential in the long run. Yet another factor that is stopping the regular retail investors from getting into active trading in cryptocurrencies is the sharp spikes that are regularly seen in this market.
Due to the ongoing coronavirus pandemic, the governments have issued various stimulus packages, and this has contributed to the decline in dollar value. The US dollar index currently stands at 93.2. The social tensions that arise due to a slow economy have forced the governments to print dollars in order to find temporary solutions. This has forced veteran investors like Warren Buffett to stay away from banking and financial stocks.
Even though the performance of BTC is not up to the expected mark, other cryptocurrencies have had good growth this year. The ETH has grown from $105 to $440 since March, and investors have made a lot of money with this asset. In the same manner, Ripple and Dash are also performing well when compared to other assets in the market.
The future of Bitcoin and other cryptocurrencies look bright as we are heading into a high inflation market, which can be seen shortly. In this situation, many people will look towards assets that can tackle inflation in the long run. However, access to digital wallets has to be eased in many countries in order to get a large number of retail investors in the future.