The hype over cryptocurrencies is increasing more and more, and while the year 2023 was challenging for the crypto market as it was for all other industries, we can see that some cryptocurrencies became much more valuable by the end of it. When it comes to 2023, we expect that the trend of increased value will continue for some coins, especially the most popular ones like Bitcoin, Ether, and Ripple. Moreover, we have to mention the raised awareness of people related to the real benefits of blockchain technology which significantly increased popularity.
Moreover, there is also a rise of companies that started to accept digital currencies, along with a higher number of available ATMs where you can simply convert crypto into fiat currencies. On the other side, mining is losing its popularity since the profit is getting lower over time, especially when it comes to Bitcoin. However, many people are interested in trading because of the high volatility of most virtual assets. Trading is not a complicated process, and you could become successful only with basic knowledge related to blockchain, e-wallets, and the current situation on the market. Also, you can use a smartphone app to get information about the most recent changes all the time.
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The Rise of Bitcoin
The first blockchain was under many ups and downs since it got introduced more than 10 years ago. Until the end of 2023, the highest value of Bitcoin was around $19,000 back in 2017. However, it quickly started to lose its value in the following years, reaching the lowest price of only around $4,000 in the first quarter of 2023. However, it started recovering, and we can see some new records by the end of the year and in 2023. The current price is around $35,000 which is a new record, and various factors made this cryptocurrency so valuable.
Since the last year was so problematic for all sorts of businesses, a lot of people became interested in finding an alternative way to protect their assets. Therefore, it is not a surprise that many of them would choose blockchain currencies, especially those which are decentralized, like Bitcoin. Also, according to various studies, there is a high chance that the world will suffer from another recession that might be even worse than those in 2009. That could lead to the crash of the stock market, which can further lead to decreased value of fiat currencies, the bankruptcy of people who keep their assets in bonds, inflation, increased bank interests, and many other issues.
Choosing to invest in Bitcoin might be the right solution to protect your funds in the following years. The whole world is still struggling with the issues brought by the pandemic and lockdown measures. In that matter, the situation in the market in many countries is not so stable anymore. Nevertheless, many studies are stating how the value of Bitcoin might reach over $100,000 by the end of the year. Also, the situation on the market is quite different than it was a few years ago when its value quickly fell after the peak price. The current situation on the global market might affect the value to indeed become much higher and more stable in the future.
What About Other Cryptocurrencies?
While Bitcoin is the most popular one, there are many other types with great potential to become more valuable over time. There are over 2,000 types available in the market today, but only some of them have the potential to attract more investors and become used as a standard way of payment.
While being significantly less valuable than Bitcoin, Ethereum is also one of the most popular choices for a long time. Also, it brings some unique benefits with its feature called smart contracts, which can improve the business models of many companies by allowing them to have better communication with partners over online platforms. This type of digital currency also became valuable, and its current price is over $1,000.
The main advantage of Litecoin when compared to other coins are faster transactions. Also, this type of asset is excellent for people who are interested in mining, since it is one of the rare coins that are still profitable to be mined at home. Also, we have to mention that its current price of around $140 represents a great surprise for many investors and experts in this field because most of them projected it to reach that value after 2025. The higher levels of security are even better than Bitcoin and Ether might represent another factor that can lead to an even higher price.
The main difference between Ripple and most other cryptocurrencies is that this one already collaborates with banks and other official financial institutions at some level. The main issue with much digital currency is related to the fact that they are decentralized, which might lead to a ban in some countries. However, XRP is transparent and allows official financial structures to include taxes in the transactions. That might lead to a much higher price of this virtual currency in the future.
The Bottom Line
Before you choose where to invest your money, be sure to learn more about the market and all of the factors that might cause increased or decreased value. As we already mentioned, one of the main reasons that affected such a rise in prices of many cryptocurrencies is related to current challenges caused by the pandemic. We can hear all kinds of forecasts related to the future of blockchain technology, but they will certainly become more present over time.
When people start using their e-wallets as a standard payment in grocery stores, online shops, and more, the price will become much more stable. That leads to the fact that this is maybe the best time to invest in the cryptocurrencies. Nevertheless, you should research the market more often and try to choose the best type of digital asset for your investment.