Most Popular
1. Dow Max Drawdown Bear Stock Market 2022 - Accumulating Deviations from the Highs - 21st Feb 22
2.Putin Starts WW3 in Ukraine, Will Use Tactical Nuclear Weapons, China Prepares Taiwan Blitzkrieg - 28th Feb 22
3.World War 3 Phase 1 - Putin WINS Ukraine War! - 25th Feb 22
5.Will There Be A 2024 US Presidential Election? - 3rd Mar 22
6.Gold and SIlver, Precious Metals Sector Is at a Terrific Buy Spot - 6th Feb 22
7.Why Putin Wants the WHOLE of Ukraine - World War 3 Untended Consequences - 6th Feb 22
8.Dow Stock Market Expected Max Drawdown 2022 - 19th Feb 22
9.Stock Market Calm In the Eye of the Inflation Storm - 4th Mar 22
10.M = F - Everything is Waving! Stock Market Forward Guidance - 7th Mar 22
Last 7 days
Why APPLE Could CRASH the Stock Market! - 21st May 22
Why Is Crude Oil Ignoring US Inventories? - 21st May 22
Here is Why I’m Still Bullish on Gold Mining Stocks - 21st May 22
US Real Estate Investors – Is There An End In Sight? - 20th May 22
How Technology Affected the Gaming Industry - 20th May 22
How To Set And Achieve Reasonable Goals For Your Company - 20th May 22
How Low Could the Amazon (AMZN) Stock Price Fall? - 19th May 22
Bitten by FANG? Clocked by Cryptos? -- 'Air Pockets' Everywhere - 19th May 22
Northern General Hospital Orthopedics Fractures and and Ankle Clinic Consultations Real Patient Experience - 19th May 22
Cathie Wood Goes All in on Teladoc, ARKK INSANE Noob Investing Strategy! - 17th May 22
This is Anything but Positive for US Housing Market - 17th May 22
What Should We Do If There Is No Fed Monetary Policy Pivot? - 17th May 22
All Possible Ways to Earn Free Litecoin - 17th May 22
How low Could the Amazon Stock Price Fall? - 16th May 22
Cathy Wood ARKK INSANITY There is NO Coming Back! - 16th May 22
NASDAQ 100 Stock Market LOWER LOWS & LOWER HIGH - 16th May 22
Sanctions, trade wars worsen US inflation - 16th May 22
AI Tech Stocks Earnings BloodBath Buying Opportunity - 14th May 22
Futures Contract – Trading Crude Oil With USO - 14th May 22
How to Get Kaspersky Internet Security for 80% Discount! Do not Pay Renewal Price! - 14th May 22
Sagittarius A* Super Massive Black Hole Monster at Centre of Our Galaxy REVEALED! - 14th May 22
UK Public Debt Smoking Inflation Gun - 13th May 22
What Happens When the Stock Market Dip Keeps Dipping? - 13th May 22
Biden Seeks Inflation Scapegoats; Gold Advocate Wins GOP Primary - 13th May 22
Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - 12th May 22
The War on Gold Ensures the Dollar’s Downfall - 12th May 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Can Cryptocurrency Become Less Volatile for the Masses Who Don't Invest Yet?

Currencies / cryptocurrency Nov 02, 2021 - 05:18 PM GMT

By: S_N_Chatterjee


Whether or not you are related to the finance world, you are bound to know or at least have heard about cryptocurrency. Cryptocurrencies are a type of e-currency or digital assets in which you can invest. However, the concept of e-currency is still quite new to the general mass. It can easily intimidate an individual and might be a big risk if you are not aware of what you are doing or where you are investing.

Despite that, many investors continue showing interest in cryptocurrency, which brings up the question— will cryptocurrency ever become less volatile for the mass? In this article, we will take our time to find an answer to that question. If you are ready, let us start right away!

Is it too big of a risk?

Ever since Tesla revealed that it had bought bitcoins worth $1.5 billion, the net worth of cryptocurrency hit the roof, making it its highest recorded market value of more than $800 billion. 

Obviously, investors were on the run to have their share of investment in this new hot-topic of the market. However, for the average mass, though there was an interest, the risks were too high.

The reason is, bitcoin, or cryptocurrency in general, is an investment that is too volatile and too risky. History stands proof of that statement because there were instances where the price of bitcoin would go up rapidly, only to come crashing down soon.

Therefore, though it can give you major returns, it can also incur huge losses. As such, many investors liken investing in bitcoin to gambling. One should invest an amount that one can afford to lose. Therefore, while investing in bitcoin or any other cryptocurrency for that matter, you need to be mentally and financially prepared to earn great returns, as well as lose them really quickly.

Will the average mass be able to invest in cryptocurrency?

While cryptocurrencies are volatile, the fact that it is gaining more interest and popularity is not fading any time soon. The market is continuously evolving, and you can expect only good things for cryptocurrencies. Hence, the world as a whole is coming up with ways and reasons to make cryptocurrency a more accessible means of investment for the average folk. Here are a few major reasons why:

Gold-backed cryptocurrency

Recently, gold-backed cryptocurrencies were launched by Dignity Gold as DIGau Crypto. These cryptocurrencies are priced at the value of gold, which makes them less volatile and more dependable. This can be a great way for average investors to invest in cryptocurrencies without the vigorous uncertainty of it.

Regulation of cryptocurrency rules

Due to the rising popularity of cryptocurrencies and their consequent uncertainty and risks, major authorities around the globe are continuing their discussions of regulating cryptocurrency to ensure safety and reduce the chance of cybercrime and damage.

Major law authorities around the globe, including those of Washington D.C and more, are in talks to understand and figure out ways to create laws for cryptocurrency trading so that it becomes safer for investors. This will help investors have better and clear ways of reporting their cryptocurrency transactions.

Big corporations adopting cryptocurrencies

From PayPal, AMC, and Square to,  of course, Tesla — all of the major corporations around the world have been taking great interest in cryptocurrencies, with some even openly investing and accepting payments in the form of cryptocurrencies.

This will greatly affect the confidence of the average investors to further invest in cryptocurrencies. The more standardized the use of cryptocurrency gets, the more its price will increase. Hence, cryptocurrencies will become ideal for long-term investment while getting less volatile.

ETF approval for cryptocurrency

ETFs or Exchange Traded Funds are investment funds that track the worth of an underwritten asset or index. Similarly, cryptocurrency ETFs will track the worth of a cryptocurrency and will enable one to trade in traditional markets instead of cryptocurrency agencies.

Having an ETF approval of cryptocurrency will help people invest in it more conveniently. This will open up new opportunities for the average mass and will give them more ways to get involved in this event.

There already has been a major development in this scene as the very first Bitcoin ETF was introduced in the New York Stock Exchange (NYSE) very recently.

By S N Chatterjee

Copyright 2021 © S N Chatterjee - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in