A lot of mainstream companies have taken an interest in cryptocurrencies and blockchains this 2021. Aside from curiosity, a lot of companies are also starting to invest in cryptocurrencies themselves. Finance tech companies like Visa and Paypal are now starting to bet on cryptocurrencies by making them available on their platforms for users to buy. On the other hand, Tesla is going hot and cold when it comes to its acceptance of Bitcoin as a mode of payment for their products and services, despite them holding billions worth of crypto assets.
As cryptocurrencies continue to grow and become more popular, many experts believe that there will be more buy-ins in the future and that they will be the driving factors for the growth of crypto in the future.
There are even predictions that soon, some of the bigger and global corporations could help boost the wider adoption of crypto in the latter half of the year. If a massive retailer like Amazon or one of the big mainstream banks decides to get involved in crypto, it can create a huge chain reaction and urge more companies to start accepting crypto. Investments from large companies would also add to cryptocurrency’s credibility and strengthen its reputation.
Amazon has recently been in the news for sparking rumours by sharing a job posting looking for a “digital currency and blockchain product lead.” Even Walmart is looking to recruit experts on cryptocurrency to manage its blockchain strategy.
Institutional adoption and what it means for investors
At present, there aren’t many cases for people to start paying for everything in cryptocurrencies. But as more and more retailers start accepting digital currencies as payment methods, this stance may change in the future. It might take a long while before cryptocurrencies can be used to spend on products or services. Still, wider institutional adoption can allow everyday users to be incentivised to use crypto as payment in the future. Once cryptocurrencies start being used in everyday scenarios, they can have significant impacts on the prices.
Nothing is for sure yet, but if you are looking to buy cryptocurrencies as a store of value, it is likely to increase in value and demand the more it is used in everyday life.
And if you believe that Bitcoin or cryptocurrencies, in general, are the way of the future, then it can be a good idea to invest in it.
The future of Bitcoin
Being the largest and most established cryptocurrency, Bitcoin is an ideal indicator for the cryptocurrency market since it can sway the rest of the market to follow its trends.
The prices for Bitcoin have varied quite a lot this current year, reaching its highest at 60,000 dollars in April and shooting down to 30,000 dollars in July. At present, Bitcoin prices have risen to 50,00 dollars. The considerable gaps in prices due to volatility are the reason why experts often recommend that you keep your cryptocurrency investments to no more than 5% of your investment portfolio.
But even after reaching a high of 60,000, there are still questions of exactly how high Bitcoin can go.
Experts like to look at Bitcoin’s history to get clues as to which direction Bitcoin is heading. It is believed that the volatility that the market is currently experiencing is likely to give way to long-term growth. On the other hand, there are also predictions where experts believe that prices will continue to skyrocket and might even reach 75,000 dollars.
The volatility inherent in Bitcoin is even more reason for investors to develop strategies suited for the long term. Once you have made up your mind that you will be investing for the long term, the price swings in the short term will start to upset you less. It could also help to employ the “set it and forget it” method. Reacting to every price swing does not bode well for your investments since making decisions based on your feelings can make you act rashly and make decisions that could cost you your investment.
Cryptocurrencies can be treated as long-term investments that can help diversify your investment portfolio. Start today by visiting this trusted cryptocurrency trading platform that has the right tools to help you out.
We can keep speculating about the eventual value that cryptocurrencies will be having in the next coming months and in the years to come. However, at the moment, it is still a relatively new investment that has too short a track record to base predictions on. This is why it is always wise to invest an amount that you’re comfortable with losing and invest in more traditional assets to build a solid portfolio.
In the case that something happens and cryptocurrencies are suddenly banned, then at least you would be fine. Keep your crypto investments small and prioritise your other financial goals and saving up for retirement.