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As the price of the bitcoin passes $16,000 in November 2020, the conversation with the Cryptocurrencies and the bitcoin is heating again. New traders and investors are entering the market to make a profit out of trend marketing.
Introduction
Investors and traders are now seeing Bitcoin as a long extreme asset instead of a short term portfolio of a hedge against inflation. Some of the investors believe that it is the Digital god that will remain in the market for decades to come.
There has been evidence that Bitcoin is being used as a play to fight against the Dollars’ dropping price in the market. In November 2020, investors have been flocking around Bitcoin and shifting their assets to digital assets to avoid dollar inflation.
During the 2017 mania, the market price of the Bitcoin reached the market of $20K. This created an uproar in the market. This successful rally resulted in tripling the total market cap of the Cryptocurrency.
The Cryptocurrency future is very bright. Developers are trying their best to come with the best programs to provide a safe environment for the Crypto transaction. To some extent, they have been successful. bitcoin digital is one such platform that has double layer security protection and helps its users secure trade and transactions.
Why Is Crypto Here To Stay?
Professional Crypto trading experts believe that it will be very hard for the other asset to compete with Bitcoin and other Cryptocurrencies. The reason is that we have more ease of access than it has been before. This might act as a pillar to support the constant bullish run of Bitcoin.
If we compare the 2017 and 2020 successful rallies, 2020 has a better chance to carry the rally for a longer period due to ease of access.
Due to the lack of secure platforms and half-baked wallets, it was really hard to leave all your assets unattended. This is the reason why, after the price hike, people never intended to invest in Bitcoin. But this time, it is different. Today, we have some of the best trading platforms and some of the most secure Digital Wallets.
What’s more, since then, Bitcoin and other cryptocurrencies have evolved in many ways. For instance, Bitcoin has forked into Bitcoin Cash, and Ethereum has evolved into Ethereum 2.0
- Bitcoin Cash: Bitcoin Cash is an evolved version of Bitcoin that works on its own Blockchain network. The sole purpose of Bitcoin Cash was to provide the user with a lightning-fast Bitcoin transfer. The set of the code has remained the same for the Bitcoin cash. However, developers have added some new sets of code to make the necessary changes.
- Ethereum 2.0: Ethereum 2.0 is an upgraded version of Ethereum. With Ethereum 2.0, you will see a boost in scalability and efficiency. Here, the data are authenticated with the help of “Proof of Stake”.
This new evolution of the major Cryptocurrencies shows that the industry has not lost their hope in decentralized currency. Instead, they are working on developing new and more secure currencies.
Which One Is Better: CFDs Or Crypto?
When you are trading with a platform with high liquidity features, Crypto platforms suffer a lot due to the market’s high volatility. Hence, CFDs help traders and investors with secure trades. Not only that, your assets are secure with CFDs.
The best thing with CFDs is that you don’t actually have to worry about buying real Crypto. Some of the central governments have found that Cryptocurrencies can help to boost the financial economy, and hence, they are trying their best to find the best way to regulate. This is the reason why you have to go through bureaucracy to enter the market.
However, with this process, you lose anonymity, the major advantage of dealing with Cryptocurrencies.
Final Thoughts
As it was in 2010 to 2017, Bitcoin is the best performing asset class in 2020. And the best part this time around is that the Crypto environment is favorable, and hence, society might actually accept Cryptocurrency.
