The global financial markets were ready for some serious disruption. The time was ripe. And Bitcoin, with a fascinating underlying technology, was introduced in late 2009. While there were no “flash-and-bang” moments signaling the arrival of this revolutionary new form of currency, it was a technology so dynamic in scope and capabilities, that it was only a matter of time before it was lapped up. The surge in interest in Bitcoin and the burgeoning of alternative coins, or “altcoins,” was a sign of bigger things to come. We are witnessing a frenzy of sorts. Welcome to Financial Markets 2.0. On steroids.
Crypto market capitalization: A case for comprehensive disruption
The reasons behind the “coin craze” are manifold and most of them, justifiable. To put things into perspective, get this. The total market cap of all cryptocurrencies in January 2016 was around $7 billion. By end of 2017, within just 2 years, the crypto market cap had increased to a whopping $572 billion. This corresponds to a percent rise of more than 8000%. Compare this with the world’s most valuable company, Apple whose total market cap in 2016 was $600 billion, and it rose by 25% to stand at $754 billion by 2017. While the market cap of a single company — Apple — is still greater than the entire market cap of cryptocurrencies, but the phenomenal, and sometimes unbelievable, rise in value can signal the coming of a fascinating future for cryptocurrencies.
The acute volatility of the crypto markets means that a lot of market cap gained in 2017 was lost within the first couple of months of 2018. Current market cap stands at $257 billion, a loss of almost 45% valuation. Extremely market volatility has been the hallmark of the crypto markets since the last couple of years owing to speculation, indecisive governmental policies regarding cryptocurrencies and apprehensions and opposition of traditional financial institutions against wholesale disruption. But while many traditionalists call cryptocurrencies a bubble, crypto experts call them “the pin that will burst the bubble!”
Bears rule, but for how long?
The apparent decrease in value of cryptocurrencies is not present across the spectrum, though. While major coins like Bitcoin and Ethereum may see a decrease and a seemingly bearish trend, there are still many altcoins that are in the green and are slowly rising above support marks and over reversal zones. The market is also weeding out non-performers which will send strong signals to new enterprises to introduce only those coins and tokens that have real value. This might also affect the market cap a bit.
Even in this bearish phase, major coins are holding on to their lower supports. This augurs well for the crypto markets as they battle a fresh round of governmental approvals and policies that protect investor interest. This will eventually attract many investors to pump in some serious revenue influx and a whole lot of confidence. The blockchain industry is slated to grow at a CAGR of around 51% which is a clear sign that crypto coins and tokens will eventually rule.
Trust experts to invest your money in crypto
In such a frenzied market, it is best to invest cautiously using expertise from people who have been there and done that. At Pecunio, our team has had the experience of managing funds worth millions of dollars and also possess the expertise of working with alternative assets. Pecunio is your one-stop shop for all your crypto investments. With multiple investment instruments, we demystify crypto investments and also solve the problem of crypto spending for all individuals — from the non-technical layperson to the high net-worth and tech-savvy investor.
That crypto markets possess a lot of potential is a foregone conclusion. But how investors can ride this exciting wave of endless opportunities will decide whether they make a fortune or lose money. Getting expert help from people like Team Pecunio makes sense in creating long term value form crypto investments.