The value of cryptocurrencies goes through extreme ups and downs and it makes no sense to invest in them when they trade at such extreme prices. For most people, cryptocurrencies are used in order to speculate on the price movements and the risks they entail. Thus, even if the price rises a little bit, it won’t go through such highs that will make it difficult to earn an income and buy a house.
The cryptocurrency mining industry is developing and the cost of electricity and computing power continues to drop. The demand for electricity, which has increased exponentially from 2010, is expected to continue growing exponentially in the near future. This means that it is bound to become increasingly expensive for miners to run their mining operations and therefore, the price of bitcoin and other cryptocurrencies will have to come down. This will make it possible for these cryptocurrencies to reach mainstream consumption and will make the industry sustainable. However, in order to do so, the price of bitcoin and other cryptocurrencies has to get lower and eventually the market will balance itself out with the emergence of cryptocurrencies other than bitcoin that are far cheaper to operate and acquire.
While there is a strong correlation between the price of bitcoin and its future profitability, it is clear that the price of bitcoin will be affected by a range of factors including the developments in the cryptocurrency industry and various economic trends. As the adoption of the technology behind cryptocurrencies grows, so too will the market price of bitcoin.
It is clear that the cryptocurrency industry is undergoing rapid growth and development and it is imperative for the ecosystem to be mature enough for any emerging cryptocurrency to thrive.
The crypto market is a world of winners and losers. According to companies like SoFi, there are a number of cryptocurrencies that have a more positive outlook than other cryptocurrencies, while others are very bearish on the market. Some of these are as follows:
NEM (NEM): The most widely traded cryptocurrency that is aimed at enterprise-based companies and its value is more like that of gold. There is a high growth rate in the number of merchants using NEM. It is one of the most liquid cryptocurrencies and it also has a low market cap.
IOTA (IOTA): One of the most promising cryptocurrencies in the emerging market. It has the highest adoption rate and high volatility rate of the cryptocurrencies, which makes it one of the most promising. The developers of IOTA are working hard to add more advanced and exciting features to the blockchain which will benefit its users. It has a wide network effect that allows IOTA to take over any cryptocurrency, if it gets adopted by a significant number of users and merchants. Lisk (Lisk): A Decentralized Application (DApp) that promises to build a decentralized blockchain network for smart contracts. The network has been in development for quite some time now and it is just in the final testing phase. There are many developers in the Lisk community who have written many successful apps and Lisk is one of the most famous ones. NXT (NXT): An open source blockchain platform with zero-knowledge
