Will Cryptocurrency Stabilize? - Important Things To Know
It is a fact that you can really make money with cryptocurrency. But on the other hand, there is also a fact that it is not stable in value or price. It can attract inventors this year, but next year it could be a flop. So technically, you are gambling in trading cryptocurrency. But will cryptocurrency stabilize? This is an interesting topic, and we bet you are curious too. Luckily, this is what you will find out after reading this article.
The Negative Side of Cryptocurrency
We can’t help but get so curious when will bitcoin stabilize. But are we really ready for it? Perhaps many of us wanted to try this because of the alluring advertisement. Indeed, it is something to try because our economy is slowly turning digital. The transactions that we make are now more virtually, which is really different from before. But let us talk about first the negative side of the cryptocurrency. The information below will help you decide whether you want to take the risk or withdraw.
- A growing number of hackers. Criminality happens everywhere. And if you think you are safe in the digital world, just think about those individuals grieving for their robbed money. The bad news is that the number of hackers is growing, and they keep getting better, which is why they remain a threat to your assets. The problem with them is that you don't know when you are the target and don't know when they take your money. That's how fast they are. If you have watched the action movies like the mission impossible or oceans eight, you'll see how the human mind can think of different ways to steal an object or account instantly without being discovered.
- It is not stable. You cannot control the volume of the trade. You cannot say if the exchange rate is high or low or when the cryptocurrency value will rise from its former value. This is the reality that every investor like you should consider. There are times when you have to hold your asset to make a profit on the next exchange. So if you want to liquidate your asset in case of an emergency, there is no guarantee of selling it and gaining profit.
- It is decentralized. The fact that it is decentralized means it is not being regulated by a bank or the government. This means it relies on technology, the number of investors, developers, and crypto communities. If one of these is taken away from the equation, there will be a huge impact on the circulation. It works well if a huge number of the population use it, but if a new concept is introduced, which is better than this, the people will surely switch to that. And that would mean the fall of the cryptocurrency.
- Cryptocurrency works because of technology. This means not all regions of a country can keep up. As we all know, there are parts of our world untouched by technology. Meaning the trade isn’t popular in that area.
But will cryptocurrency stabilize? Learn the answer below.
If the Security Design Will Be Improved
So will cryptocurrency stabilize? It depends if its security design will be improved. Like in reality, some people choose to make easy money by doing things unadvised. Examples of this are fraud and hacking issues. As long as they exist and the security isn't that strong, there is no guarantee if it will stabilize. But in the meantime, you can either use a hot or cold wallet to secure your cryptocurrency from them.
If it Will not be Replaced
Replacement is another reason to study if will cryptocurrency stabilize. Admit it, or not many of us are obsessed with trying new concepts. This also applies to cryptocurrency. Not because it is booming means it will continue to boom in the following years. It will only stabilize if there is no replacement. But like we all know, life is full of surprises. If another mode of the virtual transaction will be invented and can surpass the cryptocurrency's capability, it would be the end of it. And you cannot stop that from happening because the human mind is too complex. There are things that we never thought of, but other people can make it happen.
If You Can End the Volatility
This is the main reason why the cryptocurrency isn't stable. If the price moves all the time, it will be hard to stabilize it. And mind you, given that we cannot hold or read other’s minds, it would be hard to predict when the trade will be high or low. This is the reason why the price or value change. Not unless all people will agree to fix the value of the currency. But of course, with the huge population in this world, you would take time to do that.
There is an opportunity in cryptocurrency. And we are not talking about small profit here but huge money if you get good at playing with it and taking risks. And now that we’ve answered your question about if will cryptocurrency stabilize, you know your standard in the future. Just remember, if you don't take the risk, you will not gain. Fear is our ultimate enemy. It will make us overthink and hesitate. But we only live once, so go find your luck and see what it offers for you! Find out more about cryptocurrency here!
UPDATED April 4, 2021
By: Lance Richards
The traditional and established foreign exchange and stock markets have found a newcomer in the trade: cryptocurrency.