Experts list reasons for bitcoin's continued growth

Experts list reasons for bitcoin's continued growth

Over the past 12 months, bitcoin prices have risen almost 4.5 times. In April, the price of the coin hit a historic high near $65,000. On whether it is too late to buy bitcoin, and what are the prerequisites for it to continue to grow, told RBC, citing its experts.

WHAT IS HOLDING BACK THE GROWTH OF THE CRYPTO MARKET

The cryptocurrency market is currently at an early, early stage. This was told by Maria Stankevich, development director of EXMO cryptocurrency exchange. According to her, cryptoeconomics as a whole is starting to develop, the market still lacks regulation and infrastructure. The growth of the industry is also constrained by:

High energy costs: expensive electricity and computing power;
Lack of legislative framework. Lack of a unified way of state regulation of the sphere, international norms and practices;
Lack of blockchain specialists of the required level;
Inertia of big players. Large companies, international banks continue to use SWIFT, VISA, American Express and familiar banking services.
WHAT GROWTH SPACE DOES THE CRYPTO MARKET HAVE

The crypto market is now capitalised at $2 trillion, the gold market at around $12-13 trillion, the stock market at $80 trillion, and with all derivatives, another $20-30 trillion. This was said by Vladimir Smetanin, CEO of the Swiss financial company Newcent. According to his calculations, the cryptocurrency market is now less than 2% of the total capital market. At the same time, there are many prospects for digitalization.


"At least 5-6% of the crypto market should eventually take over. And if it does, then here we are at double, triple the current volumes," predicts the specialist.

IS IT TOO LATE TO BUY CRYPTOCURRENCY?

CEO of online shop of equipment for mining and computer components Hardvar.ru Ivan Sharov believes that it's not too late to buy bitcoins and altcoins, but only if we consider long-term investments (3-5 years).

He said that now institutional investors and large funds buy cryptocurrencies and their investments give the market a growth stimulus. At the same time, the specialist warned that it is not the best time for short-term investments because the crypto market is extremely volatile, although it has prospects for growth and renewal of historic highs.

Stankiewicz added that large investors and funds are expressing confidence in the crypto market. After all, cryptocurrencies are backed by financial institutions, exchanges, exchanges and miners. And the more actively the infrastructure develops, the faster the bitcoin exchange rate will rise, the expert said.

The CEO of Newcent also agreed that it is not too late to buy bitcoin. He compared the cryptocurrency to Apple, Amazon or Microsoft, which are actively growing in value. Smetanin concluded that there is great demand for cryptocurrencies right now and the market is still at the beginning of its journey.

The material is taken from public sources. Opinions of the experts mentioned in it may not coincide with the position of the editorial board. "Prime" does not give investment advice, the material is published for introductory purposes. Cryptocurrency is a risky asset and may lead to losses.

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