Will Bitcoin or Altcoins Save Investors From Macroeconomic Downturns?

By dan saada May 21, 2019 Off

AMD has been releasing a more powerful graphics card suitable for GPU cryptocurrency mining.  Nvidia was under the assumption that the cryptocurrency market will never rebound.  However, AMD was preparing for the next bullish cycle in the cryptocurrency market. The current price rally is a clear indication for AMD to be poised for a leg up in price.

Investors have been recently flocking to Bitcoin and cryptocurrencies.  This is evident in the recent price action of Bitcoin.

Hartnett opines, when it comes to the investor’s appetite for Bitcoin, the interest is due to the high-risk and high-reward investment strategy.  The low-interest rate on the bonds yields unfolded eroded profits during the recession period in 2008.

Investors have been forced to take to a greedy trading strategy.  This, in turn, has triggered investors to start aggressively trading cryptocurrency.  This they did in the hopes of capitalizing on the next Bull Run in the market.

Hartnett also felt that investors are currently investing a lot in cryptocurrencies like Bitcoin as they are supposedly trying to save themselves from the impending economic recession.  This they do in the hope that the crypto will protect them from macroeconomic downturns.

In a Dystopian market, the price of the Bitcoin made a lot of sense.  

“We have long been skeptical of cryptocurrencies’ value in most environments other than a dystopian one characterized by a loss of faith in all major reserve assets (dollar, euro, yen, gold) and the payments system.”

With the trade war happening between the US and China, there is uncertainty in the market.  The effects are yet to unfold in the market.

Investors are now of the opinion with the right trading strategy; there are opportunities for building wealth with Bitcoin and cryptocurrencies.  There are going to be ups and downs, huge gains, retracement, new rally; the value seems to be strengthening for the tokens uniquely.

The cryptocurrency market has incredible potential.  There are barriers to investment despite the Bitcoin Exchange being easy enough for everyone.  The boom and bust cycles are regular norms for the cryptocurrency market.

While it seems that the prospects for raising profits in the market are excellent, it is not easy to sell cryptocurrencies very quickly.  There are methods to make the most out of profit potential. Profiting from falling prices and getting out of trades is not as easy. In cryptocurrency futures trading investors can trade up to 100 X in leverage on their account deposits.