If you haven’t yet dabbled in cryptocurrency, you may be wondering if it’s too late to get started. Of course, the answer is no.
Although it would have been preferable to get in around 2014 or earlier, it is not too late now. Here are a few of the reasons for this.
BITCOIN HALVING CYCLE IS NOT COMPLETE YET
Because of the decreasing issuance of new BTC, many in the industry believe that Bitcoin’s halving cycles have a compelling link to the price. Bitcoin stock-to-flow is a popular model that uses halving cycles to predict future price movements with astonishing accuracy.
The model predicts a six-figure BTC price by the end of 2021, based on the current halving cycle. The model has been put to the test in recent bearish markets, but it has held up well.
The Bitcoin stock-to-flow cross-asset model accomplishes the same goal with the same level of accuracy as the previous model, but it is even more ambitious in its price predictions. BTC prices could reach $260,000 or more, according to this model.
Predicting the future is always dangerous, but history shows that this halving cycle is far from over.
ALTCOINS EXPERIMENTING
Although Bitcoin has been trading sideways in recent months, altcoins are having a moment in the spotlight. Many platform tokens, in particular, experienced massive growth in 2021 as projects that had been in development for years finally launched mainnets.
Polygon’s MATIC token, for example, soared into the top 20 cryptocurrencies in April after a flurry of adoption news. The ADA and SOL tokens from Cardano and Solana have recently experienced unprecedented rallies, with year-to-date gains of over 1,500 percent and 8,000 percent, respectively.
BETTER RETURNS CRYPTO HOLDINGS
Unlike in the early days of crypto, the digital asset space now has a thriving financial infrastructure to support it. This provides many more opportunities for holders to earn returns on their cryptocurrency investments.
Active traders now have access to a variety of regulated, secure trading platforms, while passive investors can profit from staking or lending. DeFi’s interest-earning liquidity and lending pools are available to those who are willing to take on a little more risk. Regardless of which option you choose, you’ll always get a higher interest rate than if you kept fiat in a bank account.
DEFI SCENE OF BURGEONING
On the subject of DeFi, another area of crypto where the party is just getting started is the Cambrian explosion in decentralized finance. Not only is the value of the funds locked in DeFi skyrocketing, but money is pouring into the space at an unprecedented rate.
Now, it appears that institutional participation will be the next step in DeFi. If this is the start of an institutional love affair with DeFi, we can expect to hear a lot more about it in the future, as well as more investment.
THE NFTS GETTING STARTED
When you see the headline-grabbing sums changing hands for pixelated artwork or cartoon cats, it’s easy to be skeptical of NFTs. But, if you look past the hype, NFTs are generating so much interest because they’re a new technology with a lot of promise.
NFTs, in particular, allow the tokenization of all types of assets, both standard and exotic, in regulated digital securities markets like Switzerland. Concert and event tickets, real estate, fine wines, and even a digital movie poster can all be tokenized and traded on blockchain-based platforms.
INSTITUTIONS OVERWHELMED BY CRYPTO
When Bitcoin sailed past its previous all-time high of $20,000 at the end of 2020, it served as a trigger for institutional inflow into cryptocurrencies. However, we are only at the start of our journey. According to various surveys, between 70% and 80% of institutional respondents intend to increase their cryptocurrency allocation in the coming years.
Future institutional adoption may be the best sign yet that it’s not too late to invest in cryptocurrencies. Institutional investors have large appetites for cryptocurrencies, and the cryptocurrency economy is built on supply and demand. The forces are in play for plenty more price action, thanks to rising demand and limited supply flexibility.
Overall, the cryptocurrency industry’s future has never been brighter. Despite all of the progress made over the last decade, these relatively young markets still have a lot of room for growth and development. As a result, it’s not too late to join in.
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