The cryptocurrency market, or any market in general, is a circle divided into half between a seller and a buyer. That circle looks like a graph. The percentage of buying and selling increases, and it also leads to the change that occurs in the market.
While someone is buying, at the other end someone is selling, but what motivates each person to carry out the buying and selling process? In the past, the goal was investment, but with the development and diversification of cryptocurrencies, it has become a means of trade and purchase just like many traditional payment methods.
Cryptocurrencies are a solution to inflation
Many people are using cryptocurrencies as a solution to escape the inflation that is now occurring in many countries due to the financial crises and conflicts taking place around the world at the present time, which has led to many people being afraid of cash currencies.
Paper currencies have failed to provide security to the investor as well as to the ordinary citizen for use, with inflation increasing at a large rate and with the rise in bank interest rates, everyone knows that in the end the purchasing value of your savings in the bank will decrease.
Therefore, cryptocurrencies have become a safe haven for users to preserve the value of their capital with the great fluctuation in the prices of basic commodities and metals, as well as the exaggerated rise in real estate prices in many countries.
Cryptocurrencies are a store of value
As I talked about, cryptocurrencies have become a positive means, not only of investment, but as a store of value for many. Therefore, buying cryptocurrencies is no longer just for the purpose of obtaining a profit. Rather, I think if the price of cryptocurrencies decreases from 5 to 10%, then for some countries the local currency is declining rapidly. Rocket is a good thing as you will maintain the value of your capital.
But despite that, there is no need to worry, as Bitcoin is moving at good pace with the entry of the ETF and with a lot of investments and reliance on Bitcoin, as we saw it rise to reach 34 thousand dollars, a good increase that reached 11% this week alone, as well as Ethereum and many other currencies.
And you, what do you think ?
Thank You
