When it comes to crypto, it is indeed a newer market. Just when digitalization kicked in, digital money became a real thing, and that's when the birth of cryptocurrency happened. Especially in the last 2 years, there has been much noise about crypto, and we look forward to exploring more about it.
What Is Happening In The Crypto World
A few months back, cryptocurrency had taken the entire Market by storm! Many financial experts have advised us to put our savings in cryptocurrency. The truth is that many people rose from rags to red carpets by investing in cryptocurrency. This naturally drew the attention of the Indian government to the crypto business, and we will discuss it more in the later sections. But just like any other medium, presently, cryptocurrency is seeing a downfall which is a source of great distress for those who have invested in it.
Here we are going to discuss the present scenario of cryptocurrency as against what it was a few months back and what the future may hold for the crypto fever.
2021 Crypto Flashback
As you may already know, 2021 was a year that saw a "never seen before" kind of spike in the rates of cryptocurrencies like Bitcoin and Ethereum! Cryptocurrency has become so popular that now the most significant companies in the world accept cryptocurrency as a payment mode. This is why enthusiasts, from school-going kids to business tycoons like Elon Musk, have all been promoting and advocating cryptocurrency.
But no sugar coating is required here- the crypto market has been brutally cold, as gauged by its performance in the first half of 2022! While the number one cryptocurrency, Bitcoin and the number two cryptocurrency Ethereum were surging at an all-time high even at the end of 2021, they seem to have taken a deadly dip in 2022.
Bitcoin and Ethereum are down by more than 50% compared to what they were at the end of the previous year.
Even though the experts have noticed minor peaks in the rates on a weekly graph, these little peaks are not enough to make up for the significant dip that has caused a rift in the value of crypto when compared to the two years!
While cryptocurrency rates may fluctuate, one aspect of cryptocurrency does not fall-cryptocurrency remains a hot topic of discussion among netizens worldwide!
Current Cryptocurrency Status
The concept of cryptocurrency is still in its infancy. There are not any experts with a lot of experience in the field who can say with guarantee what lies in the future of cryptocurrency (or its investors, for that matter), But since many people have been watching the trends very closely and have tried to analyze them, there is no scarcity of opinions and predictions regarding cryptocurrency on the internet.
Speaking from the government's point of view, a rumor was spread that the cryptocurrency trade has been banned in India. This is untrue. As of now, the Indian government is trying to find a way to legalize this trade, but they have not banned it. So even though The Reserve Bank of India is in favor of banning cryptocurrencies in India, Finance Minister Nirmala Sitharaman understands that there should be an international collaboration to make crypto prohibition law effective in the country.
Future Crypto Predictions
Here we have compiled a list of the top predictions from the top-level investors and crypto experts that may help you decide the path of crypto that you wish to take:
Some experts believe that the rates of cryptocurrencies like Bitcoin can fall even further before we can see any significant rise in their values. This means that there will be more damage done before there is any recovery.
Some other experts believe that since cryptocurrency is still very new, the crypto market is volatile. This makes it evident that it has phases of large crests and troughs. But this does not mean that the Market will remain this unstable forever.
There is also a group of optimistic experts who believe that after this tremendous fall in rates, the sky-touching high will be seen in the crypto market rates before the Market stabilizes.All these varied opinions prove only one thing- the crypto market is unpredictable, and nobody knows for sure!
In the latter half of 2022, some of the more prominent companies in the mainstream can get involved in dealing with cryptocurrency. This will give more credibility to the mode of transaction and will stabilize the Market to a certain extent!
Especially with governments all over the world trying to impose some regulations on the crypto world, it is difficult to predict future trends. Some believe that a sensible regulation would benefit the crypto market, the industry, and everybody else. The others debate that regulation would snatch away the freedom the investors enjoy presently.
It is anticipated that there may be a tax of about 30% levied on the crypto assets or profits earned by the traders by the Indian government- but there is no such law yet!
The bottom line is that the crypto market is very volatile. Here is one final piece of advice by experts that we would personally like to advocate: owing to the volatility of the crypto market, it is wise not to rely on it a lot. Experts suggest you should not invest more than 5% of your investment profile in cryptocurrency. Also, remember that, no matter how promising the future may sound or seem, do not invest anything more than you can afford to lose!