Cryptocurrency market fluctuating: Banks will operate with stable crypto-currency only
We have seen the rise of the cryptocurrency market in the last few years by a huge metric. Once there was a time, it was just thought of as some digital reward and actually had no value. But with its popularity and rarity realized by the general population. The market took off. Currently, many states take cryptocurrencies such as Bitcoin, Ethereum, ripple, lite coin, as a gateway payment. Big companies also cash them in from customers to conduct huge deals.
The value of one Bitcoin was $125 in October 2010 according to Coindesk. It took a burst in 2018 and the highest rate was $17,221. After that, it took downhill and exploded again in 2020. In the first week of 2021, the price for one BTC was equivalent to almost $39,000 with an all-time high of $41,962.36. It has been fluctuating a lot and on 12th January, the price dropped -17.88% to $31,513. It is not stable but the rise is phenomenal.
The second most famous cryptocurrency Ethereum (ETH), took a mixed hit. In 2018, only BTC was not at the top chart, ETH also had a rise in price at $1200 and in January 2021, it’s fluctuating from $1200-$950. The market is not as stable as we can see.
Some banks in the US started a transition using stable cryptocurrencies. Giving digital golds a so-called solid footing in the legal market. Cryptocurrencies are still illegal in many states. As it has the power to disguise itself in an untraceable user wallet. Since it can’t be tracked, many governments still don’t allow cryptocurrency for transitions.
FCA (Financial Conduct Authority) signed a warning that investment in crypto may be a huge risk at the moment. As the cryptocurrency market can be fluctuated by fattest wallet holders, the general consumers may not have any protection. Big investors are at high risk according to them.
It is possible to transfer a million bucks in 10-15 minutes for about a dollar, which makes it so reliable and dangerous at the same time. Investors who are looking to make a huge profit in a short period of time may find themselves at a loss after another burst.
Ripple is one of the most popular cryptocurrencies which partakes directly with Ethereum. Ripple coin called XRP was worth $2.34 according to the report done on January 2, 2018. We have seen its fluctuation too. It is still a matter of concern of how we use the cryptocurrency and its state. There are about four million BTC left to mine, which makes it rarer and more miners are joining in teams to cultivate it.