Twenty eighteen was a fantastic year for crypto enthusiasts and investors alike, with the price of bitcoin hitting nearly $20,000 at its peak in mid-December. This meteoric rise sent shockwaves through the global economy, with many wondering how they could get involved in the market without breaking the law and ending up on the wrong side of federal regulators.
The rise of initial coin offerings
In recent years, there has been a crypto boom with the rise of initial coin offerings. This is when a company creates a new digital currency and sells it to investors to raise funds. So, what caused this crypto boom? Why have we seen such an increase in initial coin offerings (ICOs)? Experts believe that much of the blame can be attributed to Bitcoin’s 2017 price spike. The price for one Bitcoin was $1,000 at the beginning of 2017 and reached $19,000 by December 29th. During that time, ICOs became more popular as they allowed startups to bypass venture capitalists or banks by using cryptocurrencies as their funding source. Since many people saw the opportunity to get rich quickly, they jumped on board and bought into these companies. For example, the EOS project raised over $4 billion in its ICO after Ethereum’s success.
The price surge of Bitcoin and Ethereum
The crypto boom was caused by Bitcoin and Ethereum prices surging. The demand for Bitcoin and Ethereum increased, leading to a price increase. The price increases caused more people to invest in Bitcoin and Ethereum, which led to even higher prices. This created a feedback loop that resulted in the crypto boom. In other words, the crypto boom has been self-sustaining as investors buy cryptocurrencies as they get priced up. Some experts believe this is due to some countries issuing digital currencies and major companies accepting Bitcoin payments. Other factors are also said to be responsible such as Goldman Sachs announced plans to trade Bitcoin futures, but the underlying reason remains unclear.
Crypto trading on social media platforms
Crypto trading has recently exploded on social media platforms like Reddit and Telegram. A big reason for this is these platforms’ ease of use and accessibility. For example, Reddit allows users to easily create and share posts and links, while Telegram provides a fast and secure way to send messages. Social media platforms like Twitter and Reddit have been ablaze with cryptocurrency trading activity. In the past few months, there has been a surge in interest and adoption of digital currencies like Bitcoin and Ethereum. This has led to a corresponding price increase, with Bitcoin reaching an all-time high of over $19,000 in December 2017.
Online gambling on cryptocurrencies
Cryptography is a tool that cryptocurrencies utilize to protect their transactions and control the issuance of new tokens. Cryptocurrencies are digital or virtual tokens. Due to their decentralized nature, cryptocurrencies are not governed by any one government or financial organization. In 2009, Bitcoin, the first and most well-known cryptocurrency, was created.. Cryptocurrencies are often used for online gambling because they provide anonymity and can be used to make quick and easy deposits and withdrawals. In October 2017, all three major credit card companies announced they would no longer process cryptocurrency purchases with their cards, so many gamblers turned to bitcoin instead. The demand is also driven by interest from institutional investors like hedge funds. These traders are drawn to the speculative opportunities presented by this new asset class but face a chicken-and-egg problem: since there is very little regulation on these markets, how do you buy something when you don’t know what it’s worth?
How to buy cryptocurrencies using fiat currency
Cryptography is a tool that cryptocurrencies utilise to protect their transactions and control the issuance of new tokens. Cryptocurrencies are digital or virtual tokens. The total market capitalization for cryptocurrencies hit an all-time high on January 7th at $800 billion before falling back to $300 billion in two weeks. The price of bitcoin has fluctuated wildly, with a rise from around $10 at the beginning of 2017 to a peak near $20,000 by December. More than 1,500 other cryptocurrencies have emerged this year as bitcoin soared from below $1,000 last January 1st to a record high above $19,000 on December 17th.
Conclusion
Various factors have fueled the rise of Bitcoin and other cryptocurrencies. These include macroeconomic factors, such as inflation and the decreasing value of traditional fiat currencies; technological advancement, including the development of blockchain technology; and social factors, such as increasing awareness and acceptance of cryptocurrencies. While it’s impossible to predict the future of cryptocurrencies, it’s clear that they’re here to stay. And while many are sceptical about their sustainability, there is no denying that these decentralized digital assets are becoming more popular among investors daily. In 10 years, we may discuss how people made fortunes from investing in cryptocurrencies – or maybe not!
