Is It Possible to Predict Cryptocurrency?
Published on: 23 Oct 21:40
Cryptocurrency has many ardent supporters who are just waiting for cryptocurrency to take off, grow and expand, and become the biggest currency outside of perhaps the US dollar. However, with the inherent unpredictableness of cryptocurrency, many, even ardent supporters, are starting to wonder if it is even possible to predict when cryptocurrency will fulfill its potential.
cDuel is an online trading simulator game where you can sign up for free to practice trading cryptocurrency. Using real time values of actual cryptocurrencies, you compete against others as you try to maximize the return on investment of your portfolio. This is a great way to learn about how to trade cryptocurrency in a safe, fun environment, risk-free, as well as learn about all of the different types of cryptocurrencies. Below, we’ll take a look at some of the current trends and predictions of cryptocurrency and then explore if the likelihood that these predictions will come true. Contact us today to get started!
2020 TRENDS IN CRYPTOCURRENCY
Cryptocurrency is a digital currency that anyone can use. It’s managed through cryptography, which is an encryption technique that makes cryptocurrency secure. Through the use of blockchains, which are records that use cryptography, cryptocurrency transactions are recorded for all to see. In essence, these blocks are digital information (block), which in the case of cryptocurrencies, are transactions that are stored in a public database (chain).
This trend with regards to cryptocurrency has been predicted every year since Bitcoin became a reality in 2009. Cryptocurrency’s price volatility in terms of the markets has always been unstable, mainly because people don’t really know what to make of a digital currency. Most will agree that the idea is truly remarkable. However, when it comes time to implement the idea, cDuel notes that this has not been so easy.
Ever since Bitcoin hit the scene in 2009, many people have hated the idea and have done everything they can to sabotage the digital currency. This is because cryptocurrency threatens the very way we do transactions and banking — two forces that don’t want to see that happen. Other hurdles Bitcoin has faced include hacks, the Securities and Exchange Commission (SEC) involvement, a ban on cryptocurrency ads by Google, Facebook, and Twitter, and other attempts at regulation.
Yet, Bitcoin has survived it all. Now, stable coins, most notably Tether, that came about as a way to add stability to the cryptocurrency market, could overthrow it. Stable coins are coins with fixed prices and that are backed by fiat money that cryptocurrencies can peg their value to. However, Tether itself has had its own problems, like fighting allegations of being printed on demand in order of manipulate cryptocurrency prices. However, more stable coins are being introduced, which will help mitigate the effects of these allegations against Tether.
Miraculously, Bitcoin has survived. This alone should be a testament to its potential and longevity.
Bitcoin Will Continue to Dominate Cryptocurrency
Most people outside of the cryptocurrency world has probably only heard of Bitcoin. In fact, cDuel notes that many may think that Bitcoin is the only cryptocurrency. Since Bitcoin was the first cryptocurrency, it has an advantage over all the others — an advantage that is predicted to continue.
- Bitcoin is more stable than other cryptocurrencies. This will attract more investors than other cryptocurrencies.
- Scaling issues can be a problem due to the large number of transactions that occur every day. However, this is just a matter of infrastructure and capability. Fixes are in the works, such as from Lightning Network and SegWit, which are helping.
- Altcoins always follows Bitcoin. When Bitcoin goes up, so do altcoins. This naturally shows investors that Bitcoin is safer than other cryptocurrencies.
Cryptocurrencies Will Become More and More Mainstream
This is one prediction we can’t refute. Goldman Sachs plans to launch Bitcoin futures trading, and with Bitcoin EFTs right around the corner, it’s only a matter of time that Bitcoin will be traded on all major stock exchanges. Cryptocurrencies are being talked about in schools, from elementary up to the college level. It stands to reason that as more people understand what cryptocurrency is and how it works, more will test the waters by investing. This will cause more stability in the cryptocurrency markets. Thus, as people embrace cryptocurrencies, so too will governments.
Increase in Decentralized Exchanges
The whole premise around cryptocurrencies it that it is decentralized, meaning no one has control over it. It’s a digital and a global currency that anyone can use, anywhere. However, when cryptocurrency has to be exchanged on a centralized exchange, its very nature is compromised, which prompts many to use other methods of transactions. In addition, cDuel notes that decentralized exchanges will have less hacks than centralized ones (virtually none if blockchains are used). As major players develop their own decentralized exchange, there will not only be more opportunity to join in by others, but credibility will be lent, which, to be honest, is all Bitcoin and cryptocurrencies need to go mainstream
Bitcoin Price Predictions
Here is where we see a wide swing in agreement. While predicting prices of stocks is what professional financial analysts do, the important thing here is its use. Once Bitcoin and other cryptocurrencies are used by a good chunk of the population on a regular basis, cryptocurrencies will be here to stay. cDuel recommends that instead of focusing all of our time on price predictions, people should be focusing their time on education, developing uses of cryptocurrencies, and making the infrastructure to use cryptocurrencies easy to use for the average consumer. When you can go online and purchase a pizza using cryptocurrency just as easily as you can now using the US dollar or any other fiat currency, then cryptocurrency will be here to stay.
HOW CDUEL HELPS CRYPTOCURRENCY
The mission of cDuel is to help consumers understand what cryptocurrencies are and how to trade them. We do this through our interactive cryptocurrency trading simulator, which is free to use and allows anyone the chance to play. Using real time values of actual cryptocurrencies (which in itself will teach you about the prices and volatility of the particular cryptocurrency), you will have a chance to practice buying and selling them on the open market. Your goal is to maximize your return on investment as you compete against your friends.
cDuel’s cryptocurrency trading simulator is an amazing educational tool designed to help you dial in your cryptocurrency knowledge and prepare you to invest in cryptocurrency in the real world. Until more people embrace cryptocurrency, cDuel believes it will be impossible to predict what it can do. However, we can do our part by educating others about cryptocurrency and investing in it, even on a very small basis. Our platform offers many the chance to learn in a very engaging manner. You can encourage your friends and family to sign up for free on our best trading simulator game and explore cryptocurrency in a risk-free manner. Once you feel comfortable in our trading environment, you can take your knowledge and apply it in the real world. After all, being the first one in does have its advantages and who doesn’t want to earn a lot of money with a small-time investment? Visit us online today to begin!